Stamp duty will be paused on new homes below $800,000 and subsidised for properties worth up to $1 million.
The changes will support the construction industry and create more jobs as part of the NSW Government's COVID-19 Recovery Plan.
The threshold above which stamp duty will be charged on new homes for first home buyers will increase from $650,000 to $800,000. The threshold will reduce on higher property values before phasing out at $1 million.
The stamp duty threshold on vacant land will increase from $350,000 to $400,000 and will phase out at $500,000.
Adjustments to the stamp duty thresholds will apply to new homes and vacant land only.
The changes will commence from Saturday 1 August 2020 and will be available for 12 months.
Premier Gladys Berejiklian said the changes will help get more keys into more front doors of more new homes.
"It will boost housing construction across NSW and support jobs in the building industry at a time when we need them more than ever before," Ms Berejiklian said.
The First Home Owner Grant of $10,000 will also continue for first home buyers purchasing a property under $600,000.
More information on the first home buyer assistance schemes will be available on the Revenue NSW website.
