Controversial stamp duty laws have passed NSW parliament, allowing first home buyers to choose between an annual property fee or an upfront payment on their first property.
Those buying a house from January 16 2023 will be able to opt-into the scheme, however anyone who purchases a house from Saturday November 12 until then can choose to receive a refund if they sign up to the annual fee.
The new law allows first home buyers to opt into an annual fee of worth $400 plus a tax of 0.3 per cent of the value of their land.
“The great Australian dream of home ownership just got much easier for a generation of young families,” NSW Premier Dominic Perrottet said.
“For the first time we will provide first home buyers with a choice, helping thousands of people to shave around two years off the time needed to save for a deposit.
The laws cover all properties worth up to $1.5 million or vacant lots of up to $800,000.
NSW Labor has said that it will repeal the legislation if it wins the March 2023 election, calling it a “Trojan horse” and a ”forever tax”.
“Our concern is that future governments will jack up the land tax rate,” Labor’s leader, Chris Minns, said Thursday.
“If you’re already on that merry-go-round, you have to trust this premier, and all future premiers, not to up the land tax rate on your family home.”
According to modelling by NSW Treasury, those who opt for the land tax on a $1.5 million apartment would take 63 years to “break-even” with the current value of stamp duty they would pay on the property.
A home with the same value would take 29 years to break even, while a unit worth $800,000 would take 36 years.
The NSW Government has allocated $728.6 million to First Home Buyer Choice over the next four years.
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