Stamp duty for first home buyers in NSW
This guide explains how stamp duty works, who qualifies for concessions, exactly how much you can save at different price points, and how to combine stamp duty savings with other first home buyer benefits for maximum impact.
Quick summary: First home buyers in NSW can access generous stamp duty concessions. Properties up to $800,000 qualify for a full exemption (you pay $0), while properties between $800,001 and $1,000,000 attract reduced rates. For vacant land, full exemption applies up to $350,000, with concessions up to $450,000.
What is stamp duty?
Stamp duty (officially called transfer duty) is a state government tax you pay when purchasing property in NSW. It is calculated based on the property's purchase price or market value, whichever is higher. For regular buyers, stamp duty is a substantial cost. On a $500,000 property, you would pay approximately $17,029. On a $750,000 property, that figure rises to approximately $28,279. And on an $800,000 property, you would pay approximately $30,529 in stamp duty.
However, first home buyers in NSW can access generous concessions that dramatically reduce or completely eliminate this cost. This is why understanding your eligibility is crucial before you purchase. Use our property deposit calculator to see how stamp duty savings affect your overall upfront costs.
NSW First Home Buyers Assistance Scheme overview
The NSW government provides stamp duty relief through the First Home Buyers Assistance Scheme, which offers two levels of support. A full stamp duty exemption applies to properties up to $800,000, meaning you pay $0 in stamp duty. For properties between $800,001 and $1,000,000, concessional (reduced) rates apply, with savings that gradually phase out as the price approaches $1,000,000.
Whether you are buying an established home, a new build, or purchasing through private treaty, auction, or off the plan, these concessions apply across all of NSW. Your stamp duty savings are confirmed during the pre-approval and settlement process, and your lender's bank valuation of the property determines the final duty calculation.
Eligibility requirements for stamp duty concessions
To qualify for stamp duty savings as a first home buyer in NSW, you must meet all of the following criteria.
First home buyer status
You must never have owned property anywhere in Australia before. Your spouse or partner must also never have owned property in Australia. If you have inherited property, you must have disposed of it before purchasing. Previous ownership of property anywhere in the world may also affect your eligibility, so seek specialist advice if this applies to you.
Citizenship or residency
You must be an Australian citizen or permanent resident to qualify for the stamp duty concession.
Occupancy requirement
You must intend to occupy the property as your principal place of residence. You are required to move in within 12 months of settlement and live there for at least 12 continuous months. The property cannot be purchased as an investment.
Property value thresholds
For existing and new homes, the purchase price must not exceed $800,000 for the full exemption, or $1,000,000 for the concessional rate. For vacant land, the purchase price must not exceed $350,000 for full exemption, or $450,000 for the concessional rate.
Critical: If you are buying with a partner, both of you must meet all eligibility criteria. If one person has previously owned property, neither of you will qualify for the concession. This is a strict requirement that cannot be waived.
How much you will save: stamp duty calculations
The savings can be substantial. A first home buyer purchasing an $800,000 property saves $30,529 in stamp duty compared to regular buyers. Even properties in the concessional range can save you thousands.
Full exemption (properties up to $800,000)
If you are purchasing a property valued at $800,000 or less, you will pay $0 in stamp duty. Here is what that means in real savings:
| Purchase Price | Regular Stamp Duty | First Home Buyer Pays | Your Savings |
|---|---|---|---|
| $500,000 | $17,029 | $0 | $17,029 |
| $600,000 | $21,529 | $0 | $21,529 |
| $700,000 | $26,029 | $0 | $26,029 |
| $800,000 | $30,529 | $0 | $30,529 |
Concessional rates (properties $800,001 to $1,000,000)
Properties between $800,001 and $1,000,000 attract reduced stamp duty rates. The concession gradually phases out as the price increases:
| Purchase Price | Regular Stamp Duty | Concessional Rate | Your Savings |
|---|---|---|---|
| $850,000 | $32,779 | $9,882 | $22,897 |
| $900,000 | $35,029 | $19,765 | $15,264 |
| $950,000 | $37,279 | $29,647 | $7,632 |
| $1,000,000 | $39,529 | $39,529 | $0 |
If the property exceeds $1,000,000, you will pay full stamp duty rates with no concession available. This is why staying within the concession thresholds is strategically important when choosing the right property. Consider exploring different property types such as strata apartments or freestanding houses in suburbs where prices fall within these thresholds, and use our location, condition and vibes guide to find areas that offer good value.
Vacant land concessions
If you are purchasing vacant land to build your first home, the full exemption applies for land up to $350,000 and concessional rates apply for land between $350,001 and $450,000. The home you build must be your principal place of residence to maintain the concession.
Combining stamp duty savings with other benefits
The real power comes from combining stamp duty concessions with other first home buyer benefits. These programmes work together to provide substantial financial support that can change what is possible for you as a buyer.
Example: maximising benefits on a $750,000 new home
Here is how multiple benefits stack when purchasing a new home valued at $750,000. The stamp duty exemption saves you $28,240. The First Home Owner Grant adds $10,000 for a new property. The Home Guarantee Scheme means you only need a 5% deposit of $37,500 instead of 20% ($150,000). And by avoiding Lenders Mortgage Insurance through the scheme, you save approximately $15,000 to $20,000 more. The total benefits package comes to $70,000+ in savings and support.
You can further accelerate your deposit by using the First Home Super Saver Scheme to save through your superannuation with tax advantages, or explore the Help to Buy (Shared Equity) Scheme where the NSW government co-purchases with you using just a 2% deposit. Make sure you also understand the genuine savings requirements that most lenders expect. Read about the benefits and risks of these schemes to make an informed decision. Our deposit options guide covers every pathway available to first home buyers, and our property purchase and valuation guide explains how the buying process works from start to finish.
