NSW Stamp Duty: The July 1 2023 change that will affect first home buyers

From July 1 first home buyers in New South Wales won't be subject to stamp duty on any property under $800,000.

The NSW Government has raised the stamp duty concession cap from $650,000, with the intention to assist first home buyers getting into the market.

Concessions will also be applicable to properties worth up to $1 million, up from the previous limit of $800,000.

The NSW government estimates that around 84 per cent of first home buyers will benefit from the reforms, paying either a reduced rate or no stamp duty at all.

It's estimated that a first home buyer purchasing an $800,000 property will save up to $31,090 under the new rules.

The NSW government's legislation will also introduce tighter scrutiny by including an eligibility requirement mandating that purchasers must reside in the purchased property for a minimum of one year.

The new concessions will come into place following the expiry of the First Home Buyer Choice scheme, which was brought in by the Coalition state government. That allowed first home buyers to buy a property up to the value of $1.5 million and choose to pay an annual property tax rather than stamp duty.

At the time the Labor Party described it as a "forever tax on your home" and had promised to abolish it.

Comparatively, Queensland's no stamp duty threshold is $500,000, and Melbourne's is $600,000.