What is transfer duty in NSW and how much do I owe?

Unfortunately, when purchasing a home, it’s not just the property price that you are paying. One of the more considerable fees that buyers come across is transfer duty (formally known as stamp duty), a one-off government tax on property purchases. The good news for first home buyers in NSW is that you may be eligible for a concessional rate or exemption under the First Home Buyers Assistance Scheme (FHBAS).

Unlike the First Home Owner Grant, the FHBAS applies to:

• Existing homes
• New homes
• Vacant land on which you intend to build a home

To be eligible for the FHBAS your property or land must fit within the following thresholds:

Source: NSW Gov, First Home Buyer Assistance Scheme

How much transfer duty do I owe?

If the property you intend to purchase is over the no-charge amount, check how much transfer duty is owed by using the NSW government calculator here.

Are there any other eligibility requirements?

The other eligibility requirements include requirements about you and how you intend to use the property.

For you to be eligible for the FHBAS:

• You must be over 18
• The contract of sale must be on or after 1 July 2017 and must be for the whole property
• You cannot be a company or trust, you must be an individual
• At least one buyer must be an Australian citizen or permanent resident
• You have never owner or co-owned residential property in Australia
• You have never received an exemption or concession under this scheme
• You must move into the property within 12 months of purchasing the property, unless you are a member of the Australian Defence Force
• You must live in the property for a minimum of six continuous months, unless you are a member of the Australian Defence Force

Even if your partner or spouses’ name is not on the contract of sale, you might not be eligible if they have:

• owned or co-owned a residential property in Australia
• received an exemption or concession under this scheme

Therefore, if your partner or spouse has bought a home in their name and received benefits, you are no longer eligible.

Purchasing your first home doesn’t have to be a stressful experience. If you have experienced support around you, the process can run smoothly and without unforeseen fees.  If you have any questions regarding purchasing your first home and the conveyancing process, contact the experienced team at Donovan Oates Hannaford.