How much stamp duty will I pay as a first home buyer in NSW?
First home buyers in NSW pay no stamp duty on properties purchased for up to $800,000 under the First Home Buyer Assistance Scheme (FHBAS), and a reduced concessional rate on properties between $800,001 and $1,000,000. Above $1,000,000, full standard stamp duty applies with no concession. The exemption is processed by your conveyancer as part of the settlement process — you do not need to arrange it separately.
The Fuller Picture
The NSW First Home Buyer Assistance Scheme (FHBAS) removes stamp duty entirely on homes priced at $800,000 or below. On a $750,000 property, a first home buyer pays nothing — whereas a standard purchaser would pay roughly $27,000 to $29,000 in stamp duty at the same price. That is a material saving that often makes the difference in what buyers can afford to put toward their deposit or initial costs after purchase.
Between $800,001 and $1,000,000, the exemption phases out on a sliding scale. The closer your purchase price is to $800,000, the more of the concession you retain. At $810,000, you would pay a small fraction of the standard duty. At $990,000, the concession is quite limited. The scheme applies to both new and existing homes, provided you meet the eligibility requirements — which include never having owned a residential property in Australia before.
Above $1,000,000, no concession applies and you pay full stamp duty at standard NSW rates. For a property at $1.1M, stamp duty at standard rates is approximately $44,000 to $46,000, paid at or before settlement. This is one reason many first home buyers target the sub-$800,000 price band — eliminating stamp duty meaningfully improves their overall purchasing position without requiring a larger income or bigger deposit.
What This Means for Your Purchase
The stamp duty exemption changes how you structure your overall purchase budget. If you are targeting a $780,000 property and pay no stamp duty, your total purchase costs are largely limited to legal fees, building inspection, pest report, and loan establishment costs — typically $3,000 to $5,000 for a straightforward purchase. This means more of your savings can be directed toward your deposit, giving you a stronger position with your lender.
For properties priced in the $800,000 to $1,000,000 band, you need to account for a partial stamp duty obligation in your planning. Ask your conveyancer for an estimate of your stamp duty liability as soon as you have a target purchase price. Do not assume the full exemption applies and then discover at settlement that you owe several thousand dollars you had not budgeted for.
If you are negotiating close to the $800,000 threshold, the contract price is what triggers the exemption or concession — not the bank valuation. A successful negotiation from $805,000 to $799,000 could eliminate your entire stamp duty liability, which may be worth more than $20,000. This makes contract price negotiation particularly significant in that price range, and it is worth factoring this into how you approach an offer.
How This Shows Up in the Illawarra
In the Illawarra, the $800,000 threshold is still reachable in a number of suburbs, but it is becoming tighter as median prices have risen across Wollongong, Shellharbour, and the inner coastal belt. First home buyers who target suburbs like Dapto, Albion Park, Warrawong, Fairy Meadow, or Corrimal often find properties within or near the threshold range — whereas beachside suburbs like Thirroul, Austinmer, and Bulli regularly transact well above $1,000,000, where no concession applies at all.
For buyers who can be flexible on location, the stamp duty saving is a genuine strategic lever. Staying below $800,000 frees up $27,000 to $29,000 that would otherwise go to stamp duty — money that can instead go toward your deposit, strengthen your borrowing position, or cover early costs after purchase. A buyers agent familiar with the Illawarra market can help you identify where the genuine sub-$800,000 opportunities exist without compromising on your core property criteria.
Frequently Asked Questions
What is the stamp duty on a $750,000 home for a first home buyer in NSW?
Under the First Home Buyer Assistance Scheme, a $750,000 purchase attracts no stamp duty for an eligible first home buyer. A standard purchaser buying the same property would pay approximately $27,000 to $29,000 in stamp duty at that price point.
Does the stamp duty exemption apply to new homes and existing homes?
Yes — the FHBAS applies to both new and existing homes. As long as the purchase price is under $800,000 and you meet the eligibility requirements, no stamp duty is payable regardless of whether the property is newly built or established.
Can I get the stamp duty exemption if my partner has owned property before?
Generally, no. If any buyer on the contract has previously owned a residential property in Australia, the FHBAS exemption does not apply. Both parties must be eligible first home buyers. This is a common issue for couples where one partner has owned property in the past — check this with your conveyancer before you commit.
When do I actually pay stamp duty in NSW?
Stamp duty is assessed at exchange of contracts but is typically paid at or before settlement. Your conveyancer will arrange this and advise on the exact timing. If you are exempt under the FHBAS, you still need to submit the exemption application — your conveyancer handles this as part of the settlement process.
What happens to stamp duty if I end up buying at $810,000 as a first home buyer?
You would pay a concessional (reduced) rate rather than full stamp duty. The concession operates on a sliding scale — at $810,000 you retain most of the exemption benefit, and the amount payable would be substantially less than what a standard purchaser pays. Your conveyancer can give you the exact figure for any price in that band.
Can a buyers agent help me stay under the stamp duty threshold?
Yes, and this is one of the more practical ways a buyers agent adds value for first home buyers. Understanding which suburbs have genuine sub-$800,000 opportunities and negotiating to or below that threshold — where it makes strategic sense — is part of the search and negotiation process.
Working out exactly how stamp duty affects your budget is one of the first things we help buyers clarify. If you're unsure how the threshold applies to your situation, reach out and we can walk you through it.
