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First Home Buyer Choice guide

This guide centralises key information on the First Home Buyer Choice (FHBC) Initiative and provides industry professionals a greater understanding of the legislative and operational requirements when an eligible purchaser/transferee is choosing to opt into property tax.

For a comprehensive understanding of the FHBC, it is recommended that the guide is read in its entirety.

Chapters

  1. First Home Buyer Choice overview
  2. Eligibility criteria to opt into property tax
  3. Application and approval to opt into property tax
  4. Lodgement requirements
  5. Retrospective applications to opt into property tax
  6. Off the plan purchase contracts
  7. Buying with an equity partner
  8. Approved trusts
  9. Surcharge purchaser duty
  10. Change of mind
  11. Complex scenarios
  12. Property tax information

11. Complex scenarios

On this page

From 1 July 2023, First Home Buyer Choice (FHBC) will no longer be available. Eligible first home buyers who exchange contracts on or before 30 June 2023 will have until completion of the agreement to opt in to FHBC.


Retrospective applications to opt into property tax closed on 30 June 2023.


Those who have already opted into FHBC will not be impacted.


On 1 July, the First Home Buyers Assistance Scheme (FHBAS) will be expanded. See the FHBAS guide for details.

This chapter identifies some transactions which are considered complex and must be submitted to Revenue NSW for assessment.

The Duties Document Matrix (PDF, 506.95 KB) provides a comprehensive list of all complex transactions which must be lodged via eDuties to be assessed by Revenue NSW.

 

Applications must be submitted in eDuties using application type “First Home Buyer Choice - Assessment Application”.


To avoid delays, ensure all relevant evidentiary requirements, proof of identity documents and forms are submitted in eDuties at the time of application.

Retrospective applications to opt into property tax – Off the plan

Off the plan purchase contracts signed on or after 11 November 2021 which settle on or after 11 November 2022 may be eligible to retrospectively opt into property tax.

Refer to Chapter 6 – Off the plan purchase contracts for details

Transfers in substantial conformity

Under Section 17 of the Property Tax (First home Buyer Choice) Act 2022, the transfer of land must be in conformity or substantial conformity with the agreement for sale and the eligible purchaser/transferee must satisfy the residence requirement.

Similar to transfers not in conformity prescribed in Section 18(3) of the Duties Act 1997, a transfer will be in substantial conformity if:

  • The transfer would be in conformity with an agreement if the transferee were the purchaser under the agreement
  • The transfer occurs at time of settlement, or proximately with settlement; and
  • At both time of agreement and settlement, the purchaser and transferee were related persons (as defined in the Duties Act 1997 dictionary) or
  • If purchased as trustee – the purchaser and the beneficiary were related persons.

A transaction is not eligible to opt into property tax unless the transfer is in conformity or substantial conformity with the agreement.

Aggregations

Section 25 of the Duties Act 1997 provides for the aggregation of certain dutiable transactions for the purposes of calculating duty.

In certain circumstances, transactions involving eligible purchasers/transferees opting into property tax may be subject to the aggregation provisions.

For transactions which involve an aggregation of dutiable property and an eligible purchaser/transferee opting into property tax, an application must be submitted with Revenue NSW for assessment.

Transfers involving land already subject to property tax

For information regarding the property tax implications for transfers of land already opted into property tax refer to Part 8 of the Property Tax (First Home Buyer Choice) Act 2022. 

This guide will be updated with instructions for the assessment and processing requirements for these transactions.

 

First Home Buyers Choice does not change the eConveyancing process.


A Duties Assessment Number (DAN) will be provided on the Duties Notice of Assessment. Duties verification and settlement is then conducted via the Electronic Lodgement Network Operator (ELNO).

References

Section 17 of the Property Tax (First home Buyer Choice) Act 2022 - Decision on application

Part 8 of the Property Tax (First Home Buyer Choice) Act 2022 - Part 8 Transactions involving land subject to property tax

Section 18(3) of the Duties Act 1997 – No double duty

Section 25 of the Duties Act 1997 - Aggregation of dutiable transactions

Duties Act 1997 - Dictionary