First Home Buyers Choice


The First Home Buyers Choice (FHBC) is a significant change in NSW legislation for First Home Buyers, especially for purchasers that need to spend above the transfer exemption and concession thresholds.

This will be welcome news in the Northern Rivers where the median price is high.

What does FHBC really offer?

Instead of paying a large lump sum of Transfer Duty (previously known as Stamp duty) a First Home Buyer can pay an annual property tax of a few thousand dollars. This enables a First Home Buyer to get into the property and pay a property tax rather than having to come up with the money as part of the settlement costs.

  • First Home Buyers must still meet all the eligibility requirements*.
  • Land up to $800,000.
  • Residential (New or Existing home) up to $1,500,000.
  • Contracts signed on or after 11.11.2022 are still eligible for retrospective eligibility to opt into the property tax arrangement.

A property tax assessment notice will be issued annually in the financial year (same as Council rates). With payment either by single payment or 4 quarterly payments.

What would you save?

Working out the payment for a property of $1,500,000.00.

Before FHBC, full duty of $66,700.00 would have been payable.

WITH FHBC – an annual assessment would be approx. $2,800.00 per year**

A First Home Buyer will continue to pay the annual property tax for the entire time until they sell. You would have to own the house for over 23 years to equal the full duty payment, whereas in NSW the average length of time is 11 years, making it only $30,800** a difference of $35,900.

The savings are significant, as is the availability to pay as you go making the FHBC a great help to First Home Buyers in the Northern Rivers.

* First home buyer eligibility requirements – over 18, Australian Citizen or permanent resident, intend to live in property within 12 months of purchasing for a minimum of 6 months.

**based on land value of $800,000, annual tax would be subject to indexation.