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.

Last updated 18 May 2025 Important disclosures and comparison rate warning*
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  • Promoted

    Variable Home Loan

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  • Promoted

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    • Principal & Interest
    • 10-20% deposit
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  • Fixed Rate Home Loan

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    • 5% min deposit
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    5.49 % p.a.
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  • Fixed Home Loan

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

    • Owner occupier
    • Principal & Interest
    • 5% min deposit
    • Redraw available
    Interest rate
    5.74 % p.a.
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    Comparison rate
    5.79 % p.a.
    Initial monthly repayment
    $4,197
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    • No monthly or annual fees
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  • Fixed Home Loan

    • Fixed rate
    • Owner occupier
    • Principal & Interest
    • 10% min deposit
    • Offset available
    • Redraw available
    Interest rate
    5.74 % p.a.
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    5.81 % p.a.
    Initial monthly repayment
    $4,197
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    • $0 application fee to pay
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  • Variable Home Loan

    • Owner occupier
    • Principal & Interest
    • 10% min deposit
    • Offset available
    • Redraw available
    Interest rate
    5.78 % p.a.
    Variable
    Comparison rate
    5.82 % p.a.
    Initial monthly repayment
    $4,215
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    • $0 application fee to pay
    • Unlimited additional repayments
    • Apply in as little as 15 minutes

  • Variable Home Loan 90

    • Owner occupier
    • Principal & Interest
    • 10% min deposit
    • Offset available
    • Redraw available
    Interest rate
    5.79 % p.a.
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    Initial monthly repayment
    $4,220
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  • OMG Home Loan

    • Owner occupier
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    Interest rate
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    Initial monthly repayment
    $4,335
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    • Easy online application
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    • With redraw facility available and easy pre-approval valid for 3 months, we will make it happen. Apply online now

  • Home Loan

    • Owner occupier
    • Principal & Interest
    • 10-20% deposit
    • Redraw available
    Interest rate
    6.13 % p.a.
    Variable
    Comparison rate
    6.14 % p.a.
    Initial monthly repayment
    $4,377
    Go to site
    • Offset and non-offset options for flexible payments
    • No application and monthly account keeping fees
    • Get up to $4,000 cashback (T&Cs apply)

  • Offset Home Loan

    • Owner occupier
    • Principal & Interest
    • 5-20% deposit
    • Offset available
    • Redraw available
    Interest rate
    6.14 % p.a.
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    6.17 % p.a.
    Initial monthly repayment
    $4,382
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  • Home Loan with Offset

    • Owner occupier
    • Principal & Interest
    • 10-20% deposit
    • Offset available
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    Interest rate
    6.34 % p.a.
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    Initial monthly repayment
    $4,475
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  • Basic Variable Home Loan

    • Owner occupier
    • Principal & Interest
    • 10-20% deposit
    • Redraw available
    Interest rate
    6.64 % p.a.
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    6.67 % p.a.
    Initial monthly repayment
    $4,617
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  • Offset Variable Home Loan

    • Owner occupier
    • Principal & Interest
    • 10-20% deposit
    • Offset available
    • Redraw available
    Interest rate
    7.49 % p.a.
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* WARNING: This comparison rate applies only to the example or examples given. Different amounts and terms will result in different comparison rates. Costs such as redraw fees or early repayment fees, and cost savings such as fee waivers, are not included in the comparison rate but may influence the cost of the loan. The comparison rate displayed is for a secured loan with monthly principal and interest repayments for $150,000 over 25 years.

** Initial monthly repayment figures are estimates only, based on the advertised rate. You can change the loan amount and term in the input boxes at the top of this table. Rates, fees and charges and therefore the total cost of the loan may vary depending on your loan amount, loan term, and credit history. Actual repayments will depend on your individual circumstances and interest rate changes.

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