New stamp duty policy for first time home buyers
We recently reported on the potential changes to stamp duty for first time home buyers, which would see significant increases to the threshold.
These came into play on Saturday 1 July, with the threshold for stamp duty exemptions increasing from $650,000 to $800,000 and the threshold for stamp duty concessions rising from $800,000 to $1 million.
This means first home buyers purchasing a property up to $800,000 will pay no stamp duty, and under the changes, will save up to $30,735.
Based on the current housing market, NSW Treasury expects about 8600 first home buyers in the $650,000 to $800,000 range to pay no stamp duty over the next year.
For properties priced $800,000 – $1m, there is a sliding scale of concessions; for instance, under the incoming rates, an $850,000 property will incur a stamp duty tax of $9,934 instead of $32,985 – saving buyers $23,051.
The Government suggests about 4400 first home buyers in the $800,000 to $1 million range to pay a concessional rate of stamp duty.
| Purchase price | Stamp duty without FHBAS | New stamp duty with FHBAS | Savings |
| $650,000 | $23,985 | $0 | $23,985 |
| $750,000 | $28,485 | $0 | $28,485 |
| $800,000 | $30,735 | $0 | $30,735 |
| $850,000 | $32,985 | $9,934 | $23,051 |
| $900,000 | $35,235 | $19,868 | $15,367 |
| $950,000 | $37,485 | $29,801 | $7,684 |
| $990,000 | $39,285 | $37,748 | $1,537 |
Annual property tax abolished
This new legislation replaces the annual property tax, which gave buyers the option of paying an annual amount, instead of the one of stamp duty.
However, first home buyers who opted into the annual property tax can continue to pay that tax until they sell their property.
The former scheme closed on Friday 30 June 2023. Buyers who opted in will continue to pay property tax until they sell that property.
Treasurer Daniel Mookhey said Labor’s new policy is fairer and simpler, and says these changes will help five out of every six first home buyers pay no stamp duty, or a concessional rate.
More details about this new legislation can be found here.
With potentially more buyers looking to enter the market, home owners who are thinking about moving, now might be the time to consider selling.
Find your suburb’s medium value
Find out the medium house price in your area by using CoreLogic Home Value Index, the Mapping the Market tool. This tool provides a visual guide to current median value, and quarterly and annual change in values of each suburb across Australia, including suburbs in Newcastle.
The Mapping the Market Report also shows each suburb’s capital growth and rental market performance for houses and units.
The metrics provided in the report are:
- Median value
- Three-month change in the CoreLogic Home Value Index
- 12-month change in the CoreLogic Home Value Index
- Median weekly rental value
- 12-month change in the CoreLogic Rental Value Index
The interactive format provides valuable insight into how the value of housing varies nationally across cities, including the Newcastle region, as well as how values have shifted over time.
While these types of tools can give you a guide to values, for a deeper insight and greater understanding of our local property market, we believe you can’t beat local knowledge and experience.
If you’re thinking of selling, or would just like to know what your house could get in today’s market, contact us for a free, independent and non-obligatory quote. Our experienced team will also give you tips and ideas and how to prepare your property for an open inspection.
Being one of Newcastle’s longest established real estate offices, our innovative team can give you great advice on what you can do to improve your property right now and we are constantly achieving great results for our clients.
Contact us now on 02 4954 8833. Or send us an email to: mail@apnewcastle.com.au.
If you’re looking for more handy tips on selling your property, or what to look for when buying or selling a property check out our Facebook page.