Stamp Duty Changes
The NSW Government will introduce legislation into NSW Parliament this week to create its simpler, fairer stamp duty concession scheme ensuring 84% or 5 out of every 6 of future first home buyers will pay no tax or a reduced rate, starting from Saturday 1 July 2023.
Under the Minns Labor Government’s changes to the First Home Buyers Assistance scheme, the threshold for stamp duty exemptions for first home buyers will be lifted from $650,000 to $800,000 and stamp duty concessions from $800,000 to $1 million.
That means a first home buyer purchasing a property at $800,000 will save up to $31,090 under the changes.
The legislation will also improve the integrity and targeting of first home buyer assistance programs, increasing the requirement to live in the home from 6 months to 12 months.
Home Guarantee Scheme changes
As the Home Guarantee Scheme has evolved over the years, it's been made available to a larger pool of buyers. And in the 2023 Federal Budget, the government proposed four changes that have broadened eligibility even further - changes that kicked in on July 1:
While the three guarantees were previously only accessible to Australian citizens, each has now been opened up to Australian permanent residents.
In an acknowledgement that individuals and couples aren't the only types of buyers out there, the government has opened up the First Home Guarantee and Regional First Home Buyer Guarantee to siblings, family members and even friends who can now apply together.
Despite the names, the First Home Guarantee and Regional First Home Buyer Guarantee are no longer exclusive to first-time buyers. Instead, people who haven't owned a property in Australia in the past 10 years can also apply for either initiative.
On the Family Home Guarantee front, single legal guardians of children (e.g. grandparents, aunts, uncles, etc) can now make use of the guarantee. Previously it had been limited to single natural or adoptive parents.
How can buyers apply for the Home Guarantee Scheme?
While the National Housing Finance and Investment Corporation administers the Home Guarantee Scheme, Australians interested in applying will actually need to do so through one of the 33 banks and mortgage lenders participating in the initiative.
The list currently includes major banks like the Commonwealth Bank, NAB and Westpac, plus a host of other familiar names such as Bank Australia, Bendigo Bank, Great Southern Bank, Newcastle Permanent and Teachers Mutual Bank.