Stamp duty, officially called transfer duty, is often the second-largest cost of buying after the deposit. On an $800,000 home in NSW it's roughly $30,000. For eligible first home buyers, the NSW Government's First Home Buyers Assistance Scheme can remove it entirely.
Current thresholds
| Property type | Full exemption | Concession |
|---|---|---|
| New or existing home | Up to $800,000 | Over $800,000 and under $1,000,000 |
| Vacant land to build on | Up to $350,000 | Over $350,000 and under $450,000 |
The concession tapers: the closer the price gets to $1 million, the smaller the saving. At $1 million and above, full duty applies. Revenue NSW has a calculator to work out the exact amount.
Who's eligible
- At least one buyer is an Australian citizen or permanent resident.
- Neither you nor your spouse or partner has previously owned residential property in Australia or received this exemption before.
- You're buying in NSW and the value is within the thresholds.
- You move in within 12 months and live there continuously for at least six months.
The First Home Owner Grant
The $10,000 First Home Owner (New Homes) Grant is separate. It only applies to new homes: a newly built or substantially renovated home valued up to $600,000, or land plus a building contract with a combined value up to $750,000. It's most relevant to buyers in growth areas such as Marsden Park, Schofields and Box Hill, although many house-and-land packages there now exceed the limit.
Using it with the 5% Deposit Scheme
Stamp duty relief and the federal 5% Deposit Scheme can be used together. For a buyer at $780,000, that combination can mean a deposit of $39,000, no LMI and no stamp duty, leaving just legal and lender costs to cover.
Common mistakes
- Assuming a partner's previous overseas property doesn't matter. Check the rules for your circumstances with Revenue NSW.
- Moving out or renting the home too soon, which can mean repaying the duty with interest.
- Budgeting on the list price rather than the likely sale price in a competitive market.
Let's check what you're eligible for
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