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How to apply for stamp duty concessions
Applying for the stamp duty concession is straightforward and typically handled by your solicitor or conveyancer. However, you are responsible for ensuring the application is submitted before settlement.
Step 1: Complete the application form
Your solicitor or conveyancer typically handles this on your behalf. The application form is submitted to Revenue NSW and must be completed before or at settlement.
Step 2: Provide supporting documents
You will need to gather and provide proof of identity (driver's licence or passport), the contract of sale for your property purchase, a first home buyer declaration confirming you have never owned property before, evidence of Australian citizenship or permanent residency, and an occupancy declaration stating your intent to live in the property as your principal place of residence.
Step 3: Revenue NSW assessment
Revenue NSW reviews your application and usually approves within 7 to 14 days. Approval must be obtained before settlement occurs, which is why it is critical to start the process early in your home buying journey.
Step 4: Settlement
If approved, you pay reduced or $0 stamp duty at settlement. Keep all documentation for your records and remember your occupancy obligations are legally binding. You must move into the property within 12 months and live there for at least 12 continuous months. If you fail to meet occupancy requirements, Revenue NSW can demand the stamp duty concession be repaid plus penalties.
Common scenarios and special situations
Different circumstances require different approaches to stamp duty concessions. Here are the most common situations first home buyers face.
Buying with a partner
When purchasing jointly, both parties must be first home buyers who have never owned property in Australia. Both must intend to occupy the property as their principal place of residence and meet citizenship or residency requirements. This is a strict requirement with no exceptions.
Building on purchased land
If you buy land to build a home, the stamp duty concession applies to the land purchase (up to $450,000). The completed home must be your principal place of residence. You may also qualify for the First Home Owner Grant ($10,000), creating substantial combined savings.
Off-the-plan purchases
When buying off the plan, stamp duty is calculated on the contract price at exchange, not on the higher value at completion if the market rises during construction. You must still meet all first home buyer criteria, and the occupancy deadline starts from settlement (completion), not exchange.
Inherited property
If you have inherited property, you must have disposed of it before purchasing to claim first home buyer status. You cannot retain inherited property and claim the concession. Speak to Revenue NSW about your specific situation for tailored advice.
What happens if you do not meet requirements?
If you fail to meet the occupancy or other requirements after receiving the concession, the consequences are serious. Revenue NSW will demand the full concession amount back, additional penalty fees and interest charges will apply, and there are very limited grounds for waiver.
Acceptable reasons for not occupying might include death, serious illness, natural disaster making the property uninhabitable, or job relocation outside your control. Even in these cases, you must apply to Revenue NSW for consideration. It is not automatic.
Frequently asked questions
Can I claim the stamp duty concession if I am buying an investment property?
No. The stamp duty concession is only available for properties you intend to occupy as your principal place of residence. You must move in within 12 months and live there for at least 12 continuous months. Investment properties do not qualify.
What if I owned property overseas but never in Australia?
Previous property ownership overseas does not automatically disqualify you from first home buyer concessions in NSW. However, individual circumstances vary, so it is best to contact Revenue NSW to assess your specific case.
Can I claim both the stamp duty concession and the First Home Owner Grant?
Yes. If you are purchasing a new home, you can potentially receive both the stamp duty concession (saving up to $30,529) and the First Home Owner Grant ($10,000). You can also combine these with the Home Guarantee Scheme and the First Home Super Saver Scheme for maximum benefit.
What happens if the property value is slightly over $800,000?
If the property value is between $800,001 and $1,000,000, you will qualify for concessional (reduced) stamp duty rates rather than full exemption. The savings gradually phase out as the price increases, with some savings still available up to $1,000,000. At $850,000 you save $22,897, while at $950,000 you save $7,632.
Do I need to stay in the property forever to keep the concession?
No. You must move in within 12 months of settlement and live there for at least 12 continuous months. After satisfying these requirements, you can sell, rent out, or move from the property without needing to repay the stamp duty concession.
Can I buy with someone who has owned property before?
No. If you are purchasing jointly with your spouse or de facto partner, all buyers must be first home buyers who have never owned property in Australia. This is a strict requirement that applies regardless of how the ownership is structured between partners.
Is the concession automatic or do I need to apply?
You must apply for the stamp duty concession through Revenue NSW. Your solicitor or conveyancer typically handles this application, but you are responsible for ensuring it is submitted before settlement. The concession is not automatically applied.
What if I cannot move in within 12 months due to renovations?
The 12-month occupancy deadline is strict. If major renovations will prevent you from moving in on time, discuss this with Revenue NSW before purchasing. In some circumstances, extensions may be granted, but this is not guaranteed. Do not assume you will receive an extension without prior approval.
Take the next step
Understanding stamp duty concessions is just one part of your first home buyer journey. Explore our budgeting guide to understand all upfront costs, and use our property deposit calculator, home equity calculator, and mortgage repayment calculator to plan with confidence.
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Related resources for first home buyers
Continue building your knowledge with our essential first home buyer tips covering six key areas, our NSW First Home Owner Grant guide for the $10,000 government grant on new homes, our Home Guarantee Scheme guide for 5% deposit purchases with no LMI, our Help to Buy (Shared Equity) Scheme guide for 2% deposit purchases, and our Loan to Value Ratio guide to understand how your deposit affects your loan terms and interest rates.
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