Legislation has been introduced into Parliament to create a simpler, fairer stamp duty concession scheme.
The new laws will ensure five out of every six of future first home buyers will pay no tax or a reduced rate, starting from 1 July.
Changes to the First Home Buyers Assistance Scheme mean the threshold for stamp duty exemptions for first home buyers will be lifted from $650,000 to $800,000 and stamp duty concessions from $800,000 to $1 million.
A first home buyer purchasing a property at $800,000 will save up to $31,090 under the changes.
The legislation will also improve the integrity of first home buyer assistance programs by increasing the requirement to live in the home from six months to 12 months.
The Treasury will close off access to the First Home Buyer Choice (FHBC) scheme on the same day the changes come into force.
In a statement, the Treasury said the legislation would include grandfathering provisions so first home buyers who opted into the annual property tax can continue to pay that tax until they sell their property.
“The changes to the First Home Buyers Assistance Scheme will result in a simpler, fairer system than the FHBC, where first home buyers purchasing properties at the top of the range received a disproportionate share of the benefits,” Treasury said.
Treasurer, Daniel Mookhey said the new policy would deliver the most help to the first home buyers most at risk of leaving the housing market altogether as interest rates went up.
“Now, five out of every six first home buyers will get help to own the roof over their heads,” Mr Mookhey said.
“It will benefit more first home buyers overall and more fairly go to those who need it most,” he said.