The NSW Government has made several significant alterations to its housing grants and schemes, particularly the First Home Buyer Assistance Scheme (FHBAS).

Effective July 1, 2023, there will be an expansion in the assistance provided to eligible first-time homebuyers. The exemption threshold for transfer duty, applicable to both new and existing home purchases, will increase from $650,000 to $800,000. Additionally, the concessional rate will see an increase from $800,000 to $1 million.

Simultaneously, access to the First Home Buyer Choice (FHBC) program has been closed. Those who enter into contracts on or before June 30, 2023, will have the option to opt into FHBC up until the settlement date. However, beginning July 1, 2023, there will no longer be the choice between property tax and transfer duty for new purchases.

Individuals who have chosen to participate in FHBC will continue to pay property tax for as long as they own the property and will remain exempt from transfer duty for that particular purchase.

Furthermore, first-time homebuyers who purchase a home valued at $1 million or more on or after July 1, 2023, will no longer qualify for transfer duty exemptions or concessions and will be obligated to pay transfer duty.

There will also be adjustments to the residence requirement for various schemes, grants, and exemptions, including the First Home Buyers Assistance scheme, First Home Owner grant, deferral of transfer duty payment for off-the-plan transactions, and exemptions for tenants of the Department of Housing and Aboriginal Housing Office.

Starting from contracts entered into on or after July 1, 2023, purchasers participating in the aforementioned schemes, grants, or exemptions must move into their homes within 12 months of settlement and reside in the property continuously for a period of 12 months to meet the residence requirement.

To read more you can go to NSW Government First Home Buyers Assistance Scheme Program.