Stamp duty concession for first home buyers in NSW
Stamp duty is one of the largest upfront costs when buying your first home in NSW – but as a first home buyer, you may be eligible for significant savings or even complete exemption. Understanding the NSW First Home Buyers Assistance Scheme can save you tens of thousands of dollars.
Quick overview: first home buyers in NSW can access generous stamp duty concessions that dramatically reduce or completely eliminate this cost. Properties up to $800,000 qualify for full exemption, whilst properties between $800,001 and $1,000,000 attract reduced rates. Understanding your eligibility can unlock substantial savings.
What is stamp duty?
Definition: stamp duty (officially called transfer duty) is a state government tax you pay when purchasing property in NSW. It's calculated based on the property's purchase price or market value, whichever is higher. For first home buyers, significant concessions are available.
Stamp duty is a state government tax you pay when purchasing property. In NSW, it's calculated based on the property's purchase price or market value, whichever is higher. For regular buyers, stamp duty is a substantial cost:
- $500,000 property: approximately $17,029 in stamp duty
- $750,000 property: approximately $28,279 in stamp duty
- $800,000 property: 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.
NSW First Home Buyers Assistance Scheme overview
Scheme structure: the NSW government provides two levels of stamp duty support through the First Home Buyers Assistance Scheme. Most eligible first home buyers qualify for full exemption on properties up to $800,000, with concessional rates available for higher-priced properties up to $1,000,000.
The NSW government provides stamp duty relief through the First Home Buyers Assistance Scheme, which offers two levels of support:
- Full stamp duty exemption: properties up to $800,000 – pay $0 stamp duty
- Concessional stamp duty rates: properties between $800,000 and $1,000,000 – pay reduced stamp duty rates
Understanding these two tiers helps you plan your property purchase and maximise your savings. Whether you're buying in Sydney, the Central Coast, or anywhere across NSW, these concessions apply.
Eligibility requirements for stamp duty concessions
Must meet all criteria: to qualify for stamp duty savings as a first home buyer in NSW, you must meet all of these criteria: never owned property in Australia, be an Australian citizen or permanent resident, intend to occupy the property as your principal place of residence, and stay within the property value thresholds. If you're buying with a partner, both of you must meet these requirements.
To qualify for stamp duty savings as a first home buyer in NSW, you must meet ALL of these criteria:
First home buyer status
- Never owned property in Australia: you have never owned property anywhere in Australia before
- Spouse/partner requirement: your spouse or partner has never owned property in Australia
- Inherited property: if you've inherited property, you must have disposed of it before purchasing
- International property: previous ownership anywhere in the world may disqualify you – seek specialist advice
Citizenship or residency
- Australian citizen, or
- Permanent resident
Occupancy requirement
- Principal place of residence: you must intend to occupy the property as your principal place of residence
- Move-in deadline: must move in within 12 months of settlement
- Continuous occupancy: must live there for at least 12 continuous months
- Not for investment: cannot purchase as an investment property
Property value thresholds
- Existing homes: purchase price must not exceed $800,000 (full exemption) or $1,000,000 (concession)
- New homes: purchase price must not exceed $800,000 (full exemption) or $1,000,000 (concession)
- Vacant land: purchase price must not exceed $350,000 (full exemption) or $450,000 (concession)
Critical: if you're 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'll save: stamp duty calculations
Savings potential: 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 ($800,001–$1,000,000) can save thousands.
Full exemption (properties up to $800,000)
If you're purchasing a property valued at $800,000 or less, you'll pay $0 in stamp duty. Here's 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 $800,000 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'll pay full stamp duty rates with no concession available. This is why staying within the concession thresholds is strategically important.
Vacant land concessions
If you're purchasing vacant land to build your first home:
- Full exemption: land up to $350,000
- Concessional rates: land between $350,001 and $450,000
- Occupancy requirement: the home you build must be your principal place of residence
Combining stamp duty savings with other benefits
Benefits stacking: the real power comes from combining stamp duty concessions with other first home buyer benefits like the First Home Owner Grant, Home Guarantee Scheme, and Shared Equity Scheme. These programmes work together to provide substantial financial support.
Example: maximising benefits on a $750,000 new home
Here's how multiple benefits stack when purchasing a new home valued at $750,000:
- Stamp duty saved: $28,240 (full exemption)
- First Home Owner Grant: +$10,000 (available for new properties)
- Home Guarantee Scheme: 5% deposit ($37,500) instead of 20% ($150,000)
- LMI saved: approximately $15,000–$20,000 (avoided through scheme)
- Total benefits package: $70,000+ in savings and support
By understanding how these benefits work together, you can dramatically improve your financial position when entering the property market. Contact a mortgage adviser to explore which combinations apply to your situation.
