What is the First Home Buyers Assistance Scheme in NSW?
Stamp duty exemption and discounts for First Home Buyers in NSW
The First Home Buyer’s Assistance Scheme also abbreviated as the FHBAS is a first home buyer benefit provided by the NSW government via the Revenue NSW office that allow eligible first home buyers to receive full stamp duty exemption or stamp duty discounts based on the purchase price threshold.
This benefit is available when buying your first home and it applies to existing homes and new homes valued up to $1,000,0000. It is also available if you purchasing vacant land valued up to $450,000 with the intention to build a home.
Who is eligible for the First Home Buyers Assistance Scheme?
To be an eligible first home owner you must meet the below list of requirements:
- You are purchasing a new or existing residential property, or you are purchasing vacant land with intention to build in NSW
- The purchase property value must be within the threshold amounts
- You must be purchasing the whole property and not a portion of the property
- You must be an individual – this means you are not purchasing under a company or trust
- You and your spouse or partner must never have owned or had a share in residential property in Australia
- You and your spouse or partner must never have previously received an exemption or concession under the same scheme
- At least one of the first home buyers must be an Australian citizen or permanent resident
- You must meet the requirements to live in the property as per the conditions detailed below
Property value and thresholds
You can calculate how much stamp duty you will pay as a first-time home buyer when buying an existing home or brand new home or vacant land in New South Wales by using our stamp duty calculator.
Alternatively, you can use the Revenue NSW First Home Buyers Assistance calculator here.
What are the savings when using the First Home Buyers Assistance Scheme
The maximum savings you can achieve using this scheme is when you purchase a property for $800,000. The standard stamp duty rate on a $800,000 purchase is $30,529. Under the scheme, this cost is completely waived, saving you the full amount of stamp duty.
As your purchase price increases above $800,000 you will receive a discount on the stamp duty. Below is an example comparison between someone paying full stamp duty versus someone receiving a discount or concessional rate of stamp duty:
Scenario 1:
Value of the property: $850,000
Normal stamp duty: $32,779
Discounted stamp duty: $9,882.25
Discount: 69.85%
Stamp duty savings: $22,896.75
Scenario 2:
Value of the property: $900,000
Normal stamp duty: $35,029
Discounted stamp duty: $19,764.50
Discount: 43.58%
Stamp duty savings: $15,264.50
Scenario 3:
Value of the property: $950,000
Normal stamp duty: $37,279
Discounted stamp duty: $29,646.75
Discount: 20.47%
Stamp duty savings: $7632.25
Requirements for living in the property
The first home buyer assistance scheme has two very strict requirements to ensure you eligible.
You or one of the eligible first home buyers must move into the property or home within 12 months of settlement.
You are also required to live in the property for a continuous period of 12 months as your princpal place of residence.
Please note, if you purchased a property between 1 July 2017 and 30 June 2023 (inclusive), the requirement to live in the property continuously is only 6 months. This is usually applicable to someone who has purchased a property off the plan during this period.
Members of the Australian Defence Force
There is an exception to this rule if you are member of the permanent forces of the Australian Defence Force when you exchange contracts to purchase the property, you will not have to meet the above residence requirements if you and co-buyers are on the NSW electoral roll.
Please be aware, the Revenue NSW will conduct audits on individuals who have received the first home buyer assistance scheme benefit and if you did not meet this requirement, you will be required to pay the full stamp duty plus interest. See recent article on the NSW government recouping $9M from first home buyers gaming the system.
Buying with someone who is not eligible
The great news with the first home buyer’s assistance scheme is that you will still be eligible for the benefits even if you are buying with someone who is not eligible. This exception is called shared equity arrangement.
However, this exception does not apply if your spouse is one of the ineligible buyers.
As the eligible buyer, you must be purchasing at least 50% of the property, and you will receive the stamp duty benefit based of the value of your purchase.
The ineligible buyer will need to pay stamp duty as per normal.
Can I use the First Home Buyer Assistance Scheme with other first home buyer benefits?
Absolutely! You are allowed to use multiple qualifying first home buyer schemes or grants as long as you meet the eligibility criteria.
We have had clients use all available first home buyer schemes and grants to make buying their first home as easy and quickly as possible. Below is an example of someone who we’ve assisted that took advantage of this.
Scenario: Jenny* purchased an off the plan apartment in Western Sydney for $600,000 as her first home. As a result of buying a brand new property and at the price of $600,000, she was entitled to claim the following:
First Home Buyers Assistance Scheme: Full stamp duty waiver, saving her $21,529
First Home Owners Grant: Received a grant of $10,000 towards her purchase, provided at time of settlement
First Home Guarantee Scheme: Borrowing 95% of the property value without paying any lender’s mortgage insurance on her home loan. Saving an approximate $23,954.
In total, Jenny saved $55,483 by taking advantage of all the first home buyer benefits available to her.
What happens if you make a false claim
If you receive the first home buyer assistance scheme benefits but do not meet the living in the property requirements, there are penalties in providing false or misleading information. If found out, the Revenue NSW office will require you pay back the stamp duty waiver or discount you receive along with interest.
The Revenue NSW office will check with other government offices via data sharing arrangement to audit your claim. This includes the ATO, Rental Board, Utility providers, the RMS etc.
Where do I get more information?
If you need additional information or clarification regarding eligibility or your particular situation does not fit the above, you can contact the First Home Buyers Assistance Scheme at Revenue NSW by:
Phone: 1300 139 814 or 02 7808 6916
Email: [email protected]
