NSW home buyers can now opt to pay land tax under new law
From this weekend, New South Wales first home buyers will have the option to opt out of paying stamp duty after new property laws were passed by state parliament overnight.
Under the legislation, buyers can choose between paying a land tax rather than costly stamp duty.
The new property tax scheme will cost the government more than $720 million over the next four years.
EXPLAINER: The NSW government's new first-home buyer scheme
Under new laws in NSW, first home buyers have the option of switching to a land tax instead of paying stamp duty. AAP
It will not be fully up and running until January 16, but any first home owners who buy property this weekend will be able to apply for a refund on their stamp duty before moving to the annual tax.
Under the new laws, a first home buyer has the choice to switch to a land tax for properties under $1.5 million.
For the purchase of vacant land intended for the construction of a first home, the price cap will be up to $800,000.
Property tax reform has been long championed by NSW Premier Dominic Perrottet who said the new law would be a "game changer" for first home buyers, helping families get on the property ladder.
"The great Australian dream of home ownership just got much easier for a generation of young families," Perrottet said.
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NSW Premier Dominic Perrottet has championed property tax reforms. Kate Geraghty
"For the first time we will provide first home buyers with a choice, helping thousands of people to shave around two years off the time needed to save for a deposit.
"People can now save huge sums of money on the biggest purchase of their life."
The state government says the new property tax scheme will be available for every eligible first home buyer who wants to access it.
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