Learn more about combining benefits with these related guides:
- NSW First Home Owner Grant ($10,000 for new homes)
- Home Guarantee Scheme (5% deposit, no LMI)
- Shared Equity Scheme (2% deposit option)
How to apply for stamp duty concessions
Application process: applying for the stamp duty concession is straightforward and typically handled by your solicitor or conveyancer. However, you're responsible for ensuring the application is submitted before settlement. The approval process usually takes 7–14 days.
Step 1: Complete the application form
Your solicitor or conveyancer typically handles this. The application form is submitted to Revenue NSW and must be completed before or at settlement.
Step 2: Provide supporting documents
You'll need to gather and provide:
- Proof of identity: driver's licence or passport
- Contract of sale: your property purchase agreement
- First home buyer declaration: statement that you've never owned property before
- Residency evidence: proof of Australian citizenship or permanent residency
- Occupancy declaration: statement of intent to occupy as principal place of residence
Step 3: Revenue NSW assessment
Revenue NSW reviews your application and usually approves within 7–14 days. Approval must be obtained before settlement occurs. This is why it's critical to start the process early.
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 – they're legally binding.
Critical reminder: 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
Special circumstances: different circumstances require different approaches to stamp duty concessions. Whether you're buying with a partner, building on land, purchasing off-the-plan, or dealing with inherited property, understanding your specific situation is essential.
Buying with a partner
When purchasing jointly, both parties must be first home buyers. If one person has owned property before, neither of you qualifies for the concession. Both must intend to occupy as principal place of residence and meet citizenship/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). You must still meet all first home buyer criteria, and the occupancy deadline starts from settlement (completion), not exchange.
Inherited property
If you've 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.
Ready to explore your options?
Understanding your stamp duty eligibility is crucial, but navigating applications and combining benefits requires expert guidance. Let our mortgage advisers help you maximise your first home buyer benefits.
What happens if you don't meet requirements?
Consequences: failing to meet occupancy or other requirements after receiving the concession has serious consequences. Revenue NSW will demand full repayment of the concession plus penalties and interest charges. There are very limited grounds for waiver.
If you fail to meet the occupancy or other requirements after receiving the concession, the consequences are serious:
- Full repayment required: Revenue NSW will demand the concession amount back
- Penalties apply: additional fees and interest charges
- No exceptions: very limited grounds for waiver
Acceptable reasons for not occupying might include death, serious illness, natural disaster making property uninhabitable, or job relocation outside your control. Even in these cases, you must apply to Revenue NSW for consideration – it's not automatic.
Frequently asked questions
Can I claim the stamp duty concession if I'm 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 doesn't disqualify you from first home buyer concessions in NSW. If you're concerned about your specific situation, contact Revenue NSW to assess your case and seek specific advice.
Can I claim both stamp duty concession and First Home Owner Grant?
Yes! If you're 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). This provides substantial combined savings for first home buyers purchasing new properties.
What happens if the property value is slightly over $800,000?
If the property value is between $800,001 and $1,000,000, you'll qualify for concessional (reduced) stamp duty rates rather than full exemption. The savings gradually phase out as the price increases, with some savings available up to $1 million.
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're purchasing jointly with your spouse or de facto partner, all buyers must be first home buyers. However, if you're buying with friends or family, you may still qualify if you're purchasing at least half of the property in a shared equity arrangement.
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're responsible for ensuring it's submitted before settlement. The concession is not automatically applied.
What if I can't move in within 12 months due to renovations?
The 12-month occupancy deadline is strict. If major renovations will prevent you from moving in, discuss this with Revenue NSW before purchasing. In some circumstances, extensions may be granted, but this is not guaranteed. Don't assume you'll get an extension without prior approval.
Take the next step
Understanding stamp duty concessions is just one part of your first home buyer journey. Let our experienced mortgage advisers help you navigate eligibility, maximise all available benefits, and plan your purchase confidently.
📧 Email: hello@buyvest.com.au
Related resources for first home buyers
Explore these related articles:
- Buying your first home? 6 key things to know – learn the essential steps to navigate the property purchase process confidently
- NSW First Home Owner Grant guide – understand how to access the $10,000 government grant for new homes
- Home Guarantee Scheme (5% deposit) – discover how to purchase with minimal deposit and avoid LMI
- Shared Equity Scheme for NSW – learn how the government scheme allows 2% deposit with shared ownership
- Budgeting guide for first home buyers – master financial planning to maximise your borrowing capacity
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