02 June 2023
The NSW Government has recently implemented changes to housing grants and schemes aimed at supporting first home buyers in the state.
Expansion of the First Home Buyer Assistance Scheme (FHBAS): Starting from 1 July 2023, eligible first home buyers will benefit from increased thresholds for transfer duty exemptions. The exemption threshold for both new and existing home purchases will rise from $650,000 to $800,000, while the concessional rate threshold will increase from $800,000 to $1 million.
Phasing out of First Home Buyer Choice (FHBC): Access to the First Home Buyer Choice (FHBC) will be closed off by the government. Purchasers who have exchanged contracts on or before 30 June 2023 will have until settlement to opt-in to FHBC. However, from 1 July 2023 onwards, the option to choose between property tax and transfer duty on new purchases will no longer be available.
Changes to Transfer Duty Exemptions and Concessions: Starting 1 July 2023, first home buyers purchasing a property valued at $1 million or more will be ineligible for transfer duty exemptions or concessions. They will be required to pay transfer duty as per the applicable rates.
Residence Requirement Changes: The residence requirement will be modified for the following programs:
- First Home Buyers Assistance scheme
- First Home Owner grant
- Deferral of transfer duty payment for off the plan transactions
- Exemptions for tenants of the Department of Housing and Aboriginal Housing Office
For contracts entered into on or after 1 July 2023, purchasers under the mentioned schemes, grants, or exemptions must move into their homes within 12 months of settlement and reside in the property continuously for a 12-month period to meet the residence requirement.
Contact Information:
First Home Buyers Choice Dedicated support line: 1300 135 195
First Home Buyers Assistance scheme Phone: 1300 139 814 Email: [email protected]
First Home Owners Grant scheme Phone: 1300 130 624 Email: [email protected] Please mention the source contribution from https://www.revenue.nsw.gov.au/news-media-releases/support-for-first-home-buyers-is-changing
These changes reflect the NSW Government’s efforts to provide continued support for first home buyers while ensuring the fair and effective administration of housing grants and schemes.