Stamp Duty Explained: How First Home Buyer Exemptions Can Save You Thousands In NSW In 2025

Why stamp duty matters for your first purchase

Stamp duty is a one off tax payable when you buy property in New South Wales. It is calculated on the contract price using state brackets that step up as values rise. For first home buyers in 2025 the First Home Buyers Assistance Scheme changes the game. If you meet the rules you can pay no duty or a reduced duty, which frees up thousands for your deposit, settlement costs, or early upgrades. We have been on both sides of this process as buyers and as advisers, and our view is simple. Learn the thresholds, confirm eligibility early, and shape your purchase strategy around the savings on offer. Throughout this guide we also explain where a builder partner helps. Brooklyn Homes is a reliable Australian home builder that offers home designs and house and land packages, and its team can help you match a design and block to both your budget and the duty rules.

The NSW rules that apply in 2025

Under the First Home Buyers Assistance Scheme you pay no transfer duty on an eligible home valued up to $800,000. If the home price sits between $800,000 and $1,000,000 a concessional duty applies on a sliding scale, so the closer you are to $800,000 the bigger the discount. For vacant residential land purchased to build your first home, duty is $0 up to $350,000 and discounted for land priced between $350,000 and $450,000. Values above these ranges do not qualify for a first home concession and the standard duty scales apply.

These thresholds cover new builds and established homes. There is no premium for buying new. That means you can compare an established dwelling with a new home build on a level tax footing inside the eligible range. For many buyers a new build through a fixed price house and land package provides cost certainty while still qualifying for the same duty relief.

Who qualifies and how to stay eligible

To use the scheme, at least 1 purchaser must be an Australian citizen or permanent resident, every applicant must be at least 18, and neither you nor your spouse can have previously owned residential property in Australia. You must intend to live in the home. Move in within 12 months of settlement or completion and live there for a continuous 12 months. Keep evidence of occupancy such as utility bills and electoral roll updates.

If you buy with a friend or family member who is not a first home buyer, the shared equity rules may allow you to claim a concession on your eligible share as long as your interest is at least 50 percent. If you buy with a spouse who is not eligible the concession will not apply, so plan the contract structure carefully. Always have your conveyancer confirm the eligibility settings against your exact scenario before exchange.

How much you could save in real terms

The easiest way to understand the benefit is to compare typical duty bills with and without the scheme. The numbers below are indicative and assume you qualify as a first home buyer.

• $600,000 home. A standard buyer would face a duty bill in the low $20,000s. A first home buyer pays $0, saving more than $20,000.
• $800,000 home. The maximum benefit. Duty drops from around $30,000 to $0, saving about $30,000.
• $900,000 home. A standard buyer might pay mid $30,000s. A first home buyer at the concessional rate pays around the high teens, saving roughly $15,000.
• $950,000 home. Savings taper as you approach $1,000,000 but can still be $7,000 to $8,000 compared with full duty.

For vacant land the savings are smaller in dollar terms but still meaningful, especially when combined with build cost planning.

Brooklyn Homes and the first home buyer path

A builder partner cannot change the law, but the right partner can make the law work for you. Brooklyn Homes offers contemporary home designs and house and land packages that map cleanly to the NSW thresholds. We sit down with buyers to confirm budget bands, then we shortlist blocks and designs that land inside the $800,000 full exemption range where possible. Where a site requires extra site works or upgrades, we plan inclusions to keep the turnkey price inside your target so duty outcomes stay intact. Our documentation is clear, with fixed price contracts and transparent allowances. That makes conversations with your lender and conveyancer straightforward. We also coordinate title timing and build schedules so your residence requirement is easy to meet once keys are in hand.

The fine print you should respect

The scheme is built for owner occupiers. If you rent the property out from day 1, the concession is at risk. If you buy off the plan or select a house and land package, completion may fall months after exchange. That is fine as long as you move in within 12 months of completion. Keep an eye on value creep. If upgrades push the price above a threshold, duty relief can fall away. Finally, ensure all applicants meet the rules. A forgotten previous ownership by a spouse or an old name on a title can derail eligibility.

