First home buyers in NSW: duty exemption, grants and eligibility
Key facts
| Fact | Detail | Source |
|---|---|---|
| Home: no transfer duty | Valued at $800,000 or less | First Home Buyers Assistance Scheme |
| Home: concessional rate | Valued above $800,000 and below $1,000,000 | First Home Buyers Assistance Scheme |
| Vacant land | No duty at $350,000 or less; concessional rate above $350,000 and below $450,000 | First Home Buyers Assistance Scheme |
| Residence rule (contracts from 1 July 2023) | Home: one buyer moves in within 12 months of settlement and lives there as their principal place of residence for at least 12 continuous months. Vacant land: you must intend to build a home to live in | Eligibility for the First Home Buyers Assistance Scheme |
| First Home Owner (New Homes) Grant | $10,000 for a first new home valued at $600,000 or less, or land plus a building contract valued at $750,000 or less | First Home Owner (New Homes) Grant |
| First Home Buyer Choice | Closed on 1 July 2023 | First Home Buyer Choice |
How much stamp duty do first home buyers pay in NSW?
Eligible first home buyers pay no transfer duty on a new or existing home valued at $800,000 or less. Above $800,000 and below $1,000,000, they pay a concessional (reduced) rate instead of the full rate.
This is the First Home Buyers Assistance Scheme, run by Revenue NSW. These thresholds have applied since 1 July 2023 and remain current for 2026-27.
Revenue NSW works out the concessional amount, so use its First Home Buyers Assistance calculator for your figure rather than estimating it yourself.
| Property | No transfer duty | Concessional rate | No concession |
|---|---|---|---|
| New or existing home | $800,000 or less | Above $800,000 and below $1,000,000 | $1,000,000 or more |
| Vacant land to build a first home on | $350,000 or less | Above $350,000 and below $450,000 | $450,000 or more |
Sources: First Home Buyers Assistance Scheme; First Home Buyers Assistance calculator
Who is eligible for the First Home Buyers Assistance Scheme?
You must meet every eligibility rule. Revenue NSW publishes the full criteria, and the main rules are:
- You buy as an individual, not through a company or trust.
- You are aged 18 or over.
- At least one buyer is an Australian citizen or permanent resident.
- Neither you nor your spouse or partner has owned residential property in Australia before.
- Neither you nor your spouse or partner has received this concession before.
- For a home bought under a contract dated on or after 1 July 2023, one buyer must move in within 12 months of settlement and live there as their principal place of residence for at least 12 continuous months. For vacant land, you must intend to build a home on it that one buyer will live in as their principal place of residence.
Sources: Eligibility for the First Home Buyers Assistance Scheme
Can I get the First Home Owner Grant in NSW?
Only for a new home. The NSW First Home Owner (New Homes) Grant is $10,000 and is available for a first new home only, not an existing one.
The price must not be more than $600,000 for a newly built home, or $750,000 combined for vacant land plus a building contract. For contracts from 1 July 2023, the home must be occupied within 12 months, for at least 12 continuous months.
Sources: First Home Owner (New Homes) Grant
What if I am buying land to build my first home?
Lower thresholds apply to vacant land. There is no transfer duty on vacant land valued at $350,000 or less, and a concessional rate above $350,000 and below $450,000, if you are buying it to build your first home.
If you then build, the First Home Owner (New Homes) Grant may also be available where the land and the building contract together come to $750,000 or less. If you are buying land in a growth area such as Box Hill, Schofields or North Kellyville, check the land value, and the combined land and build cost, against these limits before relying on them.
Sources: First Home Buyers Assistance Scheme; First Home Owner (New Homes) Grant
What happened to First Home Buyer Choice?
It has closed. First Home Buyer Choice let buyers choose to pay an annual property tax instead of transfer duty. It ran from 16 January 2023 to 30 June 2023 and closed on 1 July 2023.
Buyers who opted in keep paying property tax while they own that property. New first home buyers use the First Home Buyers Assistance Scheme instead.
Sources: First Home Buyer Choice
What Australian Government schemes can help first home buyers?
The Australian Government's 5% Deposit Scheme (formerly the Home Guarantee Scheme) helps eligible first home buyers purchase with a 5% deposit without paying lenders mortgage insurance. According to the Australian Government, changes from 1 October 2025 removed the income caps and the limit on the number of places.
Property price caps apply and differ by location. Check the current caps and eligibility rules on firsthomebuyers.gov.au before you rely on the scheme.
The Australian Government also runs a Help to Buy shared equity scheme, which has its own income limits and price caps. Check firsthomebuyers.gov.au for the current rules.
Sources: Australian Government 5% Deposit Scheme; Australian Government 5% Deposit Scheme: property price caps; Australian Government Help to Buy Scheme
How much deposit do I pay when I exchange contracts?
A deposit of 10% of the price is usual on exchange, but a lower amount, such as 5%, can be agreed with the seller. Agree the amount before you sign.
If the seller agrees, a buyer at a private sale can pay 0.25% on exchange, with the balance (usually 9.75%) due before the cooling-off period ends. The deposit is held by a stakeholder, such as the agent, in a trust or controlled money account.
Sources: Making an offer on a property; Contracts and deposits when buying property in NSW
What if I buy my first home at auction?
There is no cooling-off period when you buy at auction: the successful bidder signs the contract and cannot cool off. The same applies if contracts are exchanged on auction day after the property is passed in.
To bid, you must register with the selling agent and show identification. If you plan to bid, for example in Castle Hill or Baulkham Hills, have the contract reviewed and your finance in place before auction day.
Sources: Buying property at an auction
What should a first home buyer do before and after exchange?
