Understanding Stamp Duty in NSW

When you're buying your first home, there are many upfront costs to consider—and one of the biggest is stamp duty. Whether you're purchasing in Bathurst, Lithgow, or anywhere else in NSW, understanding what stamp duty is (and how to reduce or avoid it) is crucial to your budget planning. 

We will break down what stamp duty means for first home buyers in NSW and how it fits into your broader property finance strategy—including the home loan review process. 

What Is Stamp Duty? 

Stamp duty—also known as transfer duty—is a government tax paid when purchasing property. The amount is calculated based on the property's purchase price and applies whether you’re buying a home or investment property. 

In NSW, stamp duty can add tens of thousands of dollars to your upfront costs, which is why understanding your eligibility for concessions or exemptions is so important—especially as a first home buyer. 

How Much Is Stamp Duty in NSW? 

Stamp duty in NSW is tiered, meaning the higher the property price, the higher the duty you’ll pay. As of 2025, here’s a general guide (but rates may change): 

Property Value Approx. Stamp Duty 

$650,000 ~$24,000 

$800,000 ~$31,000 

$1,000,000 ~$40,000+ 

Tip: You can use the NSW Revenue Stamp Duty Calculator to estimate your cost. 

 Stamp Duty Concessions for First Home Buyers in NSW 

If you’re a first home buyer, you may be eligible for the First Home Buyer Assistance Scheme (FHBAS). This can significantly reduce—or even eliminate—stamp duty. 

Who Qualifies? 

You may receive a full exemption if: 

• The property is valued up to $800,000 (subject to thresholds) 

• You live in the home for at least 6 months 

• You have never owned property in Australia before 

Partial Concessions Apply If: 

The property is valued between $800,000–$1 million 

 Should You Consider the Annual Property Tax Alternative? 

NSW also introduced an optional annual property tax under the First Home Buyer Choice scheme. Instead of paying stamp duty upfront, you pay a small annual tax based on the land value. 

While this isn't part of the home loan review process, it is a decision that can impact your long-term budgeting strategy. A mortgage broker can help you weigh both options based on how long you plan to own the property. 

 How Stamp Duty Ties into the Home Loan Review Process 

You may be wondering: What does stamp duty have to do with a home loan review process? 

Here’s how: 

• If you purchased your home several years ago and paid stamp duty upfront, your financial situation may have changed. 

• Through a home loan review, you may unlock equity or refinance to access better terms—especially if you saved upfront by avoiding stamp duty. 

• Reviewing your home loan can also help you plan for future property purchases or upgrades where stamp duty will be a factor again. 

At Sparks Finance, we recommend reviewing your home loan every 12–24 months, especially if government incentives or your property value has shifted. 

What to Prepare Before Applying 

Before buying your first home and calculating your stamp duty, you’ll want to: 

• Get pre-approval for your loan 

• Estimate stamp duty or property tax based on property value 

• Check eligibility for FHBAS or FHBG (First Home Guarantee) 

• Speak to a mortgage broker for personalised advice 

Already Own a Home? Don’t Forget to Review 

If you're not a first home buyer anymore, stamp duty likely won’t be avoidable in your next purchase—but you can save significantly by ensuring your current mortgage is still competitive. That’s where a home loan review process comes in. 

We help clients in Bathurst and Lithgow refinance or restructure their loans based on equity growth and changes in the market.