First Home Buyer Vacant Land Exemption and Concession in NSW

How much the vacant land concession saves

No transfer duty

Land valued at $350,000 or less

Reduced duty

Over $350,000 and under $450,000

No concession

$450,000 or more

Applies to

Contracts exchanged on or after 1 July 2023

The value is the dutiable value: the higher of the price you pay and the land’s market value. The table shows what the concession is worth at different land values this financial year.

Reduced amounts are the NSW Government’s published figures for contracts from 1 July 2026 to 30 June 2027. Normal duty is our estimate using Revenue NSW’s 2026–27 general rates. Try your own numbers in our NSW transfer duty calculator.

Who is eligible for the vacant land concession

• You’re buying as an individual, not a company or trust, and you’re at least 18
• At least one buyer is an Australian citizen or permanent resident
• Neither you nor your spouse or de facto partner has ever owned residential land in Australia
• Neither of you has received a first home buyer exemption or concession before
• It’s a vacant block of residential land in NSW that you intend to build your home on
• You’re buying the whole block; a relative who isn’t a first home buyer can join you if first home buyers take at least 50%

The same scheme covers homes, with higher thresholds. Our guide to stamp duty exemptions for first home buyers in NSW explains the rules for buying a home.

The building and moving-in rules

For vacant land, the test is your intention. When you apply, you declare that one of the eligible buyers intends to live in a home on the site, and Revenue NSW must be satisfied the block is intended as the site of your principal place of residence. Revenue NSW’s guidance doesn’t publish a deadline to build.

The declaration has to be true. Plan to move in within 12 months of the home being finished and to live there for at least 12 months: that’s what the NSW Government’s scheme summary describes for newly built homes, and it’s a condition of the First Home Owner Grant. If your plans change, tell Revenue NSW straight away. If you’re no longer eligible you’ll need to pay the duty, and interest and penalties can apply if you don’t come forward.

Land-only contract or house-and-land package?

Which thresholds apply depends on what the vendor agrees to transfer to you, judged on the day you sign. Revenue NSW’s ruling DUT 018 explains the two common set-ups.

• Separate land and building contracts. The vendor sells you vacant land and you engage a builder separately. Duty is assessed on the land only, so the vacant land thresholds apply.
• A finished house-and-land package. You agree to receive a completed home at settlement, in one contract or two linked contracts that settle after the build. Duty is assessed on the house and land together, and the home thresholds apply: no duty up to $800,000 and a concession under $1 million.

Adding the First Home Owner Grant and the 5% Deposit Scheme

The First Home Owner Grant (New Homes) pays $10,000 when you build your first new home. With a comprehensive building contract, the land value plus the contract price and any variations must be $750,000 or less. Owner-builders face the same cap. You must move in within 12 months of completion and live there for 12 continuous months. Our First Home Owner Grant guide has the details.

The Australian Government 5% Deposit Scheme covers vacant land with a building contract. Land plus build must come in under the price cap: $1.5 million in Sydney and the NSW regional centres, $800,000 elsewhere in NSW. The loan can run up to 30 years, plus up to three years to build.

How to apply

1. 1

   Check you’re eligible

   Use the NSW Government’s Home Buyer Assistance Finder and Revenue NSW’s First Home Buyers Assistance calculator.

2. 2

   Get pre-approval for the land and the build

   Lenders assess the land purchase and the construction loan together. See how we help with construction loans and building your own home.

3. 3

   Exchange on the land

   Have your solicitor or conveyancer check the contract, including the zoning on the planning certificate.

4. 4

   Lodge the application

   After exchange, give your solicitor or conveyancer the scheme application form, the purchaser declaration and your proof of identity. They lodge it with Revenue NSW.

5. 5

   Build and move in

   Keep records of the build, and move in once the home is finished.

Frequently asked questions

Can I get the vacant land concession if I buy with my partner?

Yes, if you both meet the criteria. If your spouse or de facto partner has ever owned residential property in Australia, or has already received a first home buyer exemption or concession, you’re not eligible, even if they aren’t on the contract. A relative who isn’t your partner can join as an equity partner if first home buyers take at least 50%.

What if the land costs $460,000?

Then no first home buyer concession applies and you pay transfer duty at the general rates, about $14,887 on $460,000 at 2026–27 rates. The concession stops below $450,000, and it’s based on the higher of the price and the land’s market value. You may still get the First Home Owner Grant if land and build total $750,000 or less.

Do I have to start building by a certain date?

Revenue NSW’s guidance for vacant land focuses on intention: when you buy, one of you must intend to live in a home built on the block. It doesn’t publish a build deadline. Plan to move in within 12 months of completion and stay at least 12 months, which the First Home Owner Grant requires anyway. If plans change, contact Revenue NSW.

Can I get the First Home Owner Grant on vacant land alone?

No. The $10,000 grant is paid for a new home, not for land. If you buy land and sign a comprehensive building contract, or build as an owner-builder, the land value plus the build cost must be $750,000 or less. You can apply through your lender if you need the grant for a progress payment.

Does the vacant land concession apply to a house-and-land package?

It depends on the contracts. If you buy vacant land and sign a separate building contract, duty is assessed on the land, so the vacant land thresholds apply. If the vendor agrees to hand over a finished house on settlement, duty is assessed on the house and land together, and the home thresholds of $800,000 and $1 million apply.

Sources

1. Revenue NSW: First Home Buyers Assistance Scheme (opens in a new tab)
2. Revenue NSW: First Home Buyers Assistance Scheme guide, eligibility criteria (opens in a new tab)
3. NSW Government: First Home Buyers Assistance Scheme (reduced rates 2026–27) (opens in a new tab)
4. Revenue NSW: How to calculate transfer duty (2026–27 rates) (opens in a new tab)
5. Revenue NSW: Ruling DUT 018, dutiable transactions over land and improvements (opens in a new tab)
6. Revenue NSW: First Home Owner (New Homes) Grant (opens in a new tab)