The new NSW First Home Buyer Choice scheme has given first home buyers an opportunity to lower the upfront costs of your purchase of a property, whilst also reducing the time needed to save a deposit, fast-tracking your way to a new home.

What is the First Home Buyer Choice?

First Home Buyer Choice is a government initiative that allows first home buyers the choice to either pay the existing upfront stamp duty (known as transfer duty) or an annual property tax when they are seeking to purchase:

  • Residential land (a new or existing home) for up to and including $1.5 million
  • Vacant land on which they intend to build a home for up to and including $800,000.

What is the difference between stamp duty and the annual property tax?

Stamp duty is an upfront payment required to be paid when purchasing a home. This payment is calculated as a percentage of the property’s purchase price or current market value. With a constantly shifting property market, stamp duty has continued to significantly increase over the years. This has made it, in some cases, increasingly difficult for first-home buyers to purchase a property.

To combat the increasing rates, the government has provided the alternate option of an annual property tax. The annual property tax is a series of payments that are based on the land value of the purchased property. This is typically deemed the lower upfront cost, particularly for first-home buyers needing to save their funds. However, it is important to remember that alike to stamp duty rates, this tax may become increasingly costly in the long run. The property tax rates for 2022-2023 and 2023-2024 include:

  • $400 plus 0.3% of land value for properties whose owners live in them
  • $1500 plus 1.1% of land value for investment properties.

*It is important to also note that once a property has opted into property tax, the eligible purchaser/transferee will remain liable for annual property tax until they no longer hold an interest in the property.

What are the eligibility requirements for a first home buyer in NSW?

The eligibility criteria given to first-home buyers in NSW include that:

  • You must be an individual (not a company or organisation)
  • You must be over the age of 18
  • You (or at least one person you’re buying with) must be an Australian citizen or PR
  • The property you are buying must be worth less or equal to $1.5 million
  • You must move into the property within 12 months of your purchase, and live in it continuously for at least 6 months.
  • You must sign the contract of purchase on or after 11 November 2022

What are the property requirements that fit within the First Home Buyer Choice?

  • Eligible properties include a house, townhouse, strata unit, company title unit, flat, duplex or a vacant block of residential land intended as the site of a first home.  
  • A property is not eligible if it includes a business or business premises or is the site of a holiday home. 
  • The value of the property (dwelling) you’re buying must not exceed $1.5 million. If you’re buying vacant land, it must not exceed the value of $800,000. 
  • You must move into the property within 12 months of purchase and live in it continuously for at least 6 months. 

It is important to also note that this application needs to be thoroughly checked and completed. Particularly with regards to submitting the correct and appropriately formatted documents in order to allow your application to be successful and to allow first-home buyers, when purchasing, to be at ease. 

M Legal’s lawyers’ experience within the property market, and particularly throughout the fluctuations caused by the pandemic, is well equipped to give you clarity on this entire process. With our knowledge, we can assist you with your First Home Buyer Choice application and put the most robust case together for you to make this work easier for you.

Contact Us

If you found this article useful, give us a call and book in your consultation with M Legal today!

Written by Sarah Mathew on behalf of M Legal’s lawyers

Here’s what you need to know and why.

Despite borders opening and tourism being encouraged in Australia while the country’s economy recovers, applicants will find that the Subclass 600 Visitor Visa (600 visa) is not as easy to secure. Refusal of 600 visas has become more common recently.  For this reason, understanding the criteria of the 600 visa is integral to ensure you can put forward the best visa application and obtain a positive outcome.

What is a visitor visa?

The 600 visa is a temporary visa that allows you to visit Australia as a business visitor or see family and friends for up to 12 months. The streams provided under this visa includes:

  • Tourist Stream 
  • Sponsored Family Stream
  • Business Visitor Stream
  • Approved Destination Status Stream
  • Frequent Traveller Stream

*It is important to note that each stream has differing criteria, and as an applicant you need to consider which stream you are applying for, and if you meet the criteria for that particular stream.

Who is eligible for this visa and who would apply?

You would also need to apply for this particular visa on the basis that you do not meet the requirements of an eVisitor (Subclass 651) or an Electronic Travel Authority (ETA). 

The common eligibility for this visa is inclusive of:

  • Intends to visit Australia as a tourist, business visitor, relative of an Australian permanent resident or citizen or ‘other’ reasons allowable under the 600 visa 
  • Having access to or have adequate funds, enough to support your stay in Australia (as well as departure)
  • Being classified as a Genuine Visitor, that is, do you have a genuine intention to stay temporarily in Australia?

