Buying property in New South Wales comes with substantial upfront costs, and stamp duty (also known as transfer duty) is typically one of the largest. For buyers navigating the Sydney property market, understanding stamp duty exemptions and concessions can mean the difference between stretching your budget thin and securing a strategic investment.
What is stamp duty and why does it matter in New South Wales?
Stamp duty is a state government tax applied when property ownership transfers from one party to another. In NSW, this applies to residential properties, vacant land and commercial real estate. The tax is calculated based on the dutiable value of the property – usually the purchase price or market value, whichever is higher.
As the table below shows, the financial impact can be considerable. As a progressive tax, stamp duty rates increase across different price brackets, meaning a modest increase in purchase price can push you into a higher duty range.
The good news is that there are exemptions and concessions that can reduce this amount, depending on what type of buyer you are and how you intend to use the property.
Who is eligible for stamp duty exemptions in New South Wales?
NSW offers several ways to reduce or eliminate stamp duty obligations, though eligibility requirements are strict and specific.
First home buyers
First home buyers in NSW may be eligible for a full exemption or reduced rate of transfer duty, or a grant for a new home.
The First Home Buyer Assistance Scheme (FHBAS) offers a full or partial exemption from transfer duty. The First Home Buyer Assistance scheme also applies to vacant land, but these have different value thresholds.
Other exemptions
While some states have stamp duty exemptions for pensioners or off-the-plan properties, NSW does not. It does, however, offer concessions or exemptions for other groups.
Properties transferred between family members may qualify for an exemption or concession on stamp duty. This includes transfers between married or de facto couples where the property being transferred is the family home or vacant land intended for the family home. It also includes transfers between married or de facto couples after a divorce or break-up.
Beneficiaries of a deceased estate may qualify for a concessional rate of $100. This will apply if the property was left to you in the deceased’s will, or the deceased did not have a will, and therefore the estate is being handled under the rules of intestacy (the process of passing away without a will).
If the beneficiaries of the will choose to gift or sell their portion of the property to another beneficiary, normal stamp duty rates will apply.
First home buyer stamp duty concessions in New South Wales
To be eligible for the First Home Buyers Assistance Scheme:
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The purchase must be for a new or existing home, or vacant land in NSW
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The property value must be within the threshold amounts (see table below)
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The transfer must be for the whole property
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You must be an individual (not a company or trust)
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You must be over 18
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You and your spouse or partner must never have owned or co-owned residential property in Australia
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You and your spouse or partner must never have previously received an exemption or concession under the scheme
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At least one of the first home buyers must be an Australian citizen or permanent resident
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You must meet the requirements for living in the property.
To meet the residency requirements, you must move into the property within 12 months from settlement and live there as your principal place of residence (PPR) for at least 12 continuous months. Some exemptions apply for members of the Australian Defence Force who are deployed elsewhere and can’t meet these requirements.
The scheme applies to both new and existing properties.
The FHBAS also applies to vacant land, but the thresholds differ. For vacant land, you will receive a full exemption on transfer duty for land valued less than $350,000, and a concessional rate will apply for land valued between $350,000 and $450,000.
How much can you actually save? Let’s say, for instance, you purchase an apartment at Sydney’s median unit price ($886,379 in October 2025 according to Cotality). With no exemptions or concessions, your transfer duty would be roughly $34,300.
However, using Revenue NSW’s FHBAS calculator, we can see that your savings would be more than $17,000, making this a significant financial gain.
Or, what about a buyer who is looking for a regional home? In northern NSW’s Lismore, for example, a median-priced house costs around $492,000 according to Cotality. At this price, a first home buyer may qualify for a full exemption – saving the $16,552 transfer duty other buyers must pay!
First Home Owners Grant
First home buyers in NSW can also apply for the First Home Owner Grant. This is a once-off payment of $10,000 towards the purchase of a new home. That means a home that no one has lived in before, with a value of up to $750,000.
These two schemes can be used together, adding extra savings for buyers purchasing newly built homes.
Off-the-plan stamp duty in New South Wales
Some states offer exemptions or concessions to buyers purchasing an off-the-plan property. However, in NSW you may only apply for a deferral of this payment. If you are buying off the plan and can meet the eligibility requirements, you will not have to pay transfer duty until:
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15 months after you enter into the agreement to buy or transfer a property or,
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If the contract is completed within 15 months, at the time of completion or the handover of the property.
If you apply for the off-the-plan deferral of transfer duty, you must satisfy the following residence requirements. That means you must move into the home within 12 months of settlement and live in the property as your PPR for at least 12 continuous months.
If you intend to purchase the property as an investment, you are not eligible for the duty deferral and must pay the full stamp duty within three months of the contract date.
How to apply for stamp duty exemptions in New South Wales
The application process is handled through Revenue NSW, the state's official body.
You must first be certain of which benefit you are applying for – an exemption, a concession or a duty deferral for an off-the-plan purchase.
Next, gather the necessary documents. This typically includes the contract of sale, proof of identity, a completed application form and a completed Purchaser/Transferee Declaration. For first home buyers, additional evidence to confirm you have never owned property may be required.
Your legal representative (solicitor or conveyancer) will usually manage the lodgement of the application forms and supporting documents through the digital system. The stamp duty payment, or the relevant deferred duty payment, must be made directly to Revenue NSW.
Common mistakes and things to consider when applying for stamp duty exemptions in NSW
Even eligible buyers can lose access to concessions through errors or misunderstandings about requirements. Common pitfalls include:
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Exceeding the property value threshold for the exemption you are applying for
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Buying an investment property instead of a PPR when the exemption is tied to occupancy
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Failing to live in the property for the minimum required period
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Missing lodgement deadlines
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Incorrectly completing forms or supporting documents
Some buyers also forget that stamp duty exemptions do not cover other property-related costs such as conveyancing, building inspections and lender fees. Proper planning helps you understand your total upfront costs rather than focusing on duty alone.
How AXTON Finance can help you navigate stamp duty exemptions in New South Wales
Understanding the NSW stamp duty landscape is important, especially if you are upgrading, refinancing or buying interstate. AXTON Finance works with buyers who want clear guidance without confusion. We help you structure your loan, plan your cash flow and understand your full property costs so you can make confident decisions.
Thinking about a property purchase in NSW or want advice on how stamp duty exemptions affect your borrowing strategy? Speak with AXTON Finance today for tailored advice and a lending strategy designed to support your next move. Call 03 9939 7576, email getabetterrate@axtonfinance.com.au or get in touch today.