The decision to opt into property tax or pay transfer duty is final once the land is transferred. Until that time, the eligible purchasers/transferees may change their mind as set out in Section 16 of the Property Tax (First Home Buyer Choice) Act 2022.
However, transactions that are eligible to retrospectively opt into property tax may be able to opt into property tax after the land has transferred. For more information refer to Chapter 5 - Retrospective applications to opt into property tax.
Revoking an application to retrospectively opt into property tax
For details on how to revoke an application to retrospectively opt into property tax, refer to Chapter 5 - Retrospective applications to opt into property tax.
How to cancel an assessment processed through EDR
An EDR approval holder may cancel an assessment online through their Client Service Provider (CSP). Some assessments cannot be cancelled online and must be lodged for cancellation by Revenue NSW via eDuties.
To cancel an assessment processed through EDR where the purchaser/transferee change their mind prior to the transfer of the land, please refer to the table below.
Note: The instructions provided below do not apply to Retrospective applications to opt into property tax. That is, transactions executed on or after 11 November 2022 and before the 16 January 2023.
| If the eligible purchaser/transferee has chosen to … | And they would now like to… | Then the solicitor or conveyancer must… |
|---|
|
Opt into property tax
| Pay transfer duty - the land has not been transferred | - Process a new assessment in EDR to pay transfer duty
- Cancel the previous assessment via the (CSP) using the cancel duties assessment option.
|
|
Pay transfer duty
| Opt into property tax - transfer duty has not been paid and - the land has not been transferred | - Process a new assessment in EDR to opt into property tax.
- Cancel the previous assessment via the (CSP) using the cancel duties assessment option.
|
|
Pay transfer duty
| Opt into property tax and - transfer duty has been paid and - the land has not been transferred | - Submit an application for a reassessment and refund in eDuties using application type “First Home Buyer Choice - Assessment Application”.
Note: this is not the process to retrospectively opt into property tax. |
|
Receive a concession on transfer duty under the First Home Buyer Assistance scheme
| Opt into property tax and - transfer duty has not been paid and - the land has not been transferred | - Cancel the assessment by submitting an application in eDuties to cancel the assessment using application type “EDR - Cancellation of assessment”.
- Once confirmation that the cancellation has been completed, a new assessment can be processed in EDR to opt into property tax.
|
|
Receive a concession on transfer duty under the First Home Buyer Assistance scheme
| Opt into property tax - transfer duty has been paid and - the land has not been transferred | - Submit an application for a reassessment and refund in eDuties using application type “First Home Buyer Choice - Assessment Application”.
Note: this is not the process to retrospectively opt into property tax. |
|
Opt into property tax
| Receive a concession on transfer duty under the First Home Buyer Assistance scheme - the land has not been transferred | - Cancel the assessment by submitting an application in eDuties to cancel the assessment using application type “EDR - Cancellation of assessment”.
- Once confirmation that the cancellation has been completed, a new assessment can be processed in EDR.
|
For more information on how to cancel an EDR transaction, refer to Guide to cancelling EDR transactions.
How to cancel an assessment processed by Revenue NSW
For transactions involving a change of mind that have been assessed by Revenue NSW, an application must be submitted via eDuties using application type “First Home Buyer Choice - Assessment Application”.
To avoid delays, ensure all evidentiary requirements, proof of identity documents and forms are submitted in eDuties at the time of application.
Helpful information
Cancelled agreements and transfers
First Home Buyer Choice does not change the process of dealing with cancelled agreements (Section 50 of the Duties Act 1997) and cancelled transfers of dutiable property (Section 51 of the Duties Act 1997).
These applications must be submitted in eDuties using application type “Cancelled agreements (for the sale or transfer of dutiable property) - Section 50” or “Cancelled transfers of dutiable property - Section 50A”.
