Last Updated: 15th November, 2022

The New South Wales (NSW) government has decided to make temporary changes to stamp duty exemption for first home buyers A stamp duty is a government tax that is paid for certain transactions like buying a property.  From 1 August 2020, the NSW government increased the threshold for stamp duty exemption for first home buyers from $650,000 to $800,000 for newly built homes and from $350,000 to $400,000 for vacant land.   The change is predicted to provide relief to 6,000 first home buyers who want to enter the property market in NSW.

What is the eligibility criteria for the NSW stamp duty change?

  • You purchased a property from 1 August 2020. 
  • You must be a first home buyer. 
  • Only applicable for newly built homes or vacant land with intent to build. 
  • You can either be an Australian citizen or permanent resident. 
  • You must be 18 years old and above. 
  • The change does not apply to existing dwellings. 

How much will I save?

The table shows the amount of stamp duty exemption and concession for first home buyers in NSW from 1 August 2020:
Type of property Property value Existing stamp duty New stamp duty Savings
New home $650,000 $0 $0 Exempted
New home $700,000 $10,445 $0 $10,445
New home $800,000 $31,335 $0 $31,335
New home $900,000 $35,835 $20,168 $15,668
Existing home $650,000 $0 $0 Exempted
Existing home $800,000 $31,335 $31,335 $0
Vacant land $350,000 $0 $0 Exempted
Vacant land $400,000 $7,793 $0 $7,793
You can use our stamp duty calculator to find out how much stamp duty you will pay.

What is considered a newly built home?

To be considered a new home: 
  • This is the first time the home is sold.
  • The property was vacant before you moved in.

Is this permanent?

No, it is only available for 12 months starting from 1 August 2020.

NSW’s Stamp Duty Reform Bill Passed

Eligible first-home buyers who sign a purchase contract on or after 16 January 2023 will have the option of choosing between the upfront stamp tax and the annual tax. Those who signed from 12 November 2022 will have to pay the upfront stamp duty within their designated timeframe, but they will be able to apply for a refund from 16 January 2023, after which they will have to pay the annual tax. The existing First Home Owner Grant and stamp duty exemptions and concessions will still be in place.

What other government grants are available in NSW?

The following grants are available for first home buyers in NSW: 

Are you buying your first home in NSW?

Our extensive first home buying guide will help you on your journey to home ownership with information on tips to save for a deposit and applying for a home loan.  Our mortgage brokers have helped many first home buyers realise their dreams of home ownership. Call us on 1300 889 743 or fill in our free assessment form.