Understanding Stamp Duty and First Home Buyer Benefits in New South Wales
- Tanya Spencer
- Mar 16
- 2 min read
Updated: 1 hour ago
When purchasing property in New South Wales (NSW), one of the significant costs to consider is stamp duty, also known as transfer duty. This tax is levied by the State Government on property transactions. However, if you're a first home buyer, there are benefits and exemptions available that can reduce or even eliminate this expense.
What Is Stamp Duty?
Stamp duty is a tax imposed on the sale of property, calculated based on the property's purchase price or market value, whichever is higher. The amount payable increases with the property's value, following a tiered rate system.
How Is Stamp Duty Calculated in NSW?
As of 1 July 2024, the standard transfer duty rates in NSW are:
$0 to $17,000: $1.25 for every $100 (minimum $20)
$17,000 to $36,000: $212 plus $1.50 for every $100 over $17,000
$36,000 to $97,000: $497 plus $1.75 for every $100 over $36,000
$97,000 to $364,000: $1,564 plus $3.50 for every $100 over $97,000
$364,000 to $1,212,000: $10,909 plus $4.50 for every $100 over $364,000
Over $1,212,000: $47,295 plus $5.50 for every $100 over $1,212,000
For properties valued over $3,636,000, a premium rate applies:
Over $3,636,000: $182,389 plus $7.00 for every $100 over $3,636,000
These rates are subject to change, so it's essential to verify the current rates at the time of your property purchase.
First Home Buyer Benefits
To assist first home buyers, the NSW government offers the First Home Buyers Assistance Scheme (FHBAS), which provides exemptions or concessions on stamp duty. There is eligibility criteria to be able to apply. If yu require any assistance, please feel free to contact us.
Calculating Your Stamp Duty
To determine the exact amount of stamp duty payable, you can use the Revenue NSW Transfer Duty Calculator. This tool provides an estimate based on the property's value and your eligibility for exemptions or concessions.
Final Thoughts
Understanding stamp duty and the available concessions is crucial when planning your property purchase in NSW. Taking advantage of the benefits for first home buyers can significantly reduce your upfront costs, making the dream of homeownership more attainable.
Note: The information provided is based on the latest available data as of February 2025. Always consult with a conveyancer for personalized advice.
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