NSW Expands Tax Concessions For First Home Buyers

Accounting and Tax
May 23, 2023

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The NSW Labor Government has revoked the previous administration’s property tax alternative to stamp duty, the First Home Buyer Choice (FHBC) scheme, and announced an expanded concession system for first home buyers.

The NSW Government will introduce legislation into NSW Parliament this week to create its more straightforward, fairer stamp duty concession scheme, ensuring that 84% or 5 out of every six future first-home buyers will pay no tax or a reduced rate, starting Saturday, 1 July 2023.

The threshold for stamp duty exemptions for first-home buyers will be lifted from $650,000 to $800,000, and stamp duty concessions from $800,000 to $1 million.

That means a first-home buyer purchasing a property at $800,000 will save up to $31,090 under the changes.

Premier Chris Minns said he realized the stress associated with purchasing a first home and the struggle that came with it.

“This is a fairer and simpler system to ensure more first home buyers have a chance of owning their first property,” he said.

However, the benefits will be costed on a sliding scale depending on the cost of the home.

For example, a first-home buyer must pay a stamp duty of $10,023 (saving $23,318 on existing rates) on a property worth $850,000. However, a home worth $990,000 will incur $38,086 in stamp duty fees, significantly reducing the savings to $1555.

Buyers will also be required to live at their chosen property for 12 months instead of six, which the government hopes will improve the integrity of the benefits.

The legislation will include grandfathering provisions so first-home buyers who opted into the annual property tax can continue to pay that tax until they sell their property.

If you want to discuss financial planning for property investment, our specialist team will gladly help.

If you’re not actively managing your loan, chances are you’re paying more than you need to — and missing out on savings of $50 a week or more.

Whether it’s a mortgage, personal loan, or asset finance, small tweaks can unlock big savings. At AFP Finance & Loans, we’ve helped clients reduce repayments by over $2,600 a year — without changing their lifestyle or taking on more risk.

This article breaks down practical, proven ways to help you save around $50 each week on your repayments — and why working with a broker enables you to reach your goal of paying off your loan more easily.

1. Lower Your Rate

One of the simplest ways to save $50 a week is by securing a better interest rate. According to findings by PEXA, homeowners who refinanced to a new lender saved an average of $1,908 per year (nearly $37 per week) compared to just $384 annually for those who stayed with their original lender.

The kicker? Existing customers often pay 0.21% more than new customers. That small difference could mean an extra $70 each month on a $526k mortgage.

Refinancing through a trusted broker at AFP Finance & Loans ensures you’re not just accepting the status quo. We compare lenders, negotiate better terms, and help you avoid hidden costs.

Tip: If your rate drops, keep repayments the same to pay off your loan faster and save more in interest.

2. Switch to Weekly or Fortnightly Payments

Most people don’t realise they can make an extra month’s repayment each year just by switching from monthly to fortnightly payments.

If your lender calculates interest daily, this simple change can cut years off your loan and save thousands in interest.

While more frequent payments may not free up the whole $50 immediately, the compound savings are significant over time.

3. Use an Offset Account

Do you have savings sitting in a separate account? You could be missing an opportunity to save $50 each week in interest.

An offset account is a type of bank account linked to your loan. The balance in this account is used to offset the principal (the amount you still owe) — meaning the interest you pay is calculated on a reduced balance.

An offset account allows your money to shrink your loan amount, without locking your savings away. Funds remain fully accessible — but while they sit in the account, they’re actively working to lower the interest you pay (without any extra repayments).

For example, keeping $50,000 in offset on a 6% loan saves about $3,000 a year — or $57 a week — making every dollar work harder for you.

4. Cut Hidden and Ongoing Fees

Fees can quietly erode your savings. Annual package fees can range from $300 to $400, and monthly service fees still exist on many products.

By switching to a low-fee alternative or refinancing smartly, you could reduce your outgoings by $10–$15 a week. We review fee structures and recommend lenders who offer genuine value — not just teaser rates.

Why Work with a Broker?

From refinancing and rate shopping to offset structuring and fee analysis, you will be supported from start to settlement with AFP Finance and Loans. We’ll act on your behalf, comparing options and securing better terms.

With access to over 50 lenders on our accredited panel, AFP Finance & Loans assists clients with residential loans, commercial loans, personal loans, investment finance, and more. We do the heavy lifting so you can focus on what matters to you.

How to Start Saving $50 a Week, Today

You came here to save $50 a week on your loan, and by now you should see it’s easier than it sounds.

Many people overpay without realising. However, with better advice and a few simple adjustments, you can lower costs, improve cash flow, and stay on track financially.

The next step? Get expert eyes on your current agreement. AFP Finance & Loans can help you reduce repayments, avoid fees, and structure your loan repayments to serve your goals.

Book your loan review today to put $50 a week back where it belongs: in your pocket.