Stamp duty axed for thousands of first home buyers from July 1


Thousands of first home buyers will no longer pay stamp duty from tomorrow, when a fairer, simpler First Home Buyers Assistance Scheme (FHBS) begins.

On Saturday 1 July, the threshold for stamp duty exemptions will increase from $650,000 to $800,000 and the threshold for stamp duty concessions will rise from $800,000 to $1 million.

It means first home buyers purchasing a property up to $800,00 will pay no stamp duty, saving up to $30,735 under the changes.

Based on the current housing market, NSW Treasury expects about 8600 first home buyers in the $650,000 to $800,000 range to pay no stamp duty over the next year, and about 4400 first home buyers in the $800,000 to $1 million range to pay a concessional rate of stamp duty.

The former government’s unfair “forever” land tax scheme gave people paying between $1 million and $1.5 million much larger stamp duty reductions than those able to afford homes up to $1 million.

The former scheme closes on Friday 30 June 2023. Buyers who opted in will continue to pay property tax until they sell that property.

Purchase price

Stamp duty without FHBAS

New stamp duty with FHBAS






























Suburbs where the house price median is between $650,000 and $800,000 include: Colyton, Hassal Grove, Cambridge Park, North St Marys, Richmond, Werrington, Rosemeadow, Warragamba, Leumeah and Whalan.

Suburbs where the apartment price median is between $650,000 and $800,000 include: Waitara, Ashfield, Padstow, Arncliffe, Kogarah, Petersham, Epping, Hillsdale, Sutherland and Wolli Creek.

Suburbs where the house price median is between $800,000 and $1 million include: Guildford, Smithfield, Casula, Liverpool, Ashcroft, Prestons, Fairfield Heights, Merrylands West, Seven Hills and Prospect.

Suburbs where the apartment median price is between $800,000 and $1 million include: Waterloo, Maroubra, Surry Hills, Ultimo, Lewisham, Leichhardt, Oatlands, Castle Hill and Baulkham Hills

Regional centres where the median house price is between $650,000 and $800,000 include: Valla Beach, Bellingen, Sandy Beach, North Arm Cove, Coffs Harbour, Batemans Bay, Queanbeyan West, Albury, Eden and Braidwood.

Treasurer Daniel Mookhey said:

“July 1 will be a great day for thousands of extra first home buyers who will now pay zero stamp duty on their first home purchase.

“These changes will help 5 out of every 6 first home buyers pay no stamp duty, or a concessional rate, and deliver a key election commitment.

“The changes implemented ensure first home buyer assistance in NSW is simpler and fairer, helping those who most need support.

“We know stamp duty can be a considerable barrier for first home buyers. The changes starting today will allow thousands of first home buyers to enter the market sooner and give them a boost when competing with other buyers.”

/Public Release. View in full here.