In NSW, first home buyers may no longer have to pay stamp duty

Collage of a first home buyer counting coins going into the bank.

Good news! If you’re a first home buyer in New South Wales, some new proposed legislation may mean you no longer have to pay stamp duty when purchasing a property, up to a certain value. 

So what do these changes mean for the property market – and the cost of financing a home loan?

NSW Labor makes good on election promise to support first home buyers

Collage of two people shaking hands over a desk, like a home sale.

Stamp duty is a compulsory government charge you incur whenever buying a home. Essentially, it’s a tax on the transfer of property from one owner to another. It can be a significant upfront cost for buyers entering the market, on top of any other fees or home loan charges they must pay – often stacking up to $20,000 or more.

Instead, the new proposed scheme from NSW Labor would do away with stamp duty for first home buyers altogether, so long as they’re purchasing a home up to $800,000 in value. Significant stamp duty concessions will also apply for those buying homes worth up to $1 million. 

The changes would deliver on an election promise from NSW Labor Premier Chris Minns, who made the announcement on Monday. 

“This is a fairer and simpler system to ensure more first home buyers have a chance of owning their first property,” he explained, comparing the new scheme to last year’s annual land tax over stamp duty choice offered by the previous Coalition government. 

“I understand the stress of trying to purchase your first home,” says Minns. “I want more singles, couples and families realising this dream.”

This legislation would work in tandem with the new Federal Budget, which expanded access to the First Home Owner Grant to any two persons buying property together and non-first home buyers who haven’t owned property in at least ten years. 

Labor also announced it will work to repeal the Coalition’s annual land tax policy, which gave homeowners the choice to opt into paying an annual land tax instead of stamp duty. If passed, this would do away with the tax scheme for new buyers: the 5,000 properties already locked into it can still pay the land tax until they sell.

So could these changes help first home buyers get a foot in the door? 

Critics argue that reducing barriers to first home buyers, such as stamp duty, will only further drive up property prices – which in turn only locks more people out of the market. 

However, delivering genuine housing reform without impacting home values is incredibly tricky. With the Reserve Bank of Australia likely to hold rates steady this year, the cost of housing finance is set to take off anyway. 

Eliminating drag on someone’s home-buying journey, such as stamp duty, could simplify the process for buyers with the most stacked against them, especially rising interest rates.

“More first home buyers will pay no tax under Labor’s scheme instead of a land tax,” explains NSW Treasurer Daniel Mookhey.

“The new thresholds for stamp duty exemptions and concessions are a simpler and fairer way to help more first home buyers than the property tax, which helped a smaller cohort of first home buyers.”

Compare low interest rate home loans in the table below.

Compare first home buyer loans - last updated 26 May 2024

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

    Package, Owner Occupier, LVR<60%, Principal & Interest

    interest rate
    comparison rate
    Initial monthly repayment
    6.14% p.a. variable
    6.39% p.a.

    Ability to open up to 10 offset accounts per loan account. Fast online application. Linked Debit Mastercard® with fee-free access at ATMs across Australia. Package a credit card with your home loan and the annual card fee will be waived (T&Cs apply). 40% deposit required.

    Compare
    Details
  • Discount Variable Home Loan

    Owner Occupier, LVR<70%

    interest rate
    comparison rate
    Initial monthly repayment
    5.99% p.a. variable
    6.01% p.a.

    A low rate home loan for owner-occupiers packed with great features including unlimited extra repayments, free online redraw, no application or monthly admin fees. Rate will vary depending on LVR. Winner of a Mozo Experts Choice 2024 Low Cost Home Loan Award^

    Compare
    Details
  • Fixed Rate

    Owner Occupier, Principal & Interest, <80% LVR

    interest rate
    comparison rate
    Initial monthly repayment
    6.54% p.a.
    fixed 2 years
    7.10% p.a.

    Enjoy up to $3000 cashback for eligible first home buyers and $2000 cashback for refinancers on eligible home loans with the ANZ Fixed Rate Home Loan. Get the security of repayment certainty with a competitive locked in rate. No ongoing fees to pay. Offset account on 1-year fixed loans ($10/month fee applies). Interest-only payments allowed.

    Compare
    Details
  • Basic Home Loan

    Owner Occupier, LVR<60%, Principal & Interest

    interest rate
    comparison rate
    Initial monthly repayment
    6.14% p.a. variable
    6.16% p.a.

    Enjoy a low rate home loan with $0 application fee and $0 ongoing fees. Flexibility to split your loan and set different repayment types. Fee free redraw from your loan using online banking. Flexible ways to repay. 40% Deposit required.

    Compare
    Details
  • Fixed Rate Loan with Orange Advantage

    Orange Advantage, Owner Occupiers, Principal & Interest, LVR <80%

    interest rate
    comparison rate
    Initial monthly repayment
    6.09% p.a.
    fixed 2 years
    6.16% p.a.

    Know exactly what your repayments will be, and you can fix your rate for up to 5 years. No monthly, annual fee or transaction fees. Free additional repayments (less than $10,000 p.a.). Valid for loans of $50,000 up to $2,000,000.

    Compare
    Details
  • Elevate

    Owner Occupier, Principal & Interest, <80% LVR

    interest rate
    comparison rate
    Initial monthly repayment
    6.09% p.a. variable
    6.20% p.a.

    Get competitive rates on loan terms of 5 to 30 years with the Aussie Elevate Home Loan. Structure your loan with up to five splits. Make additional repayments (T&Cs apply). Offset accounts available. Unlimited redraw using your online banking account. Choose from weekly, fortnightly or monthly payments For loan amounts from $10,000 to $5 million.

    Compare
    Details
  • Mortgage Simplifier

    LVR<80%, Owner Occupier, Principal & Interest

    interest rate
    comparison rate
    Initial monthly repayment
    6.14% p.a. variable
    6.17% p.a.

    Get a competitive variable rate with ING’s Mortgage Simplifier. Free extra repayments, no monthly or annual fees. Freedom to make free extra repayments or redraws.

    Compare
    Details
  • Basic Home Loan

    Fixed, Owner Occupier, Principal & Interest, LVR<70%

    interest rate
    comparison rate
    Initial monthly repayment
    6.25% p.a.
    fixed 3 years
    6.20% p.a.

    No upfront or ongoing fees. Free extra repayments and redraw facility. Option to earn Qantas points. Min 30% deposit required. Borrow up to $750,000.

    Compare
    Details
  • Variable Home Loan 90

    Principal and Interest, LVR <90%

    interest rate
    comparison rate
    Initial monthly repayment
    6.04% p.a. variable
    6.06% p.a.

    Affordable home loan rate for buyers or refinancers. No monthly or ongoing fees. Option to add an offset for 0.10%. Access to savings with unlimited redraws available. Minimum 10% deposit required.

    Compare
    Details

* 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.

^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.