From today, first home buyers in New South Wales will be able to opt out of paying stamp duty upfront in exchange for a smaller annual tax. 9News READ MORE:
The home has to be $1.5 million or less, you must be an Australian citizen or permanent resident, and you have to move into the house within the first year and live in it for at least six months.Under the new program, you can choose to instead pay an annual tax of $400 plus 0.3 per cent of the land value .Can I see some examples?
Someone buying their first home in Sydney for $830,000 with a land value of $265,000 can choose between upfront stamp duty of $32,440 or an initial annual property tax of $1195. A person purchasing a different Sydney house for $1,350,000 with a land value of $810,000 can pay $59,125 in stamp duty - or an initial annual property tax of $2830.No. If properties that are subject to the property tax are sold, they will not be locked into the property tax for subsequent owners.
The new owners, if they are first home buyers, can then choose whether to pay the annual land tax or stamp duty.What if I move out and it becomes an investment? If you bought the property as a first home buyer, opted for the property tax and then turned it into an investment, the scheme changes.The policy is specifically designed to help first home buyers get into the property market.The median time people hang onto their homes in NSW is ten-and-a-half years.Based on that you'd probably be better off paying a smaller annual tax rather than a lump sum.
Philippines Latest News, Philippines Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Murray Valley Encephalitis detected in Victoria and New South WalesA potentially deadly mosquito-borne virus has been detected in Victoria for the first time in more than a decade. 9News
Read more »
Fears pumped hydro dam will 'take away identity' of culturally significant mountainWiradjuri people around Lithgow in New South Wales are concerned about plans for a 40-metre-high concrete reservoir on top of a mountain that holds great importance to them.
Read more »
Perrottet ‘not aware’ of any pictures of him dressed as NaziNew South Wales Premier Dominic Perrottet has denied there are any pictures of him dressed as a Nazi for his 21st birthday.
Read more »
Albanese weighs in on Perrottet scandalPrime Minister Anthony Albanese has assured Australians there are no controversial photos of him after weighing in on Premier Dominic Perrottet’s Nazi costume saga.
Read more »
NSW stamp duty refunds expected as land tax scheme beginsMore than 2,500 people are expected to apply for refunds to stamp duty paid on new homes bought since the middle of November last year when the New South Wales government’s land tax scheme officially begins today.
Read more »