There have been some recent announcements with respect to the Stamp Duty system in NSW.
The main change being the introduction of the First Home Buyer Choice scheme but there are also a couple of other changes.
First Home Buyer Choice Scheme
The Government has announced a new scheme for First home buyers which is due to commence in 16 January 2023.
The scheme will allow first home buyers an option as to whether they pay stamp duty on the dutiable value of the property or they opt into pay an annual property tax for as long as they own the property.
The property tax is calculated based on the use of the property, with it being calculated at a lower rate if the purchaser is living in the property. Higher rates apply if you are purchasing the property as an investment.
Certain eligibility criteria will apply to this scheme.
It is important to note that this scheme is in addition to the other NSW First Home Buyers’ schemes and that the schemes/ grants can be used together in some circumstances.
Intergenerational Transfers (Primary Production)
In NSW there is an exemption from stamp duty for a transfer of primary production land to a relative that has the intention of carrying on the primary production activities, subject to meeting several eligibility criteria.
Previously, the person acquiring the property had to be an individual. Now the exemption will apply when transferring to companies, trusts, self-managed super funds, and the like providing that a link can be established between the entity and the person eligible to receive the exemption.
This allows for the next generation of farmers to carry on the farming using these structures.
Surcharge Purchaser Duty
Landowners will now also be eligible to apply for a refund of surcharge Purchaser Duty paid, if the Land is used wholly or predominately for commercial or industrial purposes rather than residential purposes.
For further information on the changes to Stamp Duty in NSW or just assistance with Stamp Duty generally, contact Everingham Solomons because Helping You is Our Business.
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