Stamp Duty Concessions and How to Apply in Earlwood

Stamp duty concessions can reduce the upfront cost of buying your first home in Earlwood by thousands of dollars.

For first home buyers in NSW, the First Home Buyers Assistance Scheme offers a full exemption on properties valued up to $800,000 and a partial concession on properties between $800,001 and $1,000,000. If you are looking at established homes in Earlwood, which typically sit within or just above the full exemption range depending on the street and size, understanding how these concessions apply can change what you can afford to buy.

The concession applies automatically when you settle, provided you meet the eligibility criteria. It is not a separate application. Your conveyancer or solicitor lodges the paperwork with Revenue NSW as part of your purchase. The money you save stays in your pocket, which means you may be able to borrow less, keep more cash for furniture and repairs, or simply feel more comfortable with your deposit buffer.

What the NSW Stamp Duty Concession Covers

The NSW First Home Buyers Assistance Scheme applies to both new and established homes. A full transfer duty exemption applies if the property is valued at $800,000 or less. A sliding scale concession applies between $800,001 and $1,000,000. Above $1,000,000, no concession applies.

For vacant land, a full exemption applies up to $350,000, with a concession for land valued between $350,001 and $450,000. That is less relevant in Earlwood, where most buyers are purchasing existing homes or townhouses rather than standalone land.

You need to move into the property within 12 months of settlement and live there as your principal place of residence for at least 12 continuous months. If you do not meet the residency requirement, Revenue NSW can claw back the concession, and you will owe the full stamp duty amount plus interest.

How the Concession Connects to Your Home Loan

When you apply for a home loan, your lender assesses how much you can borrow based on your income, expenses, and deposit. Stamp duty is a settlement cost, not part of the purchase price, so it sits outside the loan amount in most cases.

Consider a buyer purchasing a two-bedroom unit in Earlwood valued at $780,000. Without the concession, stamp duty would be roughly $30,000. With the full exemption, that buyer pays nothing. The $30,000 they would have spent on stamp duty can now go toward a larger deposit, which reduces the loan amount and may also help them avoid Lenders Mortgage Insurance if their deposit reaches 20 per cent.

If the same buyer had a 10 per cent deposit of $78,000 and was initially planning to borrow $702,000 plus pay $30,000 in stamp duty from savings, they now borrow $702,000 and keep the $30,000. That extra buffer can cover conveyancing, building inspections, removalists, and early repairs without touching the loan.

When the Sliding Scale Concession Applies

The partial concession applies when the property is valued between $800,001 and $1,000,000. The exact discount depends on the purchase price and is calculated on a sliding scale by Revenue NSW.

In Earlwood, many three-bedroom homes and larger units sit in this range. A home valued at $900,000 would normally attract stamp duty of around $38,000. The concession reduces that amount, though not to zero. The buyer still pays some duty, but significantly less than a non-first-home buyer would.

If you are weighing up properties at different price points, the concession can shift the calculation. A home priced at $799,000 with no stamp duty may cost less overall than a home priced at $820,000 with partial duty relief, even if the second property feels like better value on paper.

Your mortgage broker can help you model the real cost of each scenario, including how much you need to borrow, what your repayments will be, and whether the deposit size affects your ability to access a variable rate or split loan structure.

Combining the Concession with the 5% Deposit Scheme

The NSW stamp duty concession can be used alongside the Australian Government 5% Deposit Scheme, which allows eligible first home buyers to purchase with a deposit as low as 5 per cent without paying Lenders Mortgage Insurance.

The two programs do not conflict. The 5% Deposit Scheme is a federal program administered by Housing Australia, and the stamp duty concession is a state program administered by Revenue NSW. You can access both if you meet the eligibility criteria for each.

For the 5% Deposit Scheme, the property price cap in Sydney is $1,500,000. For the stamp duty concession, the cap for any relief is $1,000,000. In Earlwood, most properties sit well within both caps, so the overlap works in your favour.

A buyer purchasing a $750,000 unit with a 5 per cent deposit of $37,500 would borrow $712,500, pay no stamp duty, and avoid LMI through the government guarantee. The total cash required at settlement, excluding conveyancing and other minor costs, is just the deposit. That makes ownership accessible much sooner than if the buyer had to save a 20 per cent deposit plus stamp duty.

What Happens if You Miss the Residency Requirement

The 12-month residency requirement is not negotiable. Revenue NSW tracks compliance, and if you sell, lease, or move out before the 12 months is up without an approved exemption, you will be required to repay the concession.

Approved exemptions include job relocation, relationship breakdown, and serious illness. You need to apply to Revenue NSW in writing and provide evidence. The exemption is not automatic.

If you think your circumstances might change in the first year, talk it through with your conveyancer before you exchange contracts. Moving interstate for work six months after settlement is not unusual, but it can cost you tens of thousands of dollars if you have not planned for it.

Checking Eligibility Before You Commit

To qualify for the NSW stamp duty concession, you and anyone else named on the title must be individuals who are at least 18 years old, Australian citizens or permanent residents, and first home buyers. You cannot have previously owned residential property in Australia or anywhere else in the world, either solely or jointly, including inherited property.

If you owned an investment property years ago, even if you sold it, you are not eligible. If your partner owned a home before you met, and they are going on the title with you, neither of you can access the concession.

Revenue NSW checks your eligibility by cross-referencing land title records in Australia and may request a statutory declaration about overseas property ownership. Lenders do not verify eligibility for the concession, so it is your responsibility to confirm you meet the criteria before you settle. Your conveyancer will also check, but the earlier you know, the more accurately you can plan.

How Earlwood Buyers Typically Use the Concession

Earlwood sits around 11 kilometres south-west of the Sydney CBD, bordered by the Cooks River and close to Canterbury Road. The suburb attracts first home buyers because of the mix of older units, renovated townhouses, and proximity to parks like Earlwood Oval and riverside paths.

Most first home buyers in the area are purchasing units rather than houses. The median unit price in the inner west generally sits within the full exemption threshold, which makes the stamp duty concession particularly relevant. A buyer looking at a two-bedroom unit near Earlwood village can often avoid stamp duty entirely, which frees up cash for other settlement costs or reduces the amount they need to borrow.

We regularly see buyers in Earlwood weighing up whether to stretch to a three-bedroom unit just above the $800,000 mark or stay within the full exemption range. The decision depends on how much deposit they have, what their borrowing capacity allows, and whether the extra space justifies the partial concession instead of the full exemption.

If you are thinking about refinancing down the track, starting with a lower loan amount because you saved on stamp duty can give you more equity sooner, which opens up options for better rates or accessing equity for renovations.

Frequently Asked Questions