This eligibility needs to be thoroughly considered when deciding upon applying for a visitor visa as you will undergo the scrutiny of a Department of Home Affair’s decision maker.

What makes applying for the 600 visa challenging?

We see 600 visa refusals mainly due to applicants failing to meet the ‘Genuine Intention to visit Australia temporarily’.  This appears to have become a focal point in decision makers refusing entry to individuals. 

In determining whether an applicant has a genuine intention to stay temporarily in Australia, a decision maker must consider the following:

  1. Whether the applicant has complied substantially with the conditions of their past visas
  2. Whether the applicant intends to comply with the conditions of their 600 visa
  3. Any other relevant matter

(b) and (c) are usually the two considerations where the decision maker has quite a broad discretion to consider a number of factors to be able to finally assess if the applicant can meet the genuine intention criteria.  This unfortunately can lead to unfair findings made by the Department’s case officer.

Some of the considerations for (b) are:

  • Adverse information or allegations against any applicant or a contact in Australia
  • Financial support during the applicant’s stay (without engaging in any work in Australia)…

Some of the considerations for (c) are:

  • Your employment and financial conditions
  • Economic, social and political situation relative to the applicant’s home or usual country of residence
  • Incentive to return to their home country or usual country of residence…

Why is this important to understand?

A lot of clients believe that applying for a 600 visa is straightforward.  In most cases it can be, however at other times, understanding how to put the best case forward by applying the laws, making succinct arguments and supporting the case with the right evidence, can improve your chances of success towards a positive visa outcome.

This is particularly important as overseas applicants mostly do not have a right of appeal of any 600 refusal decision.

The 600 visa stands as one of the most popular immigration visas, and thus, due to the high number of applications received by the Department of Home Affairs each year, the legislation for approval of this visa is strict and non-negotiable.  

M Legal’s lawyers’ experience makes us well equipped to help navigate and give you clarity on this entire process. With our knowledge, we can assist you with your next 600 visa application and put the most robust case together for you to make this work easier for you.

Contact Us

If you found this article useful, give us a call and book in your consultation with M Legal today!

Written by Sarah Mathew on behalf of M Legal’s lawyers.

The Foreign Investment Review Board (FIRB) is a governing body who evaluates applications of interest by foreign persons to invest or buy a home in Australia. This process is done in accordance with the Foreign Acquisitions and Takeovers Act (1975).

The government regulates foreign investment to ensure that the investment is beneficial to Australia.

Who does not need FIRB approval? 

  1. Australian and New Zealand citizens
  2. Australian permanent residents
  3. Temporary residents who purchase property as ‘joint tenants’ with an Australian or New Zealand citizen spouse or an Australian permanent residence spouse
  4. Foreign persons who purchase property as ‘joint tenants’ with an Australian or New Zealand citizen spouse or an Australian permanent residence spouse

If you fall into any of these categories:

  • You are able to purchase a new property, established property or vacant land
  • If it is a new property or vacant land, you can live in the property or the property can be an investment. If it is an established property, you will need to use it as your principal place of residence. 

Who needs FIRB approval and what are the conditions?

  1. All temporary residents require FIRB approval.

Temporary residents include (but are not limited to):

  • All temporary visa holders (regardless of the visa period length) e.g., student visa holders, temporary graduate visa holders.
  • Those who are residing in Australia and have submitted an application for a permanent resident visa and is awaiting the outcome of this application.

Temporary residents can purchase one established dwelling which must be used to live in. If you cease to live in this property, then you are required to sell it.

A temporary resident is also able to purchase new dwellings, vacant land and/or established dwellings for redevelopment. This can be purchased alongside the established dwelling (that is used as their primary place of residence). There is no restriction on how many new dwellings are purchased as long as they are approved by the FIRB.

  • All foreign investors require FIRB approval

Foreign persons are able to purchase an investment property but it must be a new property or vacant land on which a new property will be built.

Foreign persons are typically prohibited from buying established properties in Australia. There are some exemptions to this including:

  • If an application to redevelop an established dwelling proves that it will genuinely expand Australia’s housing stock.
  • If it is a property you have inherited
  • If it is awarded by a court order
  • If the property was awarded as part of a divorce settlement

Please refer to the government website linked here for more details.

How to get FIRB approval:

You can apply for FIRB approval directly through the Australian Taxation Office (ATO) website. The instructions to apply for a residential real estate application are linked here.

The ATO charges an application fee for all FIRB applications. This fee is dependent on the property value.

Every matter is unique and has its own nuances. As such, it is best you read the FIRB’s guidance notes and contact the ATO for any further questions: https://firb.gov.au/about-firb/contact-us.

Written by Priscilla (and edited by Sofia Maniam)