Comparison of benefits
Options available to first homebuyers following introduction of NSW Home Builders Bonus
The NSW state government offers two schemes that provide for a total exemption from duty or a reduction in duty for the purchase of a new home and vacant land.
These are the First Home - New Home Scheme and the NSW Home Builders Bonus.
The NSW state government also provides the First Home Owner Grant (FHOG) to provide assistance for individuals buying their first home.
These schemes are administered in NSW by the Office of State Revenue (OSR) and have specific eligibility requirements. All schemes require the completion of an application form.
The following information should be used when considering which scheme provides a first homebuyer with the greatest benefit. These suggestions are specific to the needs of the first homebuyer and any considerations for exemption or a reduction in duty should be discussed with the professional assisting with your purchase.
The NSW Home Builders Bonus (HBB) and First Home - New Home (FHNH) schemes only apply to new homes.
Vacant land
| Price Range | Scheme | Reduction in Duty |
|---|---|---|
Up to $400,000 | Apply HBB | Full Exemption |
$400,000 to $450,000 | Apply FHNH | Partial Exemption |
A full exemption of duty is available under the NSW Home Builders Bonus provided building will commence within 26 weeks from the date of completion of the Agreement for Sale. If this requirement cannot be met, the first homebuyer may still apply for the First Home - New Home Scheme. This would provide a full exemption up to the purchase price of $300,000, and a partial exemption up to $450,000.
The First Home Owner Grant does not apply to the purchase of vacant land but does apply to people building their first home where the total value of the property (land and improvements) will not exceed $835,000. Read more about the First Home Owner Grant in our First Home Benefits factsheet.
Off the plan purchase (before construction commences)
| Price Range | Scheme | Reduction in Duty |
|---|---|---|
Up to $600,000 | Apply HBB | Full Exemption |
In order to meet the requirements of the NSW Home Builders Bonus the first homebuyer must provide evidence that building has not commenced at the date of the agreement for sale.
The first homebuyer should also review the eligibility requirements for the First Home Owner Grant and make application if appropriate.
Off the plan purchases (after construction commences) and purchases of new homes
| Price Range | Scheme | Reduction in Duty |
|---|---|---|
Up to $500,000 | Apply FHNH | Full Exemption |
Above $500,000 and up to $570,500 | Apply FHNH | Partial Exemption |
Above $570,500 and up to $600,000 | Apply HBB | 25% Concession |
If you are a first homebuyer and the purchase price of the new home does not exceed $570,500 you should apply under the First Home - New Home Scheme. This will provide an exemption from duty for homes up to $500,000 and a partial exemption for homes between $500,000 and $570,500.
Where the purchase price exceeds $570,500 but does not exceed $600,000 the NSW Home Builders Bonus will provide the better option, being a 25% discount of duty payable.
First homebuyers should also review the eligibility requirements for the First Home Owner Grant and make application if appropriate.
First Home - New Home and FHOG have specific prior ownership and residency requirements that must be met. We undertake stringent residency checks to ensure applicants meet these requirements and we have the right to reassess the duty and enforce the payment or the repayment of the First Home Owner Grant and Duty.
