Buying Your First Home in NSW
Buying your first home in New South Wales can feel both exciting and overwhelming, particularly when it comes to upfront costs such as transfer duty (commonly referred to as stamp duty). At the time, stamp duty news in NSW highlighted the First Home Buyer Choice scheme, which was available from 16 January 2023 until 30 June 2023. The scheme gave eligible buyers the option of paying an annual property tax instead of an upfront stamp duty payment. It was designed to help make entering the property market potentially more achievable by reducing some of the initial costs buyers faced.
What Replaced the First Home Buyer Choice Scheme?
When the First Home Buyer Choice scheme closed on 1 July 2023, the NSW Government expanded the First Home Buyers Assistance Scheme (FHBAS). This means:
- If you are buying a new or existing home valued up to $800,000, you may qualify for a full exemption from transfer duty.
- If the property is valued between $800,000 and $1 million, you may be eligible for a concessional rate of transfer duty.
- For vacant land intended as the site of your first home, you may receive a full exemption if the land is valued up to $350,000, and a concessional rate if valued between $350,000 and $450,000.
To qualify, you generally need to meet requirements such as being an individual (not a company or trust), being over 18, and never having owned residential property in Australia before. At least one purchaser must also be an Australian citizen or permanent resident.
These changes mean that the option to pay an annual property tax instead of transfer duty is no longer available for new purchases, as the First Home Buyer Choice scheme closed on 1 July 2023. However, first home buyers may still be eligible for support through the expanded First Home Buyers Assistance Scheme.
What Was the First Home Buyer Choice Scheme and How Did It Work?
The First Home Buyer Choice scheme was a NSW Government initiative that allowed eligible first home buyers to choose between an annual property tax or an upfront stamp duty payment. [Note: The scheme closed on 1 July 2023 and is no longer available.]
It took effect on 16 January 2023 and was described by then-Premier Dominic Perrottet as a significant stamp duty reform.
Concessional Stamp Duty Rates at the Time
[Note: These rates applied under the scheme before it closed on 1 July 2023 and are no longer current.]
New Homes | Established Homes | Vacant Land | |
Home valued under $650,000 | Zero stamp duty | Zero stamp duty | Zero stamp duty |
Home valued between $650,000 and $800,000 | Zero to $31,207 | Zero to $31,207 | Zero to $24,340 |
Home valued between $800,000 and $1.5 million | $31,207 to $66,700 | $31,207 to $66,700 | $24,340 to $66,700 |
Source: NSW Office of State Revenue
Was Property Tax Cheaper Than Stamp Duty?
At first glance, choosing the annual property tax instead of upfront stamp duty could appear less expensive, especially given the large lump sum stamp duty often required. Much of the stamp duty news at the time focused on how these changes might affect affordability for first home buyers
Stamp duty was a one-time fee based on the higher of the purchase price or market value. The First Home Buyer Choice scheme gave some buyers the chance to spread costs through an annual property tax, which was calculated on the land value of the property:
- $400 plus 0.3% of land value for owner-occupied properties.
- $1500 plus 1.1% of land value for investment properties.
However, in the long term, ongoing property tax payments could have been more expensive depending on circumstances. Many buyers were encouraged to seek professional advice from reliable mortgage brokers at the time to understand which option might have been more suitable.
Who Was Eligible for the Scheme?
To be eligible, purchasers (or at least one of them) needed to:
- Be an individual (not a company or trust).
- Be over 18 years of age.
- Be an Australian citizen or permanent resident.
- Not have previously owned or co-owned a residential property in Australia.
- Not have received a First Home Buyer Grant or stamp duty concession.
- Buy a property valued at $1.5 million or less.
- Move into the property within 12 months of purchase and live in it for at least six consecutive months.
- Sign the contract of purchase on or after 11 November 2022.
How Did People Apply?
Eligible buyers who purchased between 11 November 2022 and 15 January 2023 initially had to pay transfer duty but could later apply for a refund via Revenue NSW.
For contracts settled on or after 16 January 2023, buyers who chose the property tax option did not have to pay transfer duty upfront. [Note: Applications for the scheme closed on 30 June 2023 and are no longer available.]
What This Could Mean for Different Professions
While the First Home Buyer Choice scheme has now closed, the experience highlighted how different groups of buyers — such as healthcare professionals and those working in education — may face unique challenges and considerations when entering the property market. Below, we explore what these schemes could have meant for them, and what lessons may still be relevant today.
