The NSW Government have recently announced changes to the threshold amounts under the First Home Buyer Assistance Scheme (FHBAS) that take effect from 1 August 2021. The FHBAS was introduced as a way to ease the restrictive nature of transfer duty on first home buyers trying to enter the property market.
The FHBAS applies to first time purchasers buying:
an existing home;
a new home; and
vacant land on which the purchaser intends to build a home.
The NSW Government previously increased the transfer duty thresholds under the FHBAS for the period between 1 August 2020 to 31 July 2021 (inclusive). By increasing the thresholds, the Government essentially increase eligibility.
We have set out the changes to the thresholds in the table below:
The return to lower transfer duty thresholds from 1 August 2021 for purchases of vacant land and new homes, while predetermined, seems to be contradictory to NSW Government’s overall policy to support the property and construction industry in the current COVID-19 lockdown.
Henry William Lawyers can assist with any related enquiries, please contact:
Ron Zucker 0410 590 111
Vincent Tripodina 0408 228 108
Chelsea Woodward 0404 065 899