First home buyers in NSW get land tax option - how does it work?

By Maria Gil · · 2 min read
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NSW Premier Dominic Perrottet has confirmed that eligible first-time borrowers will have the option of paying stamp duty or an annual land tax, starting 16 January, 2023.

Under this new arrangement, a first-time buyer purchasing a property up to $1.5m can opt to pay an annual fee of $400 plus 0.3 per cent of the land value. This can mean an overall saving is made, compared to the upfront cost of stamp duty.

For example, if a buyer holds their property for say, 20 years, they might be better off paying the land tax option instead of stamp duty - but it’s always important to do the numbers on such an equation to compare.

“We want to lower the barriers to owning a home for first home buyers seeking a place of their own,” said Perrottet.

"Lifting home ownership is part of this government's efforts and ambition to help families who are feeling the squeeze."

More about the new property buying rules

First-time buyers must also move into their house within 12 months of buying and live in it for six continuous months. 

First-time buyers will also have access to stamp duty exemptions for properties up to $650,000 and concessions for properties between $650,000 and $800,000.

As mentioned, first home buyers will annually pay $400 plus 0.3% of the land value for as long as they own the property.

In this annual tax option, an owner would be paying the new land tax on top of local council taxes. And moving forward, stamp duty payment would not be required if the property was sold in the future.

So far, in the newest state budget announcement, $728 million has been allocated for housing affordability and to cover a potential shortfall of revenue. 

If you’re looking to buy for the first time, check out Mozo’s first time home buyer guides. Alternatively, if you’re ready to buy you can start comparing home loans below.

Mozo may receive payment if you click products on our site. We don’t compare the entire market, but you can compare more home loans here.
Last updated 14 March 2025 Important disclosures and comparison rate warning*
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  • Promoted

    Variable Home Loan 90

    • Owner occupier
    • Principal & Interest
    • 10% min deposit
    • Offset available
    • Redraw available
    Interest rate
    5.79 % p.a.
    Variable
    Comparison rate
    5.83 % p.a.
    Initial monthly repayment
    $4,220
    Go to site
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    • Option to add an offset for 0.10% p.a.

  • Switch & Save One Year Fixed Home Loan

    • Fixed rate
    • Owner occupier
    • Principal & Interest
    • Offset available
    • Redraw available
    Interest rate
    5.54 % p.a.
    Fixed 1 year
    Comparison rate
    5.74 % p.a.
    Initial monthly repayment
    $4,106
    Go to site
    • No penalty for early payout
    • No penalty for making additional payments
    • 100% Savings Offset facility

  • Switch and Save Home Loan

    • Owner occupier
    • Principal & Interest
    • Offset available
    • Redraw available
    Interest rate
    5.64 % p.a.
    Variable
    Comparison rate
    5.75 % p.a.
    Initial monthly repayment
    $4,152
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    • No penalty for early payout
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    • 100% Savings Offset facility

  • Fixed Home Loan

    • Fixed rate
    • Owner occupier
    • Principal & Interest
    • 5% min deposit
    • Redraw available
    • Cashback
    Interest rate
    5.69 % p.a.
    Fixed 2 years
    Comparison rate
    6.00 % p.a.
    Initial monthly repayment
    $4,174
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  • Fixed Rate Home Loan

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    • Principal & Interest
    • 5% min deposit
    Interest rate
    5.74 % p.a.
    Fixed 2 years
    Comparison rate
    5.96 % p.a.
    Initial monthly repayment
    $4,197
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    • No ongoing annual fees
    • Make up to $25,000 extra repayments during a fixed period, fee free (T&Cs apply)
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  • Variable Home Loan 90

    • Owner occupier
    • Principal & Interest
    • 10% min deposit
    • Offset available
    • Redraw available
    Interest rate
    5.79 % p.a.
    Variable
    Comparison rate
    5.83 % p.a.
    Initial monthly repayment
    $4,220
    Go to site
    • RATE CUT NOW LIVE!
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    • Option to add an offset for 0.10% p.a.

  • Simple Home Loan Variable

    • Owner occupier
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    • 10-30% deposit
    • Redraw available
    Interest rate
    5.94 % p.a.
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    Comparison rate
    5.94 % p.a.
    Initial monthly repayment
    $4,289
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    • No application, ongoing or monthly fees
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  • The Complete Package Home Loan

    • Owner occupier
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    • 10-30% deposit
    • Offset available
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    Interest rate
    5.99 % p.a.
    Variable
    Comparison rate
    6.33 % p.a.
    Initial monthly repayment
    $4,312
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    • 100% offset account
    • Make additional repayments at any time
    • Get a fee-free credit card (T&Cs apply)

  • OMG Home Loan

    • Owner occupier
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    • 5-20% deposit
    • Redraw available
    Interest rate
    6.04 % p.a.
    Variable
    Comparison rate
    6.07 % p.a.
    Initial monthly repayment
    $4,335
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    • Easy online application
    • Choose Principal and Interest or Interest Only options for your bcu OMG loan
    • With redraw facility available and easy pre-approval valid for 3 months, we will make it happen. Apply online now

  • Offset Home Loan

    • Owner occupier
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    • 5-20% deposit
    • Offset available
    • Redraw available
    Interest rate
    6.14 % p.a.
    Variable
    Comparison rate
    6.17 % p.a.
    Initial monthly repayment
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