Work through these steps in order. The early ones protect you before you are bound by a contract.
- Get finance pre-approval – Know your borrowing limit and deposit before you make an offer or bid at auction.
- Check your eligibility – Confirm you meet the First Home Buyers Assistance Scheme rules. If the property's value is above $800,000 (or above $350,000 for vacant land), use Revenue NSW's calculator to estimate the concession.
- Have the contract reviewed before you sign – A solicitor or licensed conveyancer can check the contract, the attached documents and any special conditions before exchange.
- Arrange inspections – Building and pest inspections, and a strata inspection report for a strata property, are not compulsory in NSW but are recommended.
- Understand the cooling-off period – For a private sale of residential property you usually have 5 business days after exchange to cool off, ending at 5pm on the fifth business day (10 business days for an off-the-plan contract). Pulling out costs 0.25% of the purchase price. There is no cooling-off period if you buy at auction or if a section 66W certificate is given.
- Apply for the exemption or concession – Lodge the scheme's application form and proof of identity documents with your solicitor or conveyancer, as Revenue NSW directs, so the exemption or concession can be considered when your duty is assessed.
- Plan to move in – For a home bought under a contract dated on or after 1 July 2023, one buyer must move in within 12 months of settlement and live there for at least 12 continuous months. If you bought vacant land, check Revenue NSW's residence rules for building and moving in.
Sources: First Home Buyers Assistance Scheme; Contracts and deposits when buying property in NSW; Buying property at an auction; Pre-purchase inspection reports when buying a home; Eligibility for the First Home Buyers Assistance Scheme
How a conveyancing solicitor can help first home buyers
Baulkham Hills Conveyancing can review your contract before you exchange, explain the cooling-off period and the effect of a section 66W certificate, help with your First Home Buyers Assistance Scheme application and coordinate settlement. Send us the contract or call (02) 9000 1408 to talk about your purchase.
Frequently asked questions
Do first home buyers pay stamp duty in NSW?
Not on a home valued at $800,000 or less, if you are eligible under the First Home Buyers Assistance Scheme. Homes valued above $800,000 and below $1,000,000 attract a concessional rate, and homes valued at $1,000,000 or more pay the full general rates. Use Revenue NSW's First Home Buyers Assistance calculator for the concessional amount.
Can I get the first home buyer exemption if my partner has owned property?
Generally no. Neither the applicant nor their spouse or partner may have owned residential property in Australia before, or received the concession before. Revenue NSW publishes the full eligibility criteria, so check them carefully before you sign a contract.
How long do I have to live in the home to keep the exemption?
For contracts from 1 July 2023, to keep the NSW First Home Buyers Assistance Scheme exemption or concession on a home, one buyer must move in within 12 months of settlement and live there as their principal place of residence for at least 12 continuous months. For vacant land, it is enough to intend to build a home there to live in. A similar 12-month occupation rule applies to the First Home Owner (New Homes) Grant.
Is the First Home Owner Grant available for existing homes in NSW?
No. The NSW First Home Owner (New Homes) Grant of $10,000 is for a first new home only. The price cap is $600,000 for a newly built home, or $750,000 combined for vacant land plus a building contract. Existing homes may still qualify for the transfer duty exemption or concession.
Does First Home Buyer Choice still exist?
No. First Home Buyer Choice, which let buyers pay an annual property tax instead of transfer duty, closed on 1 July 2023. Buyers who opted in before then keep paying property tax while they own that property. New first home buyers use the First Home Buyers Assistance Scheme.
What is the 5% Deposit Scheme?
It is an Australian Government scheme, formerly the Home Guarantee Scheme, that helps eligible first home buyers purchase with a 5% deposit without lenders mortgage insurance. The Australian Government says changes from 1 October 2025 removed income caps and limits on places. Property price caps apply, so check the current caps on firsthomebuyers.gov.au.
How do I apply for the first home buyer duty exemption?
After exchange, lodge Revenue NSW's First Home Buyers Assistance Scheme application form and proof of identity documents with your solicitor or conveyancer, so it can be considered when your duty is assessed. Any duty payable is due by the earlier of settlement or 3 months after the contract date.
Sources
- First Home Buyers Assistance Scheme – Revenue NSW
- First Home Buyers Assistance calculator – Revenue NSW
- Eligibility for the First Home Buyers Assistance Scheme – Revenue NSW
- First Home Owner (New Homes) Grant – Revenue NSW
- First Home Buyer Choice – Revenue NSW
- Who pays transfer duty and when – Revenue NSW
- Australian Government 5% Deposit Scheme – Australian Government (Housing Australia)
- Australian Government 5% Deposit Scheme: property price caps – Australian Government (Housing Australia)
- Australian Government Help to Buy Scheme – Australian Government (Housing Australia)
- Contracts and deposits when buying property in NSW – NSW Government (NSW Fair Trading)
- Making an offer on a property – NSW Government (NSW Fair Trading)
- Buying property at an auction – NSW Government (NSW Fair Trading)
- Pre-purchase inspection reports when buying a home – NSW Government (NSW Fair Trading)
Related pages
Related services
Related guides
- NSW stamp duty (transfer duty): 2026-27 rates, examples and when it is due
- The cooling-off period in NSW: how it works for property buyers
- The conveyancing process in NSW, step by step
- Buying property at auction in NSW: what to check before you bid
- Buying off the plan in NSW: your rights before and after you sign
Local pages
This guide is general information about New South Wales law as at 4 October 2026, not legal advice for your circumstances. Laws, thresholds and government fees change; check the official sources listed and contact us for advice about your matter.
Talk to us about your matter: call (02) 9000 1408, email info@baulkhamhillsconveyancing.com.au or request a quote online.