NSW First Home Buyer?
Stamp out stamp duty to unlock your first home
Fast track your way to your first home with the NSW Government First Home Buyer Choice. If you’re an eligible first home buyer looking for a new or existing home up to $1.5 million, First Home Buyer Choice can lower the upfront costs of your purchase by paying a smaller annual property tax, instead of stamp duty.
The purchased property can be either owner occupied or purchased for investment. You must move into the new home within 12 months after purchase and live there for at least six continuous months. A first home buyer purchasing vacant land on which they intend to build a home for up to $800,000 will also have the choice of either stamp duty or an annual property tax.
| Stamp Duty vs Annual Property Tax | |
|---|---|
| Stamp duty is an upfront payment, paid at the time of buying your home. It is calculated as a percentage of the property’s purchase price or current market value (whichever is higher). Stamp duty rates vary depending on the value of the property. | Annual property tax payments are based on the land value of the purchased property. The property tax rates for 2022-2023 and 2023-2024 will be: $400 plus 0.3% of land value for properties whose owners live in them $1500 plus 1.1% of land value for investment properties. |
The following property purchase price bands apply:
Less than $650k
Existing full concession on stamp duty applies and hence property tax is not required as stamp duty is not payable.
Between $650k and $1.5m
Concessional rates of upfront stamp duty apply or eligible first home buyers can opt to pay the annual property tax available.
Above $1.5m
Only the normal stamp duty is available and customers cannot opt for the annual property tax.
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More information:
More information:
Credit criteria, fees and charges apply. The First Home Buyer Choice Act 2022 took effect on 16 January 2023.
First home buyers, complying with the current First Home Buyer Assistance Scheme eligibility criteria, and the purchase price thresholds (up to $1.5 million for properties with a home or $800,000 for vacant land), will be eligible to choose the property tax.
Applicants must be an individual who is over 18 years old and must not be a company or trust.
The first home buyer and their spouse or partner must never have owned or co-owned residential property in Australia and never received a first home buyer exemption or concession.
The first home buyer must move into the new home within 12 months after buying the property and live there for a continuous period of at least six months.
Please visit https://www.revenue.nsw.gov.au/grants-schemes/first-home-buyer/first-home-buyer-choice for more information.