The online calculator is now available on the ServiceNSW website which allows people to search for a property and compare the estimated property tax (for the first year) and the stamp duty, in order to determine which option is financially suitable for them. 

Under the First Home Buyer Choice initiative set to commence on 16 January 2023, eligible first home buyers will have the choice between a smaller annual property payment, or a traditional upfront payment for properties.

The property tax option will be available for properties with a purchase price up to $1.5 million, the NSW Government noted the initiative will lower the upfront costs of home purchases for first home buyers who choose to opt in.

The NSW Government noted about 84% of homes sold in NSW fall under the initiative's $1.5m eligibility cap.

Premier Dominic Perrottet said choice was central to this game-changing reform and will help put keys in the hands of more new home owners sooner by shaving years off the time it takes them to save for a deposit.

"Home ownership is the investment that starts paying dividends from the moment you walk through your front door for the first time and we don’t want people to have to wait an extra couple of years to reap those benefits," Mr Perrottet said.

"Choice is at the heart of these game-changing reforms that will put keys in the hands of new home owners much sooner and allow young people to capitalise on the financial security that home ownership delivers."

Treasurer Matt Kean said the First Home Buyer Choice calculator will help first home buyers decide for themselves which pathway to home ownership best suits their financial circumstances and personal aspirations.

"Treasury analysis indicates half of all owner-occupiers sell their home within 10.5 years, with first home buyers likely to sell even sooner," Mr Kean said.

"That means for the majority of first home buyers that don’t already receive stamp duty assistance, First Home Buyer Choice will not only allow them to break into the property market earlier, but pay less overall.

"First Home Buyer Choice will help young families take their goals of homeownership into their own hands and fast-track their journey to the great Australian dream." 

Director of Economic Research at PropTrack Cameron Kusher said the calculator will allow prospective first home buyers to see the costs and benefits of choosing to pay either stamp duty or land tax so they can make more informed decisions.

"Given most first home buyers are restricted by budgets and are not necessarily purchasing the home they plan to live in for the next few decades, we expect that a majority of those first home buyers eligible will choose to pay land tax rather than stamp duty," Mr Kusher said.

"This will enable buyers to spend a little more and/or to get into the market sooner than they otherwise would be able to.

"With property prices falling and rents continuing to climb, the prospect of buying a home with significantly fewer upfront costs will be increasingly appealing for first home buyers in NSW."

All Australians have access to the online calculator features, and to calculate the property tax users will need:

  • the property purchase price (or your estimate of the price)
  • the address of the property (used to determine the land value)
  • the intended property usage (owner-occupied or investment), and
  • the type of property (property with a dwelling).

Finance Minister Damien Tudehope said the calculator was an important tool that would make it easy for first home buyers to make the decision that was right for them.

"When you own your own home, you own a stake in our nation, and the First Home Buyer Choice will help more young people across NSW do exactly that," Mr Tudehope said.

"The calculator is easy to use and will find the land value of eligible properties under $1.5 million to calculate the options."

Legislation for the First Home Buyer Choice, which was announced in the 2022-23 NSW Budget as part of the Government’s integrated $2.8 billion housing package, and will soon be introduced into Parliament.


Buying a home or looking to refinance? The table below features home loans with some of the lowest interest rates on the market for owner occupiers.

Update resultsUpdate
LenderHome LoanInterest Rate Comparison Rate* Monthly Repayment Repayment type Rate Type Offset Redraw Ongoing Fees Upfront Fees LVR Lump Sum Repayment Additional Repayments Split Loan Option TagsFeaturesLinkCompare
6.04% p.a.
6.06% p.a.
Principal & Interest
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5.99% p.a.
5.90% p.a.
Principal & Interest
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  • Unlimited redraws & additional repayments. LVR <80%
  • A low-rate variable home loan from a 100% online lender. Backed by the Commonwealth Bank.
6.14% p.a.
6.16% p.a.
Principal & Interest
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Important Information and Comparison Rate Warning

Base criteria of: a $400,000 loan amount, variable, fixed, principal and interest (P&I) home loans with an LVR (loan-to-value) ratio of at least 80%. However, the ‘Compare Home Loans’ table allows for calculations to be made on variables as selected and input by the user. Some products will be marked as promoted, featured or sponsored and may appear prominently in the tables regardless of their attributes. All products will list the LVR with the product and rate which are clearly published on the product provider’s website. Monthly repayments, once the base criteria are altered by the user, will be based on the selected products’ advertised rates and determined by the loan amount, repayment type, loan term and LVR as input by the user/you. *The Comparison rate is based on a $150,000 loan over 25 years. Warning: this comparison rate is true only for this example and may not include all fees and charges. Different terms, fees or other loan amounts might result in a different comparison rate. Rates correct as of . View disclaimer.

Image by Alena Darmel via Pexels.

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