During the election campaign, the then Opposition Leader Chris Minns announced that if Labor was to be elected at the March election, that changes would be made to stamp duty for first home buyers. The Government made good on their promise and passed changes to the First Home Buyer Stamp Duty Package. Here's a summary of the changes.

The Existing Policy.

During the last term, the Perrottet Government introduced a scheme that gave first home buyers the option to either pay stamp duty or an annual property tax.

The annual property tax was a smaller yearly payment but would take longer to pay off. First home buyers purchasing a house up to $1.5 Million were eligible for the scheme.

What's the new policy?

Instead, the government will reduce the price of stamp duty paid by first home buyers on properties under $1 Million.

The new policy will allow properties purchases up to $800,000 exempt from paying any stamp duty, which is a rise from the previous $650,000 threshold. The cost of stamp duty will also be reduced for properties between $800,000 and $1million.