Buying your first home is an exciting time, and a little support along the way can significantly reduce the cost of purchasing. There are a number of exemptions, concessions, and grants available to eligible first home buyers in NSW, but which may be best suited to your individual buying journey?
We explore the different schemes available in our guide below.
1. First Home Buyer Assistance Scheme
How it works:
This scheme helps first home buyers by reducing or removing their stamp duty tax. A full exemption applies to existing or new homes valued at less than $650,000, and concessions for those between $650,000 and $800,000.
For vacant land you intend building on, stamp duty is waived when its value is less than $350,000, with concessions available for those between $350,000 and $450,000.
Eligibility:
To qualify, you need to be 18, apply as a person, and be an Australian citizen or permanent resident who has never owned or co-owned residential property in Australia.
2. First Home Buyer Choice (due to be phased out by the newly elected Labor state government in 2023)
How it works:
This scheme provides first home buyers with the choice between paying a smaller, annual property tax instead of stamp duty, so your upfront purchase costs are lower.
Eligibility:
To quality, you need to be over 18, apply as a person, and be an Australian citizen or permanent resident. You or your co-purchaser cannot have previously owned a home, or received a First Home Buyer Grant or duty concessions.
The property must be worth less than or equal to $1.5 million, and you need to occupy it within a year of purchasing for at least six continuous months.
3. Shared Equity Home Buyer Helper
How it works:
This initiative helps home buyers to purchase with as little as a 2% deposit, with the NSW Government contributing a proportion of the purchase price in exchange for equivalent equity in the property.
Eligibility:
The initiative is open to single parents and single people 50+, as well as a list of key service workers (such as nurses and police officers) with a gross income of $90,000 for singles, and $120,000 for couples.
They must be an Australian or New Zealand citizen (or a permanent Australian resident) with a minimum 2% deposit, occupy the property, and demonstrate that they require the government contribution in order to service the mortgage.
There are location requirements too, with a cap of $950,000 for properties in Sydney and major regional centres, and $600,000 in other regional areas within NSW.
4. First Home Owner's Grant (New Homes)
How it works:
Those buying or building their first home could be eligible for a $10,000 grant under this scheme - whether it be a house, townhouse, apartment, unit, or similar dwelling that is newly built, purchased off the plan, or substantially renovated.
Eligibility:
To quality, you need to be 18, apply as a person, and be an Australian citizen or permanent resident.
You or your co-purchaser cannot have previously owned a home before 1 July 2000, and must occupy your first home as your principal place of residence within 12 months of your purchase or construction, for a minimum of six continuous months.
5. First home super saver scheme
How it works:
This scheme supports first home buyers to save money for a property using their super fund, by making voluntary concessional (before-tax) and voluntary non-concessional (after-tax) contributions into it.
You can apply to have a maximum of $15,000 of your voluntary contributions from any one financial year released, up to a total of $50,000 contributions across all years, plus an amount of earnings that relate to those contributions.
Eligibility:
To qualify, you need to be 18, apply as a person, and be an Australian citizen or permanent resident who has never owned property in Australia.
6. The Home Guarantee Scheme
How it works:
This scheme includes the First Home Guarantee, Regional First Home Buyer Guarantee, and Family Home Guarantee - which all support first home buyers in different circumstances.
The First Home Guarantee supports eligible first home buyers to buy their first home with a deposit as little as 5%, with 35,000 places available each financial year.
The Regional First Home Buyer Guarantee supports regional first home buyers to purchase in a regional area, with 10,000 places available each financial year to 30 June 2025.
The Family Home Guarantee supports eligible single parents with at least one dependent child to buy a home, with a deposit as little as 2%. There are 5,000 places available each financial year to 30 June 2025.
For more information on eligibility or to apply, it's best to visit Revenue NSW. You can also seek advice from one of our property experts, who can assist you in identifying which scheme might help you achieve your property goals sooner.
