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

couple with a down sitting on the floor with their dog with boxes around them

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.

Home loan comparisons on Mozo - last updated 25 June 2022

Search promoted home loans below or do a full Mozo database search . Advertiser disclosure
  • Smart Booster Home Loan

    1 Year Discounted Variable Rate, Owner Occupier, Principal & Interest, <80% LVR

    interest rate
    comparison rate
    Initial monthly repayment
    2.74% p.a.variable for 12 months and then 3.23% p.a. variable
    3.22% p.a.

    A super low introductory rate home loan with no monthly or ongoing fees. has some of the fastest settlement times on the market. They can meet 30-day settlement timeline so you can start saving thousands, as soon as possible! Mozo award-winning online lender, friendly and local Australian based team.

  • First Home Buyer Loan

    Owner Occupier, Principal & Interest

    interest rate
    comparison rate
    Initial monthly repayment
    3.14% p.a. variable
    3.16% p.a.

    A low variable rate loan for home buyers. No establishment or ongoing fees to pay. 100% offset account included. Allows for unlimited repayments, redraws and flexible repayment options.

  • Variable Home Loan

    <80% LVR, Owner Occupier, Interest Only

    interest rate
    comparison rate
    Initial monthly repayment
    3.59% p.a. variable
    3.02% p.a.

    Fast online application with no fees. Free extra repayments and redraw facility. Min 20% deposit.


* 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, loan amount and term entered. 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.

^See information about the Mozo Experts Choice Home Loan Awards

Mozo provides general product information. We don't consider your personal objectives, financial situation or needs and we aren't recommending any specific product to you. You should make your own decision after reading the PDS or offer documentation, or seeking independent advice.

While we pride ourselves on covering a wide range of products, we don't cover every product in the market. If you decide to apply for a product through our website, you will be dealing directly with the provider of that product and not with Mozo.