A worked example
Sarah is buying her first home in Parramatta for $750,000. She's an Australian citizen, aged 29, and will live in the property. She plans to move in within 12 months and stay there continuously for at least 12 months.
Under the standard NSW transfer duty scale, duty on $750,000 is about $29,335 (base amount on the relevant band plus a percentage on the slice above it).
Sarah qualifies for the NSW First Home Buyers Assistance Scheme because the property is under $800,000 and she meets all the eligibility criteria. That means she pays $0 transfer duty, a straight saving of roughly $29,000. Properties from $800,000 to $1,000,000 attract a concessional (tapered) rate under the same scheme. The First Home Buyer Choice 'pay an annual property tax instead of stamp duty' option was wound back in mid-2023, so the traditional stamp duty exemption is the main pathway now.
State-by-state differences
- Victoria: First home buyers pay no stamp duty on properties up to $600,000, with concessions tapering to $750,000. The standard rate is 5.5% for properties over $960,000. Victoria also charges an additional 8% absentee owner surcharge for foreign buyers.
- Queensland: First home buyers on established homes get full exemption up to $700,000, tapering to $800,000. New homes and vacant land attract no duty for first home buyers from 1 May 2025 (no value cap). QLD's top marginal rate is 5.75% for properties over $1 million. Foreign buyers pay an additional 8% foreign acquirer duty.
- Western Australia: First home buyers receive full exemption up to $430,000 and concessions to $530,000. WA has a top rate of 5.15% for properties over $725,000, plus a 7% foreign buyer surcharge.
- South Australia: No stamp duty for first home buyers purchasing up to $650,000, with concessions to $700,000. The standard top rate is 5.5% above $550,000.
- Tasmania: First home concessions provide discounts up to $600,000. The standard rate caps at 4.5% for properties over $725,000.
- ACT: Progressive abolition of stamp duty continues, with concessions for all buyers. First home buyers receive additional relief.
- Northern Territory: First home owner concessions available, with a top rate of 5.45% for properties over $3 million.
Common mistakes people make
- Assuming the first home buyer exemption applies to any first purchase: The NSW exemption requires you to be an Australian citizen or permanent resident, occupy the property as your principal place of residence within 12 months, and live there continuously for at least six months. If you're buying an investment property as your first purchase, you pay full stamp duty even though it's technically your first home.
- Not factoring in the foreign buyer surcharge when using a trust or company structure: Even if you're an Australian citizen, if you purchase through a foreign-owned trust or company, the additional 8% foreign purchaser duty applies. The test looks at who controls the entity, not just who benefits from it.
- Forgetting to add surcharge purchaser duty for investment properties: If you already own residential property anywhere in Australia and buy another residential property in NSW, you may be liable for an additional 2% surcharge purchaser duty if you're not an Australian citizen or permanent resident. Many assume the 8% foreign buyer surcharge is the only extra charge.
- Assuming the First Home Buyer Choice scheme still exists: The First Home Buyer Choice annual property tax option was closed to new applicants from 1 July 2023. The primary first home buyer benefit in NSW is now the First Home Buyers Assistance Scheme (full exemption to $800,000, concession to $1,000,000).
What this calculator doesn't account for
This calculator provides standard transfer duty calculations and does not account for off-the-plan purchase concessions, which can provide duty exemptions or reductions for newly built properties bought before construction completes. It doesn't calculate commercial or industrial property duty, which uses different rate structures. The calculator doesn't cover buy-sell arrangements, business transfers including goodwill, or corporate reconstructions which may attract different duty treatments. It assumes a straightforward property transfer between unrelated parties.
We don't factor in potential refunds or adjustments for properties destroyed by natural disaster, or duty relief available for certain pensioners or transfers between family members due to relationship breakdowns. Specialist scenarios like purchases by charitable organisations, community housing providers, or government entities aren't covered. Always confirm your exact liability with Revenue NSW if your circumstances involve anything beyond a standard residential purchase.
Edge cases and nuances
Vacant land purchases by first home buyers: The NSW first home buyer exemption applies to vacant land up to $350,000, with concessional duty up to $450,000 (not the $800,000 home threshold), but only if you build a home within five years. If you don't build in time or sell the land, Revenue NSW will claw back the duty exemption plus interest. Many buyers assume the higher threshold applies to land.
Contracts exchanged before settlement: Stamp duty is calculated on the contract date, not settlement date. If you exchange on 30 June 2025 for $799,000 but settle three months later after the property is revalued at $820,000, you pay duty on $799,000. But if rates or thresholds change between contract and settlement, the rates applicable at the contract date apply.
Properties purchased with existing tenants: If you buy a property as your first home but it has tenants on a fixed lease, you must still move in within 12 months of becoming entitled to possession (when the lease ends), not 12 months from settlement. Revenue NSW can deny the exemption if you can't demonstrate intent to occupy as soon as legally possible.
Dual citizenship and foreign surcharge: Australian citizens with dual citizenship in another country are treated as Australian citizens for duty purposes, avoiding the 8% surcharge. But if the property is purchased through a foreign trust where you're a beneficiary, the surcharge may still apply based on the trust's foreign person status.
