First Home—New Home

The First Home—New Home scheme was replaced by the First Home Buyers Assistance scheme on 1 July 2017.

The First Home—New Home Scheme is a NSW Government initiative which provides exemptions or concessions on transfer duty for eligible NSW first home buyers. This includes vacant land on which you intend to build your first home.

The First Home—New Home Scheme has Proof of Identity requirements, the details of which are contained in the Application and Lodgement Guide.

About the First Home—New Home Scheme

The First Home—New Home Scheme provides eligible purchasers with exemptions on transfer duty on new homes valued up to $550,000 and concessions on duty for new homes valued between $550,000 and $650,000.

Eligible purchasers buying a vacant block of residential land to build their home on will pay no duty on vacant land valued up to $350,000, and will receive concessions on duty for vacant land valued between $350,000 and $450,000.

To qualify for First Home—New Home, you must meet the criteria listed below:

  • The contract and the transfer must be for the purchase of the whole of the property.

  • All purchasers must be ‘eligible purchasers’.

  • At least 1 eligible purchaser must occupy the home as their principal place of residence for a continuous period of 6 months, commencing within 12 months of completion of the agreement. (Where an eligible purchaser was a member of the permanent forces of the Australian Defence Force and all purchasers were enrolled on the NSW electoral roll, as at the transaction date, then all purchasers are exempt from the residence requirement).

  • An ‘eligible purchaser’ is a natural person (i.e. not a company or trust) at least 18 years of age who has not, and whose spouse/de facto has not:

    • at any time owned (either solely or with someone else) residential property in Australia other than property owned solely as trusteeor executor

    • previously received an exemption or concession under First Home—New Home.

Note: If all purchasers are not ‘eligible purchasers’, you may still qualify for a concession under the shared equity arrangements in First Home—New Home.

Calculating the concessions on duty

Refer to the First Home—New Home tables below for a guide to the concession applicable. You can calculate the exact amount of your concession using the First Home—New Home calculator.

Homes

You do not have to pay duty on the purchase of a new home up to $550,000. To calculate the First Home—New Home concession on a home between $550,000 and $650,000, multiply the purchase price by 0.2474 and subtract $136,070.

First Home—New Home – homes example calculations

Purchase price ($) Usual duty ($) First Home—New Home Duty ($) Savings ($)
300,000 8,990 0 8,990
400,000 13,490 0 13,490
500,000 17,990 0 17,990
550,000 20,240 0 20,240
575,000 21,365 6,185 15,180
600,000 22,490 12,370 10,120
625,000 23,615 18,555 5,060
650,000 24,740 No discount 0

Vacant land

You do not have to pay duty on the purchase of vacant land up to $350,000.  To calculate the First Home—New Home concession on land between $350,000 and $450,000, multiply the purchase price by 0.1574 and then subtract $55,090.

First Home—New Home – vacant land example calculations

Purchase price ($) Usual duty ($) First Home—New Home duty ($) Savings ($)
200,000 5,490 0 5,490
300,000 8,990 0 8,990
350,000 11,240 0 11,240
375,000 12,365 3,935 8,430
400,000 13,490 7,870 5,620
425,000 14,615 11,805 2,810
450,000 15,740 No discount 0

Shared Equity Arrangements under First Home—New Home

First Home—New Home shared equity arrangements allow eligible purchasers to buy property with other parties and still receive a concession. To qualify, the eligible purchasers must buy at least 50 per cent of the property. The value limits and other eligibility criteria of First Home—New Home apply.

Transfer duty is calculated with reference to the proportion of the property purchased by other parties. However, this interest is disregarded if it is not more than 5%.

The tables below give a guide to the concession applicable. You can calculate the exact amount of your concession using the First Home—New Home calculator.

Note: If the first home buyer’s spouse has previously owned a home or received a benefit under First Home—New Home, the first home buyer will not be entitled to the shared equity arrangements concession under First Home—New Home, regardless of whether or not the spouse is also a purchaser.

First Home—New Home Shared Equity Arrangements – homes example calculations

  50% acquired by first home buyer   90% acquired by first home buyer  
Purchase price ($) Duty ($) Savings($) Duty ($) Savings ($)
300,000 4,495 4,495 899 8,091
400,000 6,745 6,745 1,349 12,141
500,000 8,995 8,995 1,799 16,191
550,000 10,120 10,120 2,024 18,216
575,000 13,775 7,590 7,703 13,662
600,000 17,430 5,060 13,382 9,108
625,000 21,085 2,530 19,061 4,554
650,000 24,740 No discount 24,740 No discount

First Home—New Home Shared Equity Arrangements – vacant land example calculations

  50% acquired by first home buyer   90% acquired by first home buyer  
Purchase price ($) Duty ($) Savings ($) Duty ($) Savings ($)
200,000 2,745 2,745 549 4,941
300,000 4,495 4,495 899 8,091
350,000 5,620 5,620 1,124 10,116
375,000 8,150 4,215 4,778 7,587
400,000 10,680 2,810 8,432 5,058
425,000 13,210 1,405 12,086 2,529
450,000 15,740 No discount 15,740 No discount

To apply for the shared equity arrangements concession, use the First Home—New Home application form.

How to apply for First Home—New Home

You can print an application form for First Home—New Home, phone and ask to have an application posted to you, or send an email. Forms are also available from your solicitor or conveyancer.

Submit your First Home—New Home application together with your Agreement for Sale/Transfer (contract) for processing by us or your solicitor/conveyancer can process the application electronically through our Electronic Duties Return system, EDR.

Your application must be accompanied by all supporting documents. You must have already exchanged contracts to purchase your first home or vacant land.

False claims

There are substantial penalties for knowingly making false or misleading statements in connection with an application for First Home—New Home.

We conduct investigations and compliance checks to ensure the duty exemption/concession is given only to those applicants who are entitled to receive them. We audits claims with current and historical data held by other State and Territory agencies and commercial organisations.

For more information about first home benefits, contact us.

Contact

First Home Buyers Assistance scheme (FHBA)

Phone
1300 130 624*
8.30am - 5.00pm Monday to Friday
Email

First Home Owner Grant scheme (FHOG)

Phone
1300 130 624*
8.30am - 5.00pm Monday to Friday
Email

Last updated: 30 June 2017