The ledger · Sheet 2 of 6

First home buyers in NSW

The NSW Government has two key programs for home buyers: the First Home Buyers Assistance Scheme, which removes or reduces transfer duty, and the First Home Owner (New Homes) Grant of $10,000 for a new or substantially renovated home. As at October 2026, the duty scheme gives a full exemption on a home valued up to $800,000, or vacant land up to $350,000, and a reduced rate above those values, below $1 million for a home and $450,000 for land.

General information, not legal or financial advice. The NSW Government’s Home Buyer Assistance Finder gives an indication of eligibility for your own situation, and Revenue NSW’s pages carry the full rules.

The two NSW programs side by side, for contracts exchanged on or after 1 July 2023, as at October 2026
QuestionAssistance SchemeNew Homes Grant
What it gives A full exemption from transfer duty, or a concessional rate A $10,000 grant
Which homes A new or existing home, or vacant land in NSW A home that is newly built, bought off the plan or substantially renovated; not an established home
Value limits Home: exempt up to $800,000, concessional above that and below $1 million. Vacant land: exempt up to $350,000, concessional above that and below $450,000 Purchase price up to $600,000 for a new home; up to $750,000 for land plus a building contract
Living there For a home, move in within 12 months after settlement and live there for at least 12 continuous months Move in within 12 months and live there for at least 12 continuous months
How you apply After exchange, with the forms and proof of identity lodged with your solicitor or conveyancer Through the approved agent providing your finance if you need the grant at settlement; otherwise online within 12 months of settlement or completion

The two are not either-or. Revenue NSW says eligible buyers may receive the grant on top of other exemptions or concessions. The Australian Government’s deposit scheme is a third, separate program, covered on sheet 3.

Who the duty scheme is for

Revenue NSW lists these conditions for the First Home Buyers Assistance Scheme:

Members of the permanent forces of the Australian Defence Force need not meet the residence requirement if, at exchange, everyone buying is on the NSW electoral roll.

The reduced rates

Between the exemption limit and the upper limit, the duty is reduced rather than removed, and the amount depends on the value. The NSW Government publishes sample figures for transactions from 1 July 2026 to 30 June 2027:

New and existing homes
ValueDuty payable
$850,000$9,796.75
$900,000$19,593.50
$950,000$29,390.25
$990,000$37,227.65
Vacant land
ValueDuty payable
$370,000$2,761.40
$390,000$5,552.80
$410,000$8,514.20
$430,000$11,475.60

For any other value, Revenue NSW’s First Home Buyers Assistance calculator estimates the saving if you meet the eligibility requirements.

Who the grant is for

The grant has its own rules about past ownership. You are not eligible if you or your spouse have already had a First Home Owner Grant anywhere in Australia, owned a home or other residential property in Australia at any time before 1 July 2000, or lived for six continuous months or more in an Australian home you owned on or after 1 July 2000.

Each applicant must be at least 18, and at least one must be a permanent resident or Australian citizen; benefits are not available for temporary residents. One grant is paid per property transaction, not per person. The grant is not means tested and is not taxed. Owning property outside Australia does not by itself rule you out, and an inherited property does not qualify, because you must be the buyer or builder.

If your plans change

Both programs depend on living in the home. Under the duty scheme, if you can no longer meet the residence requirement you are no longer eligible, and you must tell Revenue NSW straight away so the correct duty can be paid, or interest and penalties may apply. Revenue NSW may allow a shorter period or waive the requirement in exceptional circumstances, on written request.

Under the grant, moving out before the 12 months are up means repaying the grant, and Revenue NSW says that not contacting it to repay can bring a fine of up to $11,000.

Buying with someone who is a foreign person

Being eligible for the duty scheme does not exempt a foreign person from surcharge purchaser duty. Revenue NSW gives the example of New Zealand citizens and permanent residents who qualify for the scheme but may still owe the surcharge if they are not ordinarily resident in Australia. The surcharge is calculated on the foreign person’s share of the property. The rules are on sheet 4.