NSW Cracks Down on Abuse of First-Home Buyer Benefits

3

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."

Published:Monday, 2nd Sep 2024
Source: Paige Estritori

Share this news item:

Finance News

Clear

Commonwealth Bank Challenges RBA's Card Fee Reform

12 Sep 2025: Paige Estritori

Australia’s leading financial institution, the Commonwealth Bank of Australia, has openly criticised the Reserve Bank of Australia (RBA) for its calculations related to a proposed reduction in debit and credit card transaction fees. The RBA suggested that the reform would save Australian businesses $1.2 billion annually and benefit the majority of companies, a claim that the Commonwealth Bank strongly disputes. - read more

Ongoing Consumer Spending Surge Threatens Future Interest Rate Cuts

11 Sep 2025: Paige Estritori

Amid a period of robust consumer spending, Australia's mortgage holders may face limited future interest-rate cuts. The Commonwealth Bank has observed Australians increasing their spending over the last six months, spurred by rising incomes, a robust job market, and previously lowered interest rates. - read more

CSLR Funding Concerns as Special Levy Decision Remains Pending

11 Sep 2025: Paige Estritori

The Compensation Scheme of Last Resort (CSLR) recently highlighted potential delays in compensation payments due to insufficient special levy funds. In July, the CSLR's proposed FY2025–26 levy plan allocated $67.29 million for financial advisers, surpassing the $20 million limit set for the subsector. This shortfall of $47.29 million prompted the Treasury to initiate a consultation in August to determine funding solutions for the excess levy. - read more

Retiree Surge to Drive Demand for Financial Advisers in Australia

10 Sep 2025: Paige Estritori

A recent study by Adviser Ratings, as outlined in the 2025 Australian Financial Advice Landscape Report, indicates that the number of financial advisers in Australia will need to increase significantly. From the present count of 15,500 advisers, the industry is expected to require more than 50,000 over the next thirty years to cater to a growing retiree population. - read more

FAAA Advocates Balance in Non-Compete Reform for the Financial Sector

10 Sep 2025: Paige Estritori

The Australian government is examining potential reforms to non-compete clauses in employment contracts, driven by concerns that current laws may impede workers from advancing their careers and, in turn, hinder economic growth. In this context, the Financial Advice Association Australia (FAAA) has raised concerns about these reforms, urging that the proposed changes should balance the interests of both employees and employers. - read more

Click for more Finance News