For Sydney first home buyers, stamp duty relief is often the biggest single saving on the table, bigger than most grants, and it arrives exactly when cash is tightest: at settlement. Here is how the NSW First Home Buyers Assistance Scheme works in 2026, and the details that catch people out.

What are the NSW first home buyer duty thresholds?

Eligible first home buyers in NSW pay no transfer duty on homes up to $800,000, and a concessional rate on homes between $800,000 and $1 million. The concession tapers: just above $800,000 the duty is small, and it climbs towards the full rate as the price approaches $1 million. Above $1 million, full duty applies regardless of first home status. On Sydney prices this makes the $800,000 line one of the most consequential numbers in the entire purchase, which is why we wrote a full page on buying at $800,000.

Who qualifies for the exemption?

The scheme is for individuals (not companies or trusts) aged 18 or over who have never owned residential property in Australia, buying a home they will actually live in. At least one buyer must move in within 12 months of settlement and live there for a continuous 12 months. Buying with someone who has owned before complicates things but does not always end them, the eligible buyer’s share can sometimes still receive relief, which is one of many reasons buying with a partner deserves its own planning.

How is the exemption applied?

You do not pay duty and claim it back. Your conveyancer or solicitor lodges the application with the purchase, and if you are eligible the duty simply is not payable at settlement. This is worth understanding when budgeting: an eligible buyer at $780,000 needs tens of thousands less cash at settlement than an ineligible buyer at the same price.

Which details catch buyers out?

  • The price is the dutiable value. Duty is assessed on the higher of price or market value, so an under-market family sale does not dodge duty on the difference.
  • The residence requirement has teeth. Move-in and 12-month residence conditions are real obligations; breaching them can mean paying the duty after all. If your plans might change, ask before you claim.
  • Vacant land has its own thresholds. Buying land to build on is treated separately with lower thresholds. If that is your path, check the current Revenue NSW figures before committing.
  • New and established homes are treated the same under the current scheme, the thresholds above apply to both.
  • Thresholds change. Governments adjust these settings. Figures here reflect the scheme as at early 2026; Revenue NSW is the authoritative source at the moment you sign.

How does duty relief work with the other schemes?

Duty relief stacks with the 5% deposit scheme, they are separate governments’ programs with separate rules, and qualifying for one does not require the other. It also stacks with the $10,000 First Home Owner Grant, which in NSW applies to new homes within its own price caps. A first home buyer purchasing a new build under $800,000 can potentially use all three at once.

Put a number on it

What is the relief worth in dollars?

At $800,000, a buyer who does not qualify for first home relief pays a little over $30,000 in transfer duty, while an eligible first home buyer pays nothing. That single line item is larger than the 5% deposit on the same property, and it is the reason so much of Sydney’s first home buying happens just under the threshold.

Between $800,000 and $1 million the concession tapers. Just above $800,000 the duty payable is small; as the price approaches $1 million it approaches the full amount. The practical consequence is that a buyer weighing $790,000 against $830,000 is not comparing a $40,000 difference in price, they are comparing that plus the first slice of duty, which is why the stamp duty calculator is worth running at both prices before you decide how hard to negotiate.

What will your conveyancer ask for?

The application for relief is lodged with the transfer, and your conveyancer or solicitor prepares it. Expect to provide identification for every buyer, a declaration that none of you has owned residential property in Australia before, and an undertaking about residence. Have these ready early. Relief is assessed by Revenue NSW, and a missing document at the wrong moment can delay settlement rather than simply the paperwork.

What if you buy with someone who has owned before?

This is the situation that generates the most questions. Where one buyer has previously owned property and the other has not, the eligible buyer may still be able to receive relief on their share of the purchase, with the ineligible buyer’s share assessed at the ordinary rate. The rules around shares, and around whether a prior ownership was of a kind that counts, are detailed enough that the right move is to have your conveyancer confirm your position before you rely on any figure. Our guide to buying with a partner covers the ownership structures this usually involves.

How are off-the-plan, new builds and vacant land treated?

Under the current scheme an off-the-plan apartment is assessed on the same thresholds as an established home, and buying a new build can also bring the $10,000 First Home Owner Grant into play within that grant’s own caps. Vacant land bought to build on is treated separately, with its own, lower thresholds, and the residence requirement is then measured from when the home is complete. If you are weighing a house-and-land package against an established home, the duty treatment is one of the things that genuinely differs between them.

What if your plans change after you move in?

The residence requirement is to move in within 12 months of settlement and live there for a continuous 12 months. After that period the obligations attached to the relief are satisfied, and a later decision to rent the property out is a separate matter between you and your lender. Before that period is up, circumstances such as a job relocation can put the relief at risk, and the right response is to contact Revenue NSW rather than to hope. There are provisions for genuine hardship, but they are applied for, not assumed.

How should you time a purchase around the thresholds?

Because the relief is decided by price, the thresholds shape behaviour. Buyers cluster just under $800,000, vendors know it, and competition at that price point is real. Two practical consequences follow. First, if your budget sits near the line, be clear before an auction whether a bid above $800,000 is one you would make, because the first dollars over the threshold carry duty as well as price. Second, a property guided at $820,000 that you can buy at $795,000 is worth more to you than the $25,000 difference suggests, and the concession taper means the same is true, in diminishing measure, all the way to $1 million. Knowing your duty position at each price before you negotiate turns the threshold from a surprise into a bargaining tool.

Questions people ask

Do I pay duty and get it refunded later?

No. Where you are eligible, the duty is simply not payable at settlement. The application is made with the transfer, so the saving is realised at the moment cash is tightest.

Does the relief apply if I buy through a trust or company?

No. The scheme is for individuals buying in their own names. Purchases through a company or trust are assessed at the full rate regardless of the directors’ or beneficiaries’ first home status.

Is the threshold the contract price or the valuation?

Usually the contract price: duty is assessed on the dutiable value, the higher of the price paid and the market value, which for an arm’s-length purchase is the contract price. For a purchase from a relative at a discount, Revenue NSW will look at market value.

The stamp duty calculator shows your duty position at any price, with first home buyer relief applied, so you can see exactly what crossing $800,000 or $1 million costs. For the full cash picture at settlement, deposit, duty, costs, run the buying costs calculator alongside it, or get the whole picture in one free assessment.

Sources: Revenue NSW, First Home Buyers Assistance Scheme thresholds and residence requirements, and 2026-27 transfer duty rates; Revenue NSW, First Home Owner (New Homes) Grant, checked 17 October 2026.

General information only, not credit, legal or tax advice. Your situation is assessed properly before any recommendation. Government scheme details change; figures are current at the time of writing.