Stamp Duty Exemptions for First Home Buyers in NSW
Buying your first home is exciting, but the upfront costs can catch you off guard. Beyond your deposit, stamp duty is often the single biggest expense first home buyers forget to budget for.
The good news? If you’re a first home buyer in NSW, you may be entitled to a stamp duty exemption under the First Home Buyers Assistance Scheme (FHBAS).
Here’s what the scheme covers, who qualifies, and the mistakes that can cost you thousands.
What Is the First Home Buyers Assistance Scheme?
The FHBAS is a NSW Government scheme that reduces or removes stamp duty (also called transfer duty) for eligible first home buyers purchasing a new home, an existing home, or vacant land on which they intend to build.
Unlike the First Home Owner Grant, which only applies to new homes, the FHBAS applies to both new and established properties — making it the scheme most first home buyers in the Kempsey and South West Rocks area will use.
How Much Can You Save?
Under the current thresholds:
- Full exemption — complete stamp duty expemtion payable on homes valued up to $800,000.
- Concessional rate — a reduced, sliding-scale rate applies to homes valued between $800,000 and $1,000,000.
- Vacant land — a full exemption applies up to $350,000, with a concessional rate available between $350,000 and $450,000.
💡 Tip: On an $800,000 home, this exemption can save you upwards of $30,000 — money that can go straight towards your deposit, moving costs, or a buffer for the unexpected.
Am I Eligible?
To qualify for the FHBAS, you generally need to meet the following criteria:
You’re buying a new or existing home, or vacant land, in NSW.
You (and any co-buyers or your spouse/partner) have never owned residential property in Australia, or received this concession before.
At least one buyer is an Australian citizen or permanent resident.
You move into the property within 12 months of settlement and live there for at least 12 continuous months.
Every buyer’s situation is different, and eligibility rules can be strict about who counts as a “first home buyer” — particularly if you’ve previously owned an investment property or inherited a share in one. This is exactly the kind of detail worth checking with your solicitor before you exchange contracts.
Buying Off the Plan? You May Be Able to Defer Duty
If you’re purchasing off the plan and intend to live in the property, you may be able to defer your stamp duty payment for up to 12 months after the contract date, or until settlement — whichever comes first. This can ease pressure on your cash flow while your new home is being built, but the deferral still needs to be applied for correctly and paid on time.
Common Mistakes That Cost First Home Buyers
We regularly see buyers lose out on savings they were entitled to, simply because of avoidable mistakes:
- Going even $1 over the $800,000 threshold — pushing the whole purchase into the concessional bracket and adding thousands in duty.
- Not meeting the 12-month residency requirement — which can mean repaying the exemption, plus penalties.
- Missing payment deadlines — stamp duty must generally be paid within 3 months of the contract date (up to 12 months for eligible off-the-plan purchases). Late payment attracts interest charges from Revenue NSW.
- Assuming eligibility without checking — previous property ownership, even a small or long-ago share, can disqualify a claim.
💡 Tip: Your conveyancer or solicitor should confirm your eligibility and handle the FHBAS application and payment as part of your settlement process — it shouldn’t be left to guesswork.
Why Get Advice Before You Buy
Stamp duty is one of the largest costs in any property purchase, and a small miscalculation — or a property priced just over a threshold — can be an expensive surprise. Getting advice early on whether or not you qualify for stamp duty exemptions means you understand exactly what you’ll owe (or save), before you’re locked into a contract.
At Sheridan Legal, our conveyancing team helps first home buyers across Kempsey and South West Rocks understand their stamp duty position from day one, so there are no surprises at settlement.
Our conveyancing team provides:
- Fixed-fee pre-purchase contract reviews.
- Clear advice on your stamp duty exemption or concession eligibility.
- Smooth, stress-free settlements.
📞 Contact us today on (02) 6562 3300 to speak with our conveyancing team before you buy.
Frequently Asked Questions
How much stamp duty do first home buyers pay in NSW?
Eligible first home buyers pay no stamp duty on homes valued up to $800,000. A concessional, sliding-scale rate applies to homes between $800,000 and $1,000,000, and full stamp duty applies above $1,000,000.
Does the stamp duty exemption apply to established homes, or only new builds?
It applies to both new and established homes, as well as vacant land you intend to build on — unlike the First Home Owner Grant, which only applies to new homes.
What happens if I go over the $800,000 threshold?
You move into the concessional bracket, where a sliding-scale rate applies up to $1,000,000. Even a small increase in purchase price above $800,000 can add thousands of dollars in duty, so it pays to know exactly where your purchase sits before you make an offer.
Can I defer stamp duty if I’m buying off the plan?
Yes. Eligible off-the-plan purchases may allow you to defer payment for up to 12 months after the contract date, or until settlement, whichever comes first.
Do I lose the exemption if I don’t move in straight away?
You generally need to move into the property within 12 months of settlement and live there for at least 12 continuous months. Failing to meet this requirement can mean repaying the stamp duty savings, plus penalties.
Similar Articles For Your Reference
The Ultimate First Home Buyer Legal Guide in NSW
Conveyancing 101: A Guide to the Conveyancing Process
This article is general information current as of August 2026 and is not a substitute for legal advice. Stamp duty thresholds are set by the NSW Government and reviewed periodically — always confirm current figures with your conveyancer or Revenue NSW before relying on them.