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First Home Buyer Assistance scheme

First Home Buyer Assistance Scheme

If you’re a first home buyer, you may be entitled to a concessional rate of transfer duty or even an exemption from paying it altogether under the First Home Buyers Assistance scheme (FHBAS).

Unlike the First Home Owner Grant, the FHBAS applies to

  • buying an existing home
  • buying a new home and
  • vacant land on which you intend to build a home.

The NSW Government recently announced increased thresholds for purchases of new homes and vacant land to build a new home from 1 August 2020.  The threshold for existing home purchases remains unchanged.

The tables below show the new thresholds from 1 August 2020 to 31 July 2021 and the thresholds for agreements dated between 1 July 2017 to 31 July 2020.

First Home Buyer Assistance Scheme: 1 August 2020 – 31 July 2021

New homes

Existing homes

Vacant land

  • Buy a new home valued at less than $800,000, apply for a full exemption, and pay no transfer duty.
  • Buy a new home valued between $800,000 and $1 million, and apply for a concessional transfer duty rate. The amount will be based on the value of your home.
  • Buy an existing home valued at less than $650,000, apply for a full exemption and pay no transfer duty.
  • Buy an existing home valued between $650,000 and $800,000, and apply for a concessional transfer duty rate. The amount will be based on the value of your home.
  • You won’t pay transfer duty if your land is valued at less than $400,000.
  • For land valued between $400,000 and $500,000, you’ll receive a   concessional rate.

First Home Buyer Assistance Scheme: 1 July 2017 – 31 July 2020

If you are a first home buyer and purchased a home or vacant land between 1 July 2017 and 31 July 2020 you may be eligible for the following exemptions or concessions.

New homes

Existing homes

Vacant land

  • Buy a new home valued at less than $650,000, apply for a full exemption, and pay no transfer duty.
  • Buy a new home valued between $650,000 and $800,000, and apply for a concessional transfer duty rate. The amount will be based on the value of your home.
  • Buy an existing home valued at less than $650,000, apply for a full exemption and pay no transfer duty.
  • Buy an existing home valued between $650,000 and $800,000, apply for a concessional transfer duty rate. The amount will be based on the value of   your home.
  • You won’t pay transfer duty if your land is valued at less than $350,000.
  • For land valued between   $350,000 and $450,000, you’ll receive a concessional rate.

Find out how much transfer duty you'll pay

First Home Buyer Assistance Scheme: 1 August 2020 – 31 July 2021*

*The rates in the table below apply from 1 August 2020 – 31 July 2021

Property type

New transfer (stamp) duty amount for eligible first home buyers

Transfer (stamp) duty savings

   

Vacant land

  

$350,00

$0 (no change)

$11,085

$400,000

$0

$13,335

$450,000

$8,917.50

$6,667.50

New home

  

$650,000

$0 (no change)

$24,585

$700,00

$0

$26,835

$800,000

$0

$31,335

$850,000

$10,083.75

$23,501.25

$900,000

$20,167.50

$15,667.50

$950,000

$30,251.25

$7,833.75

Existing home

  

$650,000

$0 (no change)

$24,585

$700,000

$10,445 (no change)

$16,390

$800,000

$31,335 (no change)

$0.00

Transfer duty calculator

Transfer Duty Calculator for contracts executed between 1 July 2017 to 31 July 2020.

How to apply

After you’ve exchanged contracts with the previous owner you can apply for either of the FHBAS (1 July 2017 – 31 July 2020 scheme OR 1 August 2020 – 31 July 2021 scheme) by downloading and completing the:

  1. First Home Buyers Assistance scheme application form and
  2. Purchaser/Transferee Declaration form (individual)
    Note: New interactive form with declaration tick boxes in place of statutory declaration.

You need to lodge your application forms and supporting documents with your solicitor or conveyancer.

Who’s eligible for the FHBAS?

To qualify for the FHBAS

  • the contract date must be on or after 1 July 2017 and must be for the whole property
    Note: To be eligible for the increased transfer (stamp) duty threshold available between 1 August 2020 and 31 July 2021, the contract date must be on or after 1 August 2020 and on or before 31 July 2021.
  • you must be an individual, not a company or trust
  • you must be over 18
  • you, and your spouse or partner, must never have owned or co-owned residential property in Australia
  • you, and your spouse or partner, must never have received an exemption or concession under this scheme
  • at least one of the first home buyers must be an Australian citizen or permanent resident.

Requirements for living in the property

You or one of the other first home buyers must

  • move into the new home within 12 months after buying the property and
  • live there for at least six continuous months.

If you’re a member of the Australian Defence Force when buying your first home and you and everyone you’re buying with is on the NSW electoral roll, you won’t have to meet these living requirements.

If you have any questions about the requirements for living in the property, contact us.

Definition of new home

A new home is a home that has not been previously occupied or sold as a place of residence and includes a substantially renovated home and a home built to replace demolished premises.

Buying with others who aren’t eligible

The FHABS applies when 50% or more of buyers are eligible.

  • If you’re buying a home with others who aren’t eligible, you can still apply for the scheme if you and any other eligible buyers are purchasing at least half of the property. This is called a shared equity arrangement.
  • Shared equity doesn’t apply if your spouse is one of the ineligible buyers.

Changes in living arrangements

If your circumstances change and you won’t be able to move into the house within 12 months or you can’t live there for six continuous months, you are no longer eligible for the scheme.

You must let us know straight away to arrange the correct duty to be paid. Otherwise, you’ll face the possibility of penalties or fines.

Contact us to update your details.

Making false claims

There are substantial penalties for providing false or misleading information when applying for the FHBAS. We regularly check applications for inaccuracies and compare your information to data from other government agencies and businesses.

Objections and reviews

You can lodge an objection or request a reassessment if you’re dissatisfied with an assessment or decision we’ve made.

Contact us

If you haven't found answers on this website to questions about first home buyer assistance and how to apply, contact us.