Does the NSW grant apply to a townhouse bought off the plan?

Yes. Revenue NSW lists off-the-plan townhouses, apartments and units among eligible new homes, provided the price is $600,000 or less and you meet the buyer tests. If you need the grant at settlement, you apply through the approved agent handling your finance.

What if my new townhouse costs more than $600,000?

The grant does not apply, even by a dollar, because the cap is on the purchase price. You may still qualify for the duty exemption, which in NSW goes up to $800,000 for contracts exchanged on or after 1 July 2023. Check both schemes' tests, as they are separate.

Do two buyers each get $10,000?

No. Revenue NSW says a single grant is payable per property transaction, not per person. If you buy jointly, at least one of you must be an Australian citizen or permanent resident, and neither of you may have received the grant or owned a home before 1 July 2000, with the exceptions above.

Is the NSW grant taxed or income tested?

No. Revenue NSW says the grant is not means tested and you do not pay tax on it. It is a one-off payment toward the purchase price, and the main condition is that you live in the home for the required time.

Can I claim if I already own property overseas?

Revenue NSW says you can be eligible as long as you have not owned property in Australia before, and a home owned solely as an investment since 1 July 2000 may not rule you out. Ask Revenue NSW to confirm how the rules apply if your history is complicated.

NSW First Home Owner (New Homes) Grant: who gets it and how it works

New South Wales pays a $10,000 First Home Owner (New Homes) Grant to eligible first home buyers of a newly built, off-the-plan or substantially renovated home. A new townhouse qualifies only if the purchase price is $600,000 or less, and a land-plus-building-contract purchase qualifies up to $750,000. These rules were checked against Revenue NSW and nsw.gov.au pages on 7 October 2026.

Checked October 2026. Rules, rates and prices change, so confirm anything that matters with the source linked below.

Which homes and prices qualify

The grant is for homes that nobody has lived in before. Revenue NSW says a townhouse, house, apartment or unit can qualify if it is newly built, bought off the plan or substantially renovated. It is not available for established homes.

Purchase type	Maximum price
New townhouse, house, apartment or unit (including off the plan)	$600,000
Substantially renovated home sold for the first time since the work	$600,000
Vacant land plus a comprehensive home building contract	$750,000

For the land-plus-build case, Revenue NSW adds the land, the building contract and any variations together, and the combined total must stay within the cap. So a $400,000 block, a $330,000 building contract and $15,000 of variations total $745,000 and fit, but $25,000 of variations would push the total to $755,000 and rule it out.

Revenue NSW says a first sale is not a new-home sale if the person who built the home lived in it, leased it out or used it for short-term accommodation, so a townhouse the builder rented out before selling it does not count.

Browse new townhouses

See the townhouse developments selling now, with bedrooms, prices and completion dates, city by city.

Who is eligible

Revenue NSW and nsw.gov.au list these requirements:

Each applicant is at least 18, and you apply as individuals, not through a company or trust (Revenue NSW can waive these in specific cases).
At least one applicant is an Australian citizen or permanent resident. Temporary residents cannot claim, and the benefit cannot be backdated if residency comes later.
Neither you nor your spouse or partner has received a first home owner grant in Australia before.
You did not own residential property in Australia before 1 July 2000, and you have not lived for six continuous months or more in a home you owned on or after that date. If you owned a property after 1 July 2000 but never lived in it for six continuous months or more, you may still qualify.
For contracts signed on or after 1 July 2023, you move in within 12 months and live there as your main home for at least 12 continuous months.

Only one grant is paid per property transaction, not one per buyer. The grant is not means tested and is not taxed. Permanent Australian Defence Force members can be exempt from the residence requirement if everyone is enrolled to vote in NSW.

How the grant fits with the duty exemption

The grant has a lower price cap than the stamp duty exemption for first home buyers. Revenue NSW says the grant can be paid in addition to other exemptions or concessions, and its First Home Buyers Assistance Scheme sets its own thresholds for contracts exchanged on or after 1 July 2023.

