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The NSW government’s First Home Buyer Choice legislation has been passed by the Upper House. It is limited to first home buyers that purchase homes valued up to less than $1.5 million or vacant land intended for the construction of a first home valued under $800,000, and gives them the option of paying an annual fee equal to $400 plus 0.3% of the land value, rather than an up-front lump sum of stamp duty.
Treasurer Matt Kean said the reforms will see many first-home buyers save money, while it is expected to cost the government almost $730 million over four years.
The legislation is seen as the first step to phasing out stamp duty completely over coming years.
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About the author
Leith van Onselen is Chief Economist at the MB Fund and MB Super. He is also a co-founder of MacroBusiness.
Leith has previously worked at the Australian Treasury, Victorian Treasury and Goldman Sachs.