Government crackdown sees $9 million recovered from first-home buyer program non-compliance

It has been confirmed 718 targeted investigations into the state government scheme were conducted in the 2023/24 financial year, resulting in 422 individuals having to pay back some or all of their stamp duty discount.

Chief commissioner of state revenue Scott Johnston said the success of the clawback was a warning to property seekers not to “try to game the system”.

Revenue NSW says investigations into non-compliance with the scheme occur when its data match program flags a concern. This data is a collation of information from the NSW Government Rental Bonds Board, the Australian Taxation Office, the Department of Home Affairs and various other Commonwealth agencies.

First-home buyers under the Minns Labor government program are eligible to pay discounted stamp duty or not at all, providing the purchase price of the property is under $1 million and the buyer moves into the property within a year and lives there continuously for at least 12 months.

Revenue NSW confirmed its successful findings in the 422 cases represents around 1.3% of all successful applications to the First Home Buyers Assistance Scheme.

“This program is clearly working, helping more than 30,000 people in their first homes,” minister for finance Courtney Houssos said. “Revenue NSW’s compliance team is working hard to make sure that only those eligible for the scheme are able to use it.”

She added: “We want as many people as possible to access the scheme – but they have to stick to the rules. It keeps the program fair and accessible for everyone.”

Want to work out what you might need to pay? Click here to see the Mortgage Choice stamp duty calculator