In NSW, stamp duty is called transfer duty. If you are a first home buyer, you may pay none of it. Parramatta buyers sit under NSW rules, so the price limits below apply to you.
For self-employed buyers, the price limit is only half the story. Your lender still needs to approve the loan, and that depends on how your income is assessed.
How Much Stamp Duty Do First Home Buyers Pay in NSW?
Eligible first home buyers pay no transfer duty on a new or existing home valued at $800,000 or less. Between $800,000 and $1 million, a reduced rate applies, and at $1 million or more there is no concession.
Vacant land has its own limits. Eligible buyers pay no duty on land costing $350,000 or less, and a reduced rate applies up to $450,000. The First Home Buyers Assistance Scheme began on 1 July 2017, and the current exemption and concession thresholds have applied since 1 July 2023.
The concession is based on the property's value, so confirm the dutiable value early. Revenue NSW has a First Home Buyer Assistance Scheme calculator that estimates your saving.
Who Qualifies for the First Home Buyers Assistance Scheme?
You may qualify if you are buying a new or existing home, or vacant land, in NSW within the price thresholds, and the transfer is for the whole property. You must be an individual, not a company or trust, and over 18, though Revenue NSW can waive some of these in some cases. You and your spouse or partner must never have owned or co-owned residential property in Australia or received the concession before. Check the full criteria with Revenue NSW.
You must also meet the residence requirement. For contracts entered into on or after 1 July 2023, you must move in within 12 months of settlement and live there continuously for 12 months.
That residence rule matters if you run a business from home, or plan to rent the place out soon after settlement. Check the conditions with Revenue NSW or your conveyancer before you sign.
If your spouse or partner has ever owned residential property in Australia, you are generally not eligible for the FHBAS, even if they are not buying with you. The ineligible-buyer-pays-on-their-share rule applies only to co-buyers who are not a spouse or partner, within Revenue NSW's shared equity conditions. Confirm your situation with Revenue NSW or your conveyancer.
Example: A Sole Trader Buying Under the Threshold
A self-employed buyer who finds an existing apartment valued at $800,000 or less pays no transfer duty, provided the eligibility and residence conditions are met.
Consider a sole trader who has traded for a few years and has a deposit saved. Their savings were going to be split between the deposit and a duty bill. With the exemption, that bill does not exist. They keep a cash buffer for quiet trading months and for the tax they owe on business income, and they lodge the concession through the purchase process.
The outcome is a smaller upfront cash need. Lenders still assess the loan on income, debts and deposit. The trade-off is the price ceiling. If the buyer goes above $800,000, the full exemption is lost and a reduced rate of duty applies on a sliding scale up to $1 million. For example, Revenue NSW's 2026-27 table shows $9,796.75 at $850,000. So the extra cost is more than the price difference alone.
If you are building a case for your first loan, our self-employed first home buyer page explains how we approach it.
Ready to get started?
Book a chat with a Self Employed Mortgage Broker at Self Employed Home Loans today.
Does a Stamp Duty Concession Help You Get Approved?
No. A duty concession lowers your upfront costs, but a lender approves you based on your income, debts and deposit. The concession does not change your borrowing power.
Self-employed income is assessed differently from a payslip. Lenders usually look at tax returns, financials or business bank statements, and the figure they use can be lower than the profit you feel you make. Our borrowing capacity for self-employed guide covers how that assessment works. If your paperwork is thin, our low doc home loans page sets out the alternatives, which can come with a higher interest rate or a larger deposit requirement, depending on the lender.
Why Get Pre-Approval Before You Chase the Threshold?
Home loan pre-approval tells you what a lender is likely to let you borrow, so you know whether a property near the $800,000 line is realistic. It is not a final approval, and it can lapse or change if your finances move.
Set your search around two numbers: what you can borrow and the duty threshold. A property priced just under $800,000 may suit your finances, or it may stretch your repayments. Use our mortgage repayment calculator to test the repayments at different loan sizes before you commit.
When calculating home loan repayments, remember that rates vary by lender and by your deposit size. Test a few scenarios, including a buffer for rate rises. Keep your business and personal finances tidy before you apply for a home loan, because lenders will go through your statements.
Example: A Couple Where One Partner Has Owned Before
If one partner of a couple has previously owned residential property in Australia, the couple generally does not qualify for the exemption or concession. This applies whether or not that partner is on the contract.
Consider a couple where one partner has never owned property and the other sold an investment unit years ago. They assume the whole purchase is exempt. Their conveyancer flags that, because one partner has owned before, they are generally not eligible. The share-based rule applies only to non-spouse co-buyers, such as friends or family, within Revenue NSW's conditions.
The outcome is that the couple plans for the duty cost and tests what they can borrow and afford on that basis. Confirm eligibility with Revenue NSW before exchange, because sorting this out before you sign is what protects the deal.
Check Stamp Duty and Finance Together
Plan the duty saving and the loan together, not one after the other. If you are a company director or run a trust, ownership structure can affect whether you qualify, so get advice from your conveyancer or accountant on tax and duty before you sign. Concession rules and thresholds are adjusted over time, so confirm the current figures with Revenue NSW.
Call one of our team or book an appointment at a time that works for you. We will map your income, your deposit and the NSW duty thresholds into one plan so you can move on a Parramatta property with confidence.
This article provides general information only and does not take into account your objectives, financial situation or needs. It is not personal credit, financial, legal or tax advice. Loan eligibility, income assessment and documentation requirements vary by lender and may change. All applications are subject to lender assessment and approval, with applicable terms, conditions, fees and charges. Approval is not guaranteed. Obtain advice appropriate to your circumstances before making a decision.
