NSW Cracks Down on Abuse of First-Home Buyer Benefits
NSW Cracks Down on Abuse of First-Home Buyer Benefits
3
The information on this website is general in nature and does not take into account your objectives, financial situation, or needs. Consider seeking personal advice from a licensed adviser before acting on any information.
More than $9 million has been reclaimed in a concerted effort by Revenue NSW to ensure the first-home buyers program remains fair and effective.
This initiative comes in response to a small group of applicants attempting to exploit the system meant to aid genuine first-time homebuyers.
Through focused investigations, the compliance team at Revenue NSW identified and recovered $9.44 million that had been misappropriated by non-compliant applicants. These investigations were carried out with precision, targeting those who attempted to circumvent the laws of the first-home buyers program.
In the inaugural year of the expanded program, 33,365 first-time buyers either completely evaded stamp duty or received a discounted rate. With current thresholds, first-home purchases under $1 million qualify for these benefits, easing the financial burden for new homeowners.
The rules of the program stipulate that first-home buyers must occupy their new property within a year and maintain continuous residence for at least twelve months. This requirement saw 718 investigations initiated in the 2023/24 period, leading to 422 individuals having their stamp duty relief revoked or reduced. These 422 cases account for less than 1.3% of all successful applications.
Selection for investigation is far from random, relying on a sophisticated data-matching system that flags potential non-compliance. Data sources include the NSW Government Rental Bonds Board and federal institutions like the Department of Home Affairs and the Australian Taxation Office.
In some instances, tenant referrals trigger investigations. For example, suspicions may arise when tenants are asked to keep utility accounts in the owner's name. Such red flags prompt further scrutiny by the compliance team.
Revenue NSW’s compliance team comprises experts with decades of investigative experience from both public and private sectors. Their collaborative expertise ensures the first-home buyers program is correctly targeted to provide much-needed financial relief, while maintaining rigorous compliance checks.
This initiative reflects the shift under the Minns Labor Government, replacing the old Liberal-National Government policies with a more focused and larger threshold, benefiting over 18,000 new homebuyers who might have otherwise missed out under the previous scheme.
Minister for Finance Courtney Houssos emphasizes the importance of supporting new homeowners amid current economic challenges. "At a time of a cost-of-living crisis, the Minns Labor Government is committed to providing real relief to first-home buyers. This program is clearly working, helping more than 30,000 people into their first homes. Revenue NSW’s compliance team is ensuring that only those eligible for the scheme are able to use it."
Furthermore, Chief Commissioner of State Revenue Scott Johnston lauds their efforts, stating, "We’re very proud of our compliance team and the excellent work they do. Revenue NSW’s compliance programs are essential to maintaining the integrity of our programs. Our team works tirelessly to make sure the first-home buyers program is accessible to everyone who needs it, and that people who aren’t eligible don’t try to game the system."
Recent data from the Australian Bureau of Statistics (ABS) reveals a significant uptick in investor activity within the housing market. In the third quarter of 2025, new investor loans increased by 13.6%, contributing to a 12.3% annual growth. This surge has propelled the total value of Australia's residential real estate to an unprecedented $12 trillion, effectively doubling its worth over the past decade. - read more
The Australian Prudential Regulation Authority (APRA) has announced a significant policy change aimed at mitigating risks in the housing market. Effective February 2026, APRA will implement a cap on high debt-to-income (DTI) home loans, limiting banks to issuing no more than 20% of new home loans with DTI ratios of six times or higher. This measure applies to both owner-occupier and investor loans, excluding new housing developments. - read more
In the first half of 2025, Australia experienced a remarkable 122% increase in sustainable loan issuance, a stark contrast to the 21% decline observed globally during the same period. This surge underscores Australia's commitment to environmental sustainability and the growing integration of green finance within the nation's financial sector. Find out now if you qualify and compare rates, offers and options from multiple lenders - without a credit check! - read more
The Reserve Bank of Australia (RBA) has released its October 2025 Financial Stability Review, providing a comprehensive analysis of the nation's financial system amidst ongoing global economic uncertainties. The report underscores the resilience of Australia's financial institutions, while also highlighting areas requiring vigilant oversight. - read more
In a significant shift towards digital transformation, Australian finance departments are increasingly adopting artificial intelligence (AI) and automation technologies to streamline operations and enhance decision-making processes. This trend reflects a broader global movement where financial institutions leverage technology to improve efficiency and maintain a competitive edge. - read more
Financial wellbeing is often a balancing act that many Australians find challenging. In an age where the cost of living seems to climb incessantly, managing money effectively has never been more critical. Yet, despite the importance of financial literacy, many individuals struggle to break free from the cycle of poor budgeting and erratic spending habits. - read more
When applying for a loan in Australia, it's essential to have a clear understanding of the loan application process. Whether you are applying for a home loan, personal loan, or business loan, knowing the necessary steps and having all the required documents ready can save you time and frustration. - read more
Credit scores play a crucial role in loan applications, determining eligibility and interest rates for borrowers. Understanding how credit scores are calculated and the impact they have on loan applications is essential for anyone who wants to borrow smartly. - read more
As we step into the year 2024, the financial landscape continues to evolve, bringing to the fore the ever-critical subject of interest rates. For anyone considering taking out a loan, whether for a car, a home, or personal expenses, understanding the mechanics of interest rates is not just beneficial; it’s essential. - read more
Understanding your credit score is crucial, especially when you're looking to secure a loan. Whether it's for a home, a car, or personal use, a good credit score can make a significant difference in the type of loan you qualify for and the interest rates you'll be offered. - read more
Need Help Finding a Loan?
Find out now if you qualify and
compare rates, offers and options from multiple lenders - without a credit check!
All finance quotes are provided free (via our secure server) and without
obligation. We respect your
privacy.
Knowledgebase
Bridge Loan: A short-term loan used until a person or company secures permanent financing or removes an existing obligation.
