On the 9th May 2014 the state budget announced some key changes to property taxes that will begin on 1 July this year.
The stamp duty threshold for first home buyers on established homes will drop from $500,000 to $430,000. The full schedule will phase in between $430,000 and $530,000.
For example, a first time buyer purchasing an established dwelling at $460,000 will now pay around $5,700 in stamp duty.
This tax will apply to about one third of first home buyers.
There are NO changes to stamp duty on land for First Home Buyer’s, with the tax free threshold remaining at $300,000 and tapering out at $400,000.
There are NO changes to general stamp duty for other buyers.
Land tax has been increased by 10 per cent. This is on top of the 12.5 per cent increase from last year.
First Home Owners Grant
The FHOG is unchanged at $3,000 for established homes and $10,000 for new-builds.
What will these changes mean for you? What are your opinions about these change? I would be interested to hear from you?