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Buying your first home in New South Wales is a big milestone, but there’s plenty of hidden costs of buying a house, and these can add up quickly. One of the largest expenses is stamp duty, a tax paid on property purchases. Thankfully, the NSW Government offers a stamp duty exemption or concession to help eligible first-home buyers reduce these costs.
Get a foot in the market sooner with first home buyer stamp duty exemption. Here’s how.
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What Is Stamp Duty Exemption in NSW?
The stamp duty exemption in NSW is a government initiative that helps eligible first-home buyers avoid paying stamp duty when purchasing a property under a certain price threshold. This can save buyers tens of thousands of dollars, making it easier to get onto the property ladder.
To estimate your potential savings, use our NSW stamp duty calculator.
Do First Home Buyers Pay Stamp Duty in NSW?
The good news is that many first-home buyers don’t have to pay stamp duty at all. Under the first home buyer stamp duty exemption, eligible buyers purchasing a property under the price threshold can avoid paying this tax entirely.
If your property is above the exemption limit but below the concession cap, you may still qualify for a discount.
Who Is Eligible for Stamp Duty Exemption in NSW?
To qualify for the exemption, you must be:
- An Australian citizen or permanent resident
- Buying your first property in Australia
- At least 18 years old
- Purchasing a property below the set price threshold
- Buying a new or existing home valued up to $800,000
- Buying a home between $800,001 and $1 million (concessional rate)
- Buying vacant land valued up to $350,000 (full exemption) or up to $450,000
- Intending to live in the property for at least six months within the first year of purchase
Why It Matters for First-Home Buyers
Saving on stamp duty can make a big difference when budgeting for a property. For example, on a $700,000 home in Sydney, stamp duty could be more than $26,000. This is money that could go towards your deposit or moving costs.
How to Apply For the Exemption
- Confirm your eligibility using your state revenue office or an online tool
- Prepare your documents: You’ll need ID, contract of sale, and declaration forms
Many buyers choose to work with a mortgage advisor who can guide them through the process, confirm eligibility, and ensure the application is lodged correctly.
It’s also worth checking whether you qualify for other government support, such as the First Home Owners Grant, which can be combined with stamp duty savings to make your first purchase more affordable.
Your Next Steps to Secure the Stamp Duty Exemption
By understanding who is eligible for stamp duty exemption NSW, and combining it with other grants, you can get into your first home sooner and with fewer upfront expenses. Working with an experienced mortgage broker in Sydney can simplify the process and help you structure your home loan to suit your long-term goals.
For personalised advice, connect with a mortgage broker at Inovayt today and take the first step towards owning your own home.
FAQs about First Home Owners Grant in NSW
Do first-home buyers pay stamp duty in NSW?
Many first-home buyers don’t pay stamp duty in NSW if their property is under the exemption price cap. If the property value is slightly higher, they may still receive a concession. This support aims to make buying a first home more achievable for eligible buyers across New South Wales.
Who is eligible for stamp duty exemption in NSW?
To qualify, buyers must be Australian citizens or permanent residents, at least 18 years old, and purchasing their first property in Australia. The home must fall under the set price threshold, and buyers must live in the property for at least six months within the first year of ownership.
How do I apply for the first home buyer stamp duty exemption?
Applications are usually lodged during the property purchase process, often with the help of your solicitor, conveyancer, or lender. Many buyers choose to work with a mortgage advisor or mortgage broker in Sydney who can confirm eligibility, prepare paperwork, and ensure everything is submitted correctly and on time.
Can the stamp duty exemption be combined with other grants?
Yes. The first home buyer stamp duty exemption can often be used alongside other government incentives, such as the First Home Owners Grant or shared equity schemes. Combining these benefits can significantly reduce upfront costs and help first-home buyers get into the property market sooner with a smaller deposit.
