Buying your first home in NSW? The transfer duty concession under the First Home Buyers Assistance Scheme has rolled forward for the 2026-27 year, and the thresholds haven't moved. That's good news if you're mid-search, but it also means the same traps apply. I still see buyers exchange contracts without checking eligibility properly, then scramble at settlement when the duty bill doesn't match what they expected.

Here's what's current, what the numbers actually mean, and the checklist to run through before you sign anything.

How the NSW first home buyer duty scheme works

The First Home Buyers Assistance Scheme (FHBAS) gives eligible first home buyers relief from transfer duty, commonly still called stamp duty, on their purchase. There are three tiers to understand:

  • Full exemption - no transfer duty at all on new or existing homes valued up to $800,000, and on vacant land intended for your first home valued up to $350,000.
  • Concessional (reduced) duty - a lower rate of duty on homes priced between $800,000 and $1 million. The duty payable increases progressively as the price climbs toward $1 million.
  • No concession - above $1 million, standard transfer duty applies with no first home buyer relief.

These thresholds have been rolled forward unchanged for deals from 1 July 2026, so if you were quoted figures last financial year, they still hold. Revenue NSW reviews these periodically, so it's worth confirming the current numbers directly before you rely on them for a specific purchase.

Full exemption vs reduced duty: what it actually means for you

A full exemption means exactly that. If your purchase price sits at or under the threshold and you meet the eligibility rules, you pay zero transfer duty on that transaction. It's one of the largest single costs removed from a first home purchase in this state.

Reduced duty is different. You still pay something, just less than the standard rate a non-first-home-buyer would pay at the same price point. The saving shrinks the closer your purchase price gets to the top of the concession band. Buyers sometimes assume "concession" means "small amount." It doesn't always. Get your conveyancer or solicitor to run the actual duty estimate for your specific price before you factor it into your budget.

Above the upper threshold, there's no first home buyer relief at all. You're paying the same transfer duty as any other buyer. This is where I most often see people caught out, they've budgeted assuming some concession applies, when their purchase price has quietly crept over the line during a bidding process.

The First Home Owner Grant is a separate thing entirely

It's easy to conflate the duty concession with the First Home Owner Grant (FHOG). They're not the same scheme. The FHOG is a cash grant, currently available for new homes under its own price cap, separate from the transfer duty exemption. You might be eligible for the duty concession without qualifying for the grant, or vice versa, depending on whether you're buying new or established, and the specific price of the property.

If your plan relies on both, check both sets of eligibility rules independently. Don't assume qualifying for one automatically means you qualify for the other.

The occupancy requirement people forget

Getting the duty concession isn't just about price. You generally need to move into the property within 12 months of settlement and live there as your main residence for a continuous period, commonly six months. This applies regardless of whether you got a full exemption or reduced duty.

This trips up buyers who plan to rent the property out initially, do renovations before moving in, or who are buying for a family member rather than themselves. If your plan doesn't involve moving in within the required window, you need to understand the consequences before you exchange, not after Revenue NSW asks questions later.

Before you exchange: the practical checklist

Work through this before you sign a contract, not after.

  • [ ] Confirm your purchase price against the current thresholds. Check whether you're inside the full exemption band, the reduced duty band, or above both.
  • [ ] Check every purchaser's eligibility, not just your own. If you're buying with a partner, sibling, or friend, everyone on the title generally needs to meet the first home buyer criteria for the concession to apply to the full purchase.
  • [ ] Work out your occupancy plan. Know when you'll move in and how long you'll stay, and make sure it fits within the required timeframe.
  • [ ] Separate the duty concession from the FHOG in your budgeting. Confirm which one (or both) you actually qualify for, rather than assuming.
  • [ ] Get a duty estimate from your solicitor or conveyancer based on your actual likely purchase price, especially if you're bidding at auction and the final price is uncertain.
  • [ ] Gather your identity and ownership history documents early - proof of identity and evidence you (and any co-purchasers) haven't previously owned property in Australia.
  • [ ] Ask about vacant land rules separately if you're buying land to build on, since the threshold and conditions differ from established or new homes.

Why this matters more in a rising market

Thresholds staying flat while property prices move is the real risk here. A purchase that would have qualified for a full exemption a couple of years ago might now sit in the reduced duty band, or even above the concession entirely, simply because prices in your target suburb have moved. This isn't a criticism of the scheme, it's just the practical reality of fixed dollar thresholds in a market that doesn't stay fixed.

If you're searching in a price range close to one of the thresholds, this is worth factoring into your search strategy. Sometimes the difference between a property $20,000 under the exemption cap and one just over it is a meaningfully different total cost once duty is added back in.

My take

The scheme rolling forward unchanged is a genuinely good outcome for buyers this year, it means the planning you've already done still applies. But "unchanged" also means the same mistakes are still there to make. The buyers who get burned aren't the ones who don't qualify, they're the ones who assumed they qualified without checking, then found out at settlement that their price crept over a threshold or their occupancy plan didn't fit the rules.

Check the numbers against your actual purchase, not a rough guess. It's a five-minute conversation with your conveyancer that can save a genuinely large amount of money, or at least stop an unpleasant surprise landing in your lap after you've already exchanged.

Frequently asked questions

What is the NSW First Home Buyers Assistance Scheme?

It's a Revenue NSW scheme that gives eligible first home buyers a full exemption from transfer duty on homes under a set price threshold, and a reduced duty rate on homes priced between that threshold and an upper cap. Above the upper cap, no concession applies and standard transfer duty is payable.

What is the current full exemption threshold in NSW?

New and existing homes valued up to $800,000 qualify for a full exemption from transfer duty under the scheme. Vacant land intended for a first home qualifies for full exemption up to $350,000.

What happens between $800,000 and $1 million?

Homes priced between $800,000 and $1 million attract a concessional, reduced rate of transfer duty rather than a full exemption. The duty payable increases progressively as the price approaches $1 million. Above $1 million, no first home buyer duty concession applies.

Do I need to live in the property to get the concession?

Yes. You generally need to move into the property within 12 months of settlement and live there as your main residence for a continuous period, usually at least six months. This is separate from, and in addition to, any First Home Owner Grant occupancy requirement.

Is the First Home Owner Grant the same as the duty exemption?

No. The First Home Owner Grant is a separate cash payment available for new homes under its own price cap. The First Home Buyers Assistance Scheme is the transfer duty exemption or concession, which can apply to new or existing homes. You may be eligible for one, both, or neither, depending on your circumstances.

What documents do I need before I exchange contracts?

You'll typically need proof of identity, evidence you and any co-purchasers haven't previously owned property in Australia, your contract of sale once available, and your solicitor or conveyancer's confirmation of the duty estimate. Sorting these before you exchange avoids delays at settlement.

Can I still apply if I am buying with someone who has owned property before?

Generally, all purchasers on the title need to meet the first home buyer eligibility criteria for the concession to apply to the full purchase. Buying with someone who has previously owned property usually affects your eligibility, so check your specific situation before you exchange rather than after.

Andrew Romano is a Chartered Accountant and SMSF Specialist based in Sydney. He works with high-income individuals, business owners and investors on tax planning, structuring and self-managed super funds.

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