NSW Stamp Duty Schemes
First Home Buyer Choice Program
The First Home Buyer Choice Program has been closed to new applications on 1 July 2023. This means that paying stamp duty annually is no longer an option.
First Home Buyer Assistance Scheme
On the other hand, the NSW Government has increased the thresholds for First Home Buyer Assistance Scheme (FHBAS) for eligible first home buyers.
| Property Value | Exemption | |
| New & Existing Homes | Value is equal to or less than $800,000 | Exempt You can apply for a full exemption from transfer duty. |
| Value is above $800,000 and less than $1 Million | Concessional rate You can apply for a concessional transfer duty rate. | |
| Vacant Land | Value is equal to or less than $350,000 | Exempt You can apply for a full exemption from transfer duty. |
| Value is above $350,000 and less than $450,000 | Concessional rate You can apply for a concessional transfer duty rate. |
Table 1: FHBAS Thresholds (Reference: NSW Revenue)
Impacts of the NSW Stamp Duty Reform on First Home Buyers
- The changes in new scheme means that there will be a greater number of first home buyers who can access and benefit from the scheme.
- The increase in thresholds under the new stamp duty scheme will benefit eligible first home purchasers in paying no tax or paying tax at a significantly lower amount.
For example, an eligible first home buyer may save up to $31,090 when purchase a property at $800,000 under such new changes (NSW Revenue – New FHBAS).
- The new scheme also extends the requirement to live in the home from 6 months to 12 continuous months. This change intends to improve the integrity of first home buyers when undertaking the scheme.
Eligibility (NSW Revenue – Eligibility)
To apply for FHBAS, the purchaser must be determined to be eligible for the scheme.
Below are some of the criteria to determine eligible first home buyers:
- The purchase must be for a new or existing home, or vacant land in NSW.
- The property value must be within the threshold amounts.
- You must be an individual, (not a company or trust).
- You must be over 18.
- For new or existing homes, you must meet the requirement for living in the property (see above).
Disclaimer: This publication is intended to provide commentary and general information. This publication should not be relied upon as legal advice. You should seek formal legal advice on matters of interest arising from this publication such as applying for the program which may require information relating to the exchanged contracts, lodging applicable forms, and proof of identity by the Solicitors.
