This program is designed to provide first homebuyers with the option to pay an annual property tax, rather than paying stamp duty upfront. It effectively started from 11 November 2022.
How does it work?
For eligible homebuyers looking for a property up to $1.5million, this program will allow you to lower the upfront costs of buying a home. Estimates predict this program will reduce the time required to save a deposit by up to 2 years.
Stamp duty vs annual property tax
Stamp duty is calculated as a percentage of the property’s market value or purchase price (whichever is higher). Stamp duty is an upfront cost, which is paid at the time of purchasing the property.
Annual property tax is calculated on the land value of the property. For the 2023 and 2024 financial year property tax rates will be:
Owner occupiers - $400 plus 0.3% of land value
Investment properties - $1,500 plus 1.1% of land value
Who is eligible?
To be considered eligible for First Home Buyer Choice you must:
be an individual (not a company or trust)
be over 18 years old
be an Australian resident, or purchase with an Australian resident
not have previously owned a property, or received a First Home Buyer Grant
be purchasing a property worth less than $1.5million
move into the property within 12 months of purchase and live in it for a minimum period of 6 months
sign the contract to purchase the home on or after 11 November 2022.
More information is available via this link: here
For more information or assistance please contact Infinite Accounting Solutions on 02 9899 4730 or via the contact page at www.ias-ca.com.au