also no stamp duty is not payable upto the threshold:
NSW = 500k www.osr.nsw.gov.au
QLD = 500k www.osr.qld.gov.au
VIC = 500k www.sro.vic.gov.au
SA = 400k and phases out to 450k http://www.revenuesa.sa.gov.au
WA = 500k www.dtf.wa.gov.au
NT = 385k http://www.nt.gov.au/ntt/revenue/home_incentives.shtml
ACT = 333k http://www.revenue.act.gov.au
TAS = 350k http://www.treasury.tas.gov.au/domino/dtf/dtf.nsf/3fa3c1e3fcd2b4c9ca256f250011dda6/61280d00f4627945ca256fc500125765?OpenDocument
Therefor I fail to see how the FHBG is swallowed up by stamp duty, do a little more reading before speaking. The new home buyer in NSW for a 400k property also gets an additional 3k from the state government plus they would save $15,031.00 which is the purchase and mortgage duty.
This saving must really be included in the value of the FHBG which would take the total value on a 400k property in NSW to $32031. No wonder why your view is slightly skewed on realestate, as you appear to have failed to examine all the details.
