First Home Buyer Choice.

Commencing 16 January 2023, the First Home Buyer Choice Scheme will give eligible NSW first home buyers the option to choose between a lump sum, upfront, stamp duty tax or an annual property tax. The annual property tax amount for the 2022 – 2023 financial year will be $400 per year, plus 0.3% of the value of land. 

These tax rates will be indexed each year from 2024-2025, so that the average indexed property tax payment rises in line with average annual incomes. In addition, the year-to-year growth of individual property tax payments are capped at a maximum of 4 per cent.

For properties that are owned for less than a full financial year, a pro rata adjustment will be made based on the number of days in the year the property is owned. The property will not be subject to an ongoing property tax once it is sold on.

Current NSW stamp duty exemptions will still apply for properties up to $650,000 (no stamp duty), and stamp duty concessions will still apply for properties up to $800,000 (stamp duty sliding scale).

First home buyers can choose between stamp duty or property tax prior to settlement. Once this choice is made, it cannot be changed after settlement. If a first home buyer chooses the property tax they must continue to pay the property tax until they are no longer the owner of the property.  


First Home Buyer Choice Eligibility

  • Only available to First Home Buyers over the age of 18 years old
  • Must be an individual (not a company or trust)
  • At least one person purchasing the property, must be an Australian citizen or permanent resident
  • Both the purchaser and their spouse must not have previously owned or co-owned residential property in Australia or received a First Home Buyer Grant or duty concessions
  • Only available for existing properties valued up to $1,500,000 or vacant land for construction purposes up to $800,000
  • The property must be initially for owner occupied purposes.
  • Purchasers must move in within 12 months of purchasing the property and live in it continuously for at least 6 months.
  • After living in the property for a minimum of 6 months, you can convert the property to an investment, where the tax payments will increase to $1,500 per year plus 1.1% of the land value.





  • Amanda is buying her first home, a $1.2 million townhouse in Sydney. The land value of this property is $720,000.
  • Stamp duty on this purchase is $50,200, and the purchase price is above the threshold for any first home buyer stamp duty concessions.
  • In 2022-23, property tax on the property would be $2,560.



  • Aisha is buying her first home, a $750,000 apartment in Concord. The apartment has a land value of $270,000.
  • As an eligible first home buyer, Aisha qualifies for a concessional rate of stamp duty which in this case results in stamp duty of $20,727.
  • In 2022-23, the annual property tax on the apartment would be $1,210.


Calculate your Property Tax

For a comparison of stamp duty to annual property tax go to


More details for the First Home Buyer Choice Initiative can be found on the NSW Government Website


Contact an Assured Lending Mortgage Broker for more information today



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 First Home Buyer Choice Scheme NSW