What This Means for Healthcare Professionals
Doctors, nurses, and other healthcare workers often face unique challenges when it comes to buying their first home. Years of study and training can delay wealth-building compared to other professions, while irregular hours and shift work may make planning more complex. At the same time, many lenders view healthcare incomes as stable, which could potentially improve borrowing options. For those wanting personalised options, there are products designed for home loans for doctors and home loans for nurses that may be worth comparing alongside government schemes.
To make this more practical, here are a couple of examples:
- For doctors: A junior doctor completing training may be weighing up whether it’s more suitable to pay transfer duty upfront or to explore available concessions under the First Home Buyers Assistance Scheme. Given the later start in their career, minimising large upfront costs could be appealing.
- For nurses: A nurse working rotating shifts may prefer the certainty of an upfront cost rather than the ongoing management of additional annual property expenses. Flexibility in budgeting could make a difference when working long hours and balancing lifestyle priorities.
It’s also worth considering the specific pain points healthcare professionals often face:
- Time-poor schedules: With little time outside of work, exploring loan products and government concessions can feel overwhelming. Having clear, straightforward guidance may help save valuable time.
- Loan eligibility: Some lenders may provide tailored loan products for doctors or other healthcare staff, such as reduced deposit requirements or waived LMI, which can be compared alongside government schemes.
- Retirement planning: Healthcare professionals often work long and physically demanding hours. Accessing home ownership earlier in their career may support greater security and flexibility later in life.
What This Means for Teachers and Education Professionals
People working in education often juggle steady incomes with demanding schedules and long-term career commitments. While teaching can provide stability, it also comes with unique financial realities that may shape the way teachers approach buying their first home. Some lenders and advisers may provide specialised support, and working with a mortgage broker for teachers could help compare available options more efficiently.
- Managing a teacher’s salary: Many teachers start their careers on moderate pay, which may affect how much they can borrow in the early years. Choosing between saving for upfront transfer duty or considering concessional schemes could influence how soon they feel able to enter the market.
- Regional vs. city living: Teachers are often posted to regional or rural schools. While property prices in these areas can be more affordable, lending options and access to government concessions may still need to be carefully compared to ensure the purchase is sustainable long-term.
- Balancing career progression: Moving into leadership roles can take time, and income growth is usually gradual. This slower progression may mean teachers lean towards predictability in home ownership costs rather than ongoing annual expenses that fluctuate.
Here are a couple of practical scenarios:
- A graduate teacher working on a temporary contract might focus on lower upfront costs to get into the market sooner, while keeping repayments manageable until their position becomes permanent.
- An experienced teacher nearing retirement may prefer the certainty of paying transfer duty upfront to avoid ongoing costs in later years when income may reduce.
Some pain points education professionals often face include:
- Time-poor schedules: Lesson preparation, marking, and extra-curricular duties leave little room for researching complex loan options. Having straightforward information may save stress.
- Eligibility nuances: While teachers generally have secure incomes, they may not always access the same profession-specific loan benefits offered to other groups, making government concessions potentially more relevant.
- Future planning: For teachers who expect to stay in education long-term, securing home ownership earlier could support greater stability when planning for retirement.
Whether you’re in healthcare, education, or another profession altogether, the key message remains the same — first home buyer schemes can change over time, and exploring what’s currently available may help you make a more informed decision. Connecting with a mortgage broker on the Gold Coast could be a practical way to compare lending options and understand which path may suit your circumstances.
For those also thinking about long-term opportunities such as investment properties, guidance from a property investment mortgage broker could be helpful when comparing lending options.
Ready to Buy Your First Home in NSW?
All in all, the First Home Buyer Choice scheme was designed as a short-term measure to make the upfront costs of buying a first home more manageable for some buyers in New South Wales.
As always, it’s important to remember that government schemes can change, and the right approach may depend on your personal circumstances. If you are considering purchasing your first home now, you may want to review the current First Home Buyers Assistance Scheme to see whether you are eligible for exemptions or concessions on transfer duty. If you live nearby or are based around the Mid North Coast, working with a mortgage broker in Coffs Harbour could be a helpful way to compare lending options and understand which path may suit your needs.
At Q Financial, our team can help you explore your home loan options and guide you through what’s available under the current schemes. Every situation is different, and speaking with a professional may give you more clarity about your choices, particularly when it comes to first home buyer questions.
Contact Q Financial today to book a chat with our team and take the next step toward your first home.
Updated in September 2025
