The New South Wales Government has announced a new budget proposal proposing to allow First Home Buyers to dodge the stamp duty payment by electing to pay an annual property tax instead. This budget proposal eases a huge financial burden upon the First Home Buyers as it lowers the upfront costs of buying a property in New South Wales. This is great news for many first home buyers as this lowers the barriers to purchase a property in NSW. Making many first home buyer’s dream to purchase a place of their own more achievable.

Eligible first home buyers will have two options to pay for the tax:

1. Stamp Duty
First home buyers will continue to enjoy stamp duty exemption or concession for properties under $800,000.00

2. Property Tax
First home buyers who elects to pay for the property tax instead of the upfront stamp duty will pay an annual property tax of $400 plus 0.3% of the land value of the property.

Eligibility to opt-in for annual property tax payments
1. Over the age of 18 years;
2. Australian Citizen or PR;
3. Never owned a property in Australia before (both purchaser and their spouse/partner);
4. Must occupy the property as their principal place of residence for a continuous period of 6 months within 12 months from the settlement date.
5. Purchase price must not exceed $1.5 million;

Commencement of the New Property Tax
The NSW government plans to enact the legislation later this year and roll out the annual property tax scheme from 16 January 2023.

Should you have any enquiries in relation to this annual property tax, please feel free to contact betsy.yeong@sunlaws.com

Sorry, this entry is only available in 中文.

The NSW Government’s proposed 2022-2023 Budget not only included the stamp duty reform mentioned in our last article. It also included the increase of land tax surcharge for foreign landowners. The surcharge will be increased from 2% to 4% of the taxable value of the residential land starting in the 2023 land tax year.

Who needs to pay Foreign Owner Surcharge Land Tax?

As suggested by the name, only foreign persons who own residential land in NSW is required to pay for this Surcharge Land Tax. You are considered a foreign person, unless:

• You are an Australian citizen; or
• You’ve lived in Australia for 200 days or more in the 12 months prior to the taxing date of 31 December, and you’re:
  • A permanent resident of Australia, or
  • A New Zealand citizen, who holds a subclass 444 visa.

This reform of Land Tax makes foreign landowners responsible for the general land tax as well as the surcharge land tax, totaling approximately 6% of the total value of the taxable land on a yearly basis.

Why the sudden hike?

The property market in NSW experienced upswing for the past few years leading to many foreign buyers purchased properties within NSW creating a shortage of properties in NSW. This increase of surcharge land tax proposed by the NSW Government is no doubt a move to create larger financial burden upon foreign landowners, which may lead potential foreign buyers to look for properties in other states and slow the property market in NSWs.

Should you have any enquiries in relation to the increase of surcharge land tax, please feel free to contact our office on 02-92674988.

The New South Wales Government has announced a new budget proposal proposing to allow First Home Buyers to dodge the stamp duty payment by electing to pay an annual property tax instead. This budget proposal eases a huge financial burden upon the First Home Buyers as it lowers the upfront costs of buying a property in New South Wales.  This is great news for many first home buyers as this lowers the barriers to purchase a property in NSW. Making many first home buyer’s dream to purchase a place of their own more achievable.

Eligible first home buyers will have two options to pay for the tax:

1. Stamp Duty

First home buyers will continue to enjoy stamp duty exemption or concession for properties under $800,000.00

2. Property Tax

First home buyers who elects to pay for the property tax instead of the upfront stamp duty will pay an annual property tax of $400 plus 0.3% of the land value of the property.

Eligibility to opt-in for annual property tax payments

1. Over the age of 18 years;
2. Australian Citizen or PR;
3. Never owned a property in Australia before (both purchaser and their spouse/partner);
4. Must occupy the property as their principal place of residence for a continuous period of 6 months within 12 months from the settlement date.
5. Purchase price must not exceed $1.5 million;

Commencement of the New Property Tax

The NSW government plans to enact the legislation later this year and roll out the annual property tax scheme from 16 January 2023.

Should you have any enquiries in relation to this annual property tax, please feel free to contact betsy.yeong@sunlaws.com

Sorry, this entry is only available in 中文.

Sorry, this entry is only available in 中文.

Sorry, this entry is only available in 中文.

Sorry, this entry is only available in 中文.