First home owners who buy a property this weekend can choose to pay a land tax rather than stamp duty after NSW Premier Dominic Perrottet’s long-touted property reforms passed parliament.
While the new property tax scheme will not be fully operational until January 16, any first home owners who buy property this weekend will be able to seek a refund on their stamp duty before switching to the annual tax.
The historic new laws will allow a first home buyer to opt in to a land tax for properties under $1.5 million and would pay an annual levy of $400 plus a 0.3 per cent tax on the value of their land.
Property tax rates will be indexed so that the average annual property tax payment grows at the same rate as gross state product (GSP) per capita. However, to avoid bill shock, annual increases will be capped at 4 per cent.
Eligible first home buyers will be able to access the scheme from Saturday and, while they will be required to pay stamp duty on purchases made until January 15, they will then be able to apply for a refund of their stamp duty if they choose to opt into the annual fee.
Source: Sydney Morning Herald