NSW First Home Buyers Choice Scheme

NSW First Home Buyers Choice Scheme


An initiative from the NSW state government offers first home buyers a waiver of stamp duty for property purchases up to 1.5 million by paying an annual land tax instead. 

This initiative is designed to boost new home purchases and help with affordability as we have seen home ownership decline from around 70% in the 1990s down to 64% today. 

Our younger generation is experiencing the steepest decline in home ownership. Many are stating that with the rise in house prices and interest rates, being able to come up with the upfront costs has become a barrier. 

By removing up front stamp duty the average property price is 1.17 million in NSW, so the stamp duty on this would be around $45,600 paid upon purchase of your home which can be quite a lot to factor in in addition to a deposit of up to 20% 

There is currently a first homeowner scheme available for the purchase of properties of $800k or less where stamp duty is waived for eligible applicants. This will remain in place. 

Given that the average house price in NSW is 1.17 million, this newly launched scheme capped at 1.5M purchase price will help a larger number of first homeowners.


Who qualifies for this scheme? 

  • First-time homeowners who are Australian citizens or permanent residents over the age of 18. 
  • Those who are not otherwise eligible for NSW Government stamp duty concessions. 
  • Have not previously owned or co-owned residential property in Australia or previously received a first home buyer grant or stamp duty concessions; this includes the applicant’s spouse if also on the loan. 
  • The property being purchased must be worth less than or equal to 1.5 million 
  • You must move into the home within 12 months of purchasing it and live in it continuously for 6 months. 

So, what is the annual land tax based on? 

Estimate based on the land value of the purchased property There is a handy calculator you can use for this equation: https://www.apps09.revenue.nsw.gov.au/erevenue/calculators/fhba.php

On the average house worth just over a million, you would expect to pay around $3,400 annually for land tax. A remarkable difference from the estimated $45k of stamp duty required upfront. 

Can people apply for this scheme in conjunction with other first-time homebuyer schemes?  

Yes, you can, as long as you are eligible. For example, in most cases, you will still be able to receive the First Homeowners Grant (FHOG) and the First Home Guarantee while paying no stamp duty. 

If you or a friend or family member are looking to buy your first home, we highly recommend speaking with one of our award-winning brokers here at iChoice, not only to find out which schemes you will be eligible for, but also to have access to hundreds of lenders to find you the most suitable finance offering while also being set up with a sound financial structure in mind.