When it comes to purchasing property in New South Wales, it’s important to understand the costs involved. One of the significant expenses is stamp duty.
Stamp duty, also known as transfer duty in NSW, is a tax charged by state and territory governments for property purchases.
How is NSW Stamp Duty Calculated?
NSW stamp duty calculator makes it simple. It is a handy tool, especially for a first home buyer.
Here’s a breakdown of the variables used in our first home buyer calculator stamp duty:
1. Property value
Stamp duty is mainly based on the property’s purchase price. The higher the property value, the higher the stamp duty payable.
2. Property type
Different rates apply to residential properties and vacant land.
3. First home buyers
If you’re a first home buyer in NSW, you may be eligible for exemptions or concessions that can significantly reduce your stamp duty liability.
4. Additional fees
Apart from stamp duty, there are other government fees to be aware of, such as land transfer fees and mortgage registration fees.
For example, if you’re a first home buyer purchasing an established home for $650,000, stamp duty in NSW would be nil, however you would pay government fees (mortgage registration fee and land transfer fee) of about $330.80 (see image).
Loan Station’s stamp duty calculator also includes a breakdown of rates and thresholds (see image) for these fees. In NSW, for a property in the $351,000 – $1,168,000 bracket, a home buyer will be charged $10,530 plus $4.50 for every $100 that the value of the property exceeds $351,000.
Stamp duty exemptions and discounts for NSW first home buyers
First Home Buyers Assistance Scheme (FHBAS)
Under this scheme, eligible first home buyers purchasing a new or existing home for $800,000 or less are exempt from stamp duty.
Eligible first home buyers buying a home worth between $800,000 and $1 million will pay a reduced stamp duty rate.
If you buy vacant land to build a home worth $350,000 or less, you’re exempt from stamp duty. If the land is worth between $350,000 and $450,000, a reduced transfer duty rate applies.
The $10,000 First Home Owner Grant
First home buyers who build a new home or purchase a new or substantially renovated property can receive a $10,000 grant.
To be eligible under the program, new homes must be valued below $600,000, or below $750,000 for a new house-and-land package. Eligible properties include:
- A new house, townhouse, apartment or unit
- Vacant land (to build on)
- Substantially renovated homes
Shared Equity Home Buyer Helper
Under this scheme, the NSW government contributes a portion of a buyer’s home value in exchange for a stake in their property.
It assists eligible single parents (with dependent children), single people (50 years and over), first home buyers who are employed as key workers (such as nurses and teachers) and victim-survivors of domestic and family violence.
A deposit of at least 2% is required. No rent or interest is payable on the government’s share of the property, but they will take a share of the profits when you sell it.
You can make voluntary repayments to buy back your share of the property over time.
Final thoughts
Understanding the intricacies of stamp duty in NSW is important for first home buyers. With the help of tools like Loan Station’s stamp duty calculator, navigating these costs becomes more manageable. It also ensures you’re making informed financial decisions.
Ready to take the next step towards buying your first home? Consider Sydney mortgage broker Loan Station to discuss your mortgage options or use our first home buyer calculator stamp duty. Contact us on 1300 46 46 11 or info@loanstation.com.au for a consultation.
FAQs
Who is exempt from stamp duty in NSW?
Under the First Home Buyers Assistance Scheme (FHBAS), you’re exempt from stamp duty if you’re an eligible first home buyer purchasing:
- a new or existing home for $800,000 or less
- vacant land to build a home worth $350,000 or less
What are the eligibility criteria for stamp duty NSW exemptions?
To be eligible for the program, you must be:
- 18 years or over
- an Australian citizen or a permanent resident of Australia
- purchasing your first home
- planning to live in the home for 12 months
What is the threshold for stamp duty in NSW?
In NSW, for a property in the $93,000 – $351,000 bracket, a home buyer will be charged $1,500 plus $3.50 for every $100 that the value of the property exceeds $93,000.
For a property in the $351,000 – $1,168,000 bracket, a home buyer will be charged $10,530 plus $4.50 for every $100 that the value of the property exceeds $351,000.
For a detailed list of the threshold for stamp duty in NSW, use Loan Station’s NSW stamp duty calculator.
Is there stamp duty on $800,000 in NSW?
The threshold for stamp duty exemption on new homes and existing homes in NSW as of 1 July 2023 is $800,000. This means if you purchase a property valued at $800,000 or less, you will not pay any stamp duty in NSW.
How much is stamp duty for first home buyers in NSW?
First home buyers in NSW may be eligible for stamp duty exemption, concession and/or a grant.
Under the First Home Buyers Assistance Scheme (FHBAS), eligible first home buyers purchasing a new or existing home for $800,000 or less are exempt from stamp duty. Eligible first home buyers buying a home worth between $800,000 and $1 million will pay a reduced stamp duty rate.
If you buy vacant land to build a home worth $350,000 or less, you’re exempt from stamp duty. If the land is worth between $350,000 and $450,000, a reduced transfer duty rate applies.
With the $10,000 First Home Owner Grant, first home buyers who build a new home or purchase a new or substantially renovated property can receive a $10,000 grant. To be eligible under the program, new homes must be valued below $600,000, or below $750,000 for a new house-and-land package.
And with the Shared Equity Home Buyer Helper, the NSW government contributes a portion of a buyer’s home value in exchange for a stake in their property.
How much is stamp duty on $650,000 in NSW?
If you’re a first home buyer purchasing a home worth $650,000, you would be exempt from paying stamp duty.
What are first home buyers entitled to in NSW?
First home buyers in NSW are entitled to stamp duty exemptions and discounts such as the: First Home Buyers Assistance Scheme (FHBAS), $10,000 First Home Owner Grant and Shared Equity Home Buyer Helper.
How do you calculate stamp duty in NSW?
Calculating stamp duty can be tricky, but Sydney-based mortgage broker Loan Station’s NSW stamp duty calculator makes it simple.
How much is stamp duty on a $1 million house NSW?
If you’re a first home buyer purchasing a $1 million house your stamp duty would be $40,065.80 including your mortgage registration and transfer fees.
How much is stamp duty on cars in NSW?
To calculate the stamp duty on your car in NSW, you’ll take either the total market value or the purchase price and use the figures below to calculate it.
For a motor vehicle valued up to $44,999, the stamp duty payable is $3 for every $100. For a motor vehicle valued $45,000 or more*, the stamp duty payable is $1,350 plus $5 for every $100. (*Excludes motorcycles, buses for more than nine people, hearses and disability vehicles.)