Price of a new townhouse	$10,000 grant	Stamp duty (transfer duty)
Up to $600,000	Yes, if eligible	Full exemption, if eligible
$600,001 to $800,000	No	Full exemption, if eligible
$800,001 to $999,999	No	Concessional rate, if eligible
$1,000,000 or more	No	General rates

The two schemes have separate tests and separate claims, so ask your solicitor or conveyancer how the duty exemption is claimed. Our guide to off-the-plan stamp duty in NSW covers the exemption and the payment deferral.

A worked example

A first home buyer signs a contract in October 2026 for a new off-the-plan townhouse priced at $590,000.

Duty at the 2026/27 general rates: $11,602 plus 4.5% of the amount over $387,000.
Amount over $387,000: $590,000 minus $387,000 is $203,000.
4.5% of $203,000 is $9,135, so general duty is $11,602 plus $9,135, which is $20,737.
The price is under $800,000, so a buyer who meets the scheme rules pays no duty.
The price is under $600,000, so the $10,000 grant also applies.

Combined, that is $20,737 of avoided duty plus $10,000 of grant, a total of $30,737. At $650,000 the buyer still avoids duty but gets no grant, because the price is over the $600,000 cap.

How and when to apply

Revenue NSW describes two routes. If you want the grant paid at settlement or at your first loan drawdown or progress payment, you lodge the application with the approved agent providing your finance, usually your bank or lender. If you have already settled or finished construction, you can apply directly to Revenue NSW through its customer portal.

Applications must be lodged within 12 months of settlement or the completed construction date. You will need identity documents, a copy of the contract signed by the vendor, a title search showing you as owner, and, for a new purchase, a statement from the vendor confirming that this is the first sale.

If you are unhappy with a decision, you can lodge an objection or ask for a reassessment within 60 days.

If your plans change

If you move out before living there for 12 continuous months, you must repay the grant. Revenue NSW says that if your circumstances change and you cannot meet the residence requirement, you must contact it immediately, and not doing so can bring a fine of up to $11,000. It also checks applications against data from other agencies, and false or misleading information can lead to a substantial penalty.

The federal 5% Deposit Scheme is a separate program run by Housing Australia, with its own price caps and rules. Housing Australia says using it does not stop you from accessing other state or territory programs, but each program's rules need checking with the organisation that runs it. If you are still comparing projects, you can browse new townhouses in Sydney.

Common questions

Does the NSW grant apply to a townhouse bought off the plan?: Yes. Revenue NSW lists off-the-plan townhouses, apartments and units among eligible new homes, provided the price is $600,000 or less and you meet the buyer tests. If you need the grant at settlement, you apply through the approved agent handling your finance.
What if my new townhouse costs more than $600,000?: The grant does not apply, even by a dollar, because the cap is on the purchase price. You may still qualify for the duty exemption, which in NSW goes up to $800,000 for contracts exchanged on or after 1 July 2023. Check both schemes' tests, as they are separate.
Do two buyers each get $10,000?: No. Revenue NSW says a single grant is payable per property transaction, not per person. If you buy jointly, at least one of you must be an Australian citizen or permanent resident, and neither of you may have received the grant or owned a home before 1 July 2000, with the exceptions above.
Is the NSW grant taxed or income tested?: No. Revenue NSW says the grant is not means tested and you do not pay tax on it. It is a one-off payment toward the purchase price, and the main condition is that you live in the home for the required time.
Can I claim if I already own property overseas?: Revenue NSW says you can be eligible as long as you have not owned property in Australia before, and a home owned solely as an investment since 1 July 2000 may not rule you out. Ask Revenue NSW to confirm how the rules apply if your history is complicated.

Keep reading

Sources

This is general information, not financial, tax or legal advice. Get advice that suits your situation before you buy.