First-home buyers in NSW will be allowed to pay annual land tax instead of stamp duty – as long as the home costs less than $1.5 million. 🏡💰
Under the proposal, buyers can choose to pay either the stamp duty up front or pay the property tax of $400 a year, plus 0.3 per cent of the land value. It will start in January 2023 next year.
NSW Premier Dom Perrottet said he hoped it would allow first-home buyers to get up the property ladder faster. Homebuyers currently pay around $40,000 in stamp duty on the purchase of a $1 million home, equivalent to 16 years of land tax. I also think he might think the NSW property will increase in value faster to make it a richer state.
It comes after the state government unveiled a co-owning and buying structure for frontline workers, single parents and older singles to tackle housing affordability issues.
The question now is wow, won’t the house soar up?
As the leading CPA accountant in Ashfield Inner West Sydney, Belrose Northern Beaches, and Adelaide South Australia, our motto is to help the small business to gear up in their tax position, if you would like to find out more about negative gearing, self-managed super fund buying property, let us know, give us a call.
