What is the income limit for first home buyer concessions in NSW?
NSW's stamp duty concession for first home buyers — the First Home Buyer Assistance Scheme — has no income test. Your eligibility is based on the property price, not what you earn. Other federal schemes, including the First Home Guarantee, do have income caps: $125,000 per year for singles and $200,000 combined for couples.
The Fuller Picture
NSW's stamp duty relief for first home buyers — called the First Home Buyer Assistance Scheme (FHBAS) — is based entirely on the purchase price of the property, not your income. There is no income test. If you meet the property price threshold, you qualify. For existing homes priced up to $800,000 you receive a full exemption; between $800,000 and $1,000,000 you receive a concession. New builds have different, generally higher thresholds.
Federal schemes are different. The Home Guarantee Scheme — which covers the First Home Guarantee, the Regional First Home Buyer Guarantee, and the Family Home Guarantee — sets income caps at $125,000 per year for single applicants and $200,000 combined for couples. These are assessed on your taxable income from the previous financial year. The scheme allows eligible buyers to purchase with a 5% deposit without paying Lenders Mortgage Insurance, because the federal government guarantees the remaining portion of the deposit.
The Help to Buy shared equity scheme, when fully available, applies stricter income limits: $90,000 for singles and $120,000 for couples. The First Home Super Saver Scheme (FHSS), which lets you withdraw voluntary super contributions toward a deposit, has no income cap — though the tax benefit you receive depends on your marginal rate.
What This Means for Your Purchase
For most buyers, the most valuable NSW concession — the stamp duty exemption — requires no income check at all. This means earning a strong salary does not disqualify you. A buyer on $110,000 receives the same stamp duty exemption as someone on $55,000, provided the property price falls within the threshold.
Where income limits matter is when you're relying on a federal scheme to stretch a small deposit. If you're close to the $125,000 cap as a single buyer, check your Notice of Assessment from the previous tax year before applying. The income figure used is taxable income — which may include salary, investment income, and other sources. Exceeding the cap removes you from eligibility for that financial year, even by a small margin.
It is also possible to combine benefits. A buyer can use the FHBAS stamp duty exemption alongside the First Home Guarantee — they are separate programs run by separate bodies. Getting clarity on which combination applies to your situation before you sign a contract avoids costly surprises at exchange.
How This Shows Up in the Illawarra
In the Illawarra, the $800,000 stamp duty exemption threshold is relevant but has become tighter as median house prices in Wollongong have risen above that mark in many suburbs. Apartments and townhouses typically remain within range, and suburbs around Shellharbour, Dapto, Lake Illawarra, and parts of the escarpment still offer houses near or below the threshold. Buyers who focus their search on those price points can access the full exemption regardless of their income.
The Regional First Home Buyer Guarantee applies to buyers purchasing in regional areas, with the same income caps as the standard First Home Guarantee. Parts of the Illawarra — particularly Albion Park, Dapto, and areas further from Wollongong CBD — can qualify as regional for scheme purposes. If you're looking at those suburbs, it's worth confirming the regional classification with your mortgage broker, as using the regional guarantee preserves the standard city-area guarantee allocation for other buyers.
Frequently Asked Questions
Does the NSW stamp duty exemption have an income test?
No. The First Home Buyer Assistance Scheme in NSW does not have an income cap. Eligibility is based solely on the purchase price and whether you meet the first home buyer criteria — not on how much you earn.
What counts as income for the Home Guarantee Scheme?
The income assessment uses your taxable income from the most recent financial year, as shown on your ATO Notice of Assessment. This includes salary, investment income, and other taxable earnings. Non-taxable income such as the tax-free component of super is generally excluded.
Can a couple earning $210,000 combined still access first home buyer concessions?
Yes — the NSW stamp duty exemption has no income cap, so a couple earning $210,000 can still receive that benefit if the property qualifies on price. They would not be eligible for the federal Home Guarantee Scheme, which caps joint applicants at $200,000.
Are places in the First Home Guarantee limited each year?
Yes. The federal government allocates a set number of guarantee places each financial year. Once those places are taken, new applicants cannot access the scheme until the following year. Applying early in the financial year — particularly through July to September — gives you the best access to available places.
What happens if I exceed the income cap when I apply?
Income is assessed at the point of application using your most recent Notice of Assessment. If you exceed the cap based on that figure, you won't be eligible for that year's allocation. You may become eligible in a later year if your taxable income changes, or if you apply in a year where the assessment period uses a lower-income year.
Can a buyers agent help me work out which concessions I qualify for?
A buyers agent can help you understand how price thresholds interact with the local market and structure your search accordingly, but formal eligibility checks sit with your conveyancer and mortgage broker. Getting all three involved early means no concession is missed and no surprises appear at exchange.
If you're unsure which concessions you qualify for, we can help you map out your options before you start searching. Reach out for a straightforward conversation about your situation.
