Stamp Duty Exemption for First Home Buyer in NSW
As of July 2023, the NSW government has made changes to the First Home Buyers Assistance Scheme, that is, If you are purchasing a new or existing property worth up to $800,000 as of 1 July 2023, you will be fully exempt from transfer duty; likewise, residences worth more than $800,000 but less than $1,000,000 may be eligible for a concessional rate.
You may be eligible for an exemption for land up to $350,000 and a concessional rate for land worth over $350,000 but less than $450,000 if you’re buying unoccupied land with the intention of building a house on it.
What is the First Home Buyers Assistance Scheme?
f you buy your home in NSW for the first time, the First Home Buyers Assistance Scheme may be qualified to you, for receiving a full or partial exemption of transfer duty.
Before 1 July 2023, the first home buyer in NSW may receive a full exemption on transfer duty for the property value equal to or less than $650,000 and a concession rate for the property value between $650,000 and $800,000. After the new stamp duty policy released on 1 July 2023, the first home buyer in NSW can receive a full exemption on transfer duty for the property equal to or less than $800,000 and a concession rate for the property value between $800,000 and $1 million.
Who is eligible for this stamp duty exemption?
Stamp duty is a tax charged by a state or territory government on particular documents or transactions. These include vehicle purchases, insurance policies, leasehold mortgages, and real estate sales. The amount of stamp duty is generally charged uniformly or determined according to the transaction amount. In real estate transactions, stamp duty is paid by the buyer.
To be eligible for the First Home Buyers Assistance Scheme, you need to meet the following criteria:
- the purchase must be for a new or existing home or vacant land in NSW
- the property value must be within the threshold amounts
- the transfer must be for the whole property
- you must be an individual, (not a company or trust*)
- you must be over 18*
- you and your spouse or partner, must never have owned or co-owned residential property in Australia
- you and your spouse or partner, must never have previously received an exemption or concession under the scheme
- at least one of the first home buyers must be an Australian citizen or permanent resident
- for new or existing homes, you must meet the requirements for living in the property1.
*This requirement may be waived upon application. Contact Revenue NSW for more information.
What are the requirements for living in the property:?
Contracts exchanged on or after 1 July 2023:
You or one of the other eligible first-home buyers must:
- move into the home within 12 months after settlement, and
- live in the property as your principal place of residence for at least 12 continuous months.
Contracts exchanged between 1 July 2017 and 30 June 2023 (inclusive)
You or one of the other eligible first-home buyers must:
- move into the home within 12 months after settlement, and
- live in the property as your principal place of residence for at least 6 continuous months.
How is Stamp Duty calculated in NSW?
The stamp duty is calculated based on the value of the property. Please see examples 1 and 2.
Example 1：
John Smith purchased a residential property in NSW for the first time. The settlement date on the contract is 10 July 2023, and he meets all requirements of the First Home Buyers Assistance Scheme. The property value is $850,000, and the new stamp duty with First Home Buyers Assistance Scheme will be $9,934.
Example 2：
Will Green purchased a residential property in NSW for the first time. The settlement date on the contract is 2 July 2023, and he meets all requirements of the First Home Buyers Assistance Scheme. The property value is $780,000, and the new stamp duty with First Home Buyers Assistance Scheme will be $0.
Property Value and thresholds
| Purchase Price | Standard Stamp Duty | Stamp Duty with FHBAS before 1 July 2023 | Stamp Duty with FHBAS after 1 July 2023 |
| $650,000 | $23,985 | N/A | N/A |
| $750,000 | $28,485 | $20,727 | N/A |
| $800,000 | $30,735 | $31,090 | N/A |
| $850,000 | $32,985 | $33,340 | $9,934 |
| $900,000 | $35,235 | $35,590 | $19,868 |
| $950,000 | $37,485 | $37,840 | $29,801 |
| $990,000 | $39,285 | $39,640 | $37,748 |
How to apply for the First Home Buyers Assistance Scheme (FHBAS)?
After you’ve exchanged contracts, you can apply for the FHBAS by downloading and completing the:
1. First Home Buyers Assistance Scheme Application form
For contracts exchanged on or after 1 July 2023, use:
First Home Buyers Assistance Scheme Application form ODA 066B
For contracts exchanged on or before 30 June 2023, use:
First Home Buyers Assistance Scheme Application form ODA 066A
2. Purchaser/Transferee Declaration form (individual) (PDF, 666 KB)
If you have any queries related to the stamp duty, please visit Contact Us | Revenue NSW.
Special Terms: Buying property with others who aren’t eligible
If you’re buying a home with others who aren’t eligible, you can still apply for the scheme if you and any other eligible buyers are purchasing at least half of the property. This is called a shared equity arrangement.
Shared equity doesn’t apply if your spouse is one of the ineligible buyers.
Ineligible buyers who form part of a shared equity agreement must pay a transfer duty on the share of the property they are acquiring.
Understanding Stamp Duty in different states in Australia
Stamp Duty in Victoria
Stamp Duty in Tasmania
Leo Wang is a client Services Manager, working closely with clients to meet their needs, offering strong accounting and tax support with a solution-focused approach.