One practical example from the field

A couple with a combined income of $165,000 targeted a new home build in Western Sydney. Their budget for house and land was $790,000. By choosing a Brooklyn Homes design with included flooring, air conditioning, and landscaping, the turnkey contract stayed at $788,500. As first home buyers in 2025 their duty bill was $0. The funds that would have gone to duty covered legal fees, loan setup costs, and a contingency buffer for furnishings. Because titles were due in 4 months and construction in 6 to 8 months, they lined up their move in to occur within the 12 month window without stress.

Your 7 step action plan to lock in the savings

1. Confirm you are a first home buyer. Check that neither you nor your spouse has owned residential property and that at least 1 of you is a citizen or permanent resident.
2. Set your budget bands. Target a primary price band up to $800,000 and a secondary band up to $1,000,000 with the concession. Include a buffer for site costs and lender fees.
3. Choose product and location. Compare an established dwelling with a new home build. If you build, use house and land pricing that keeps the total inside your preferred band.
4. Get pre approval. Ask your broker or lender to model repayments and confirm that your deposit plus duty position matches the scheme outcomes.
5. Validate eligibility with your conveyancer. Before exchange, have eligibility and any shared equity scenario confirmed in writing for your exact contract.
6. Lock selections without price drift. Finalise inclusions early. Avoid add ons that push your price past an eligibility threshold.
7. Plan move in. Aim to occupy within 12 months of settlement or build completion. Keep records such as utilities and electoral roll updates for the continuous 12 month period.

Common mistakes to avoid

• Exchanging before checking eligibility, then discovering a past property interest disqualifies a spouse.
• Letting upgrades creep the contract price past $800,000 or $1,000,000 and losing a concession that was assumed in the budget.
• Missing the occupancy requirement because of an avoidable delay in furniture or utility connections. Plan your timeline and actions.

How Brooklyn Homes helps you avoid those pitfalls

We map your total price to the most favourable threshold, present a fixed price inclusions list, and coordinate with your broker and conveyancer so duty assumptions are locked in before you sign. Our house and land packages are matched to titled or near titled lots where possible, which shortens your pathway to occupancy. Our site assessments reduce the risk of unplanned costs. When we say fixed price, we detail what is included so you are not surprised later, and we keep you informed so the 12 month occupancy clock is easy to meet.

Final Thoughts

The NSW first home duty settings in 2025 reward careful planning. If you know the thresholds, confirm eligibility, and structure your purchase with discipline, you can bank meaningful savings and start ownership in a stronger position. We have seen buyers transform their budgets by aiming for $800,000 or by using the concession range wisely. A partner like Brooklyn Homes adds certainty through fixed price house and land packages and clear guidance, so you are not leaving thousands on the table or missing a key rule at the finish line. Use the steps in this guide, ask questions early, and keep your focus on the duty outcomes as you choose your path to a first home.

FAQs

What are the 2025 thresholds for first home buyer duty relief in NSW?

Homes up to $800,000 are fully exempt from duty if you qualify. Homes priced from $800,000 to $1,000,000 receive a concession that reduces duty on a sliding scale. Vacant residential land is duty free up to $350,000 with a concession from $350,000 to $450,000.

Do I need to live in the home to keep the concession?

Yes. Move in within 12 months of settlement or completion and live there for a continuous 12 months. Keep proof such as utilities and electoral roll updates. If you do not meet the occupancy rule you can be required to pay the duty you avoided.

Can I buy with a parent who is not a first home buyer and still get a concession?

Often yes. If your share is at least 50 percent and you meet the other rules, you can receive the concession on your eligible portion while the ineligible co buyer pays duty on their share. If the ineligible co buyer is your spouse, the concession does not apply.

Does building new change the duty outcome?

No. The thresholds apply to new and established homes equally. If you buy vacant land to build, the separate land thresholds apply. A house and land package helps you keep the total within $800,000 or within the concession band if needed.

How do Brooklyn Homes house and land packages help first home buyers?

We align block selection and home design to your budget band, provide fixed price contracts with clear inclusions, and coordinate timing so your occupancy requirement is easy to satisfy. This supports lender approval and protects your duty position.

What costs still apply even if my duty is $0?

You will still pay lender fees, legal costs, inspection costs if buying established, title registration, settlement adjustments, insurance, and moving costs. Plan for these so the no duty outcome flows straight into a stronger cash buffer.

What if my contract price ends just above $800,000?

Options include negotiating price, adjusting inclusions, or selecting a comparable lot or facade that lowers the total. Small changes can move you back into the full exemption band and save around $30,000 in duty.

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