Buying your first home is a big milestone, but it also comes with a range of upfront costs - and one of the biggest is stamp duty. The good news is that most states and territories in Australia offer concessions or exemptions for eligible first home buyers, which can help reduce the amount you pay - or even eliminate it completely.
This guide explains how stamp duty works for first home buyers, what concessions are available in each state, and how to check if you qualify.
What Is Stamp Duty?
Stamp duty (also called transfer duty) is a tax charged by state and territory governments when you buy a property. The amount depends on:
- The purchase price of the property
- The location of the property (state or territory)
- Whether the property is new or existing
- Whether you’re eligible for any concessions
As a first home buyer, you may be eligible for a full exemption, a discounted rate, or a rebate, depending on where you’re buying and how much the property costs.
Who Qualifies as a First Home Buyer?
To qualify for first home buyer stamp duty concessions, most states require that:
- You have never owned property in Australia before
- You are an individual, not a company or trust
- You are an Australian citizen or permanent resident
- You will live in the property as your home for a set period (usually 6-12 months)
Some states may allow you to access benefits if you’ve previously owned property but haven’t lived in it (e.g. investment property), but this varies.
Stamp Duty Concessions by State
New South Wales (NSW)
- Full exemption: For new or existing homes priced up to $800,000
- Discounted duty: Applies to homes priced between $800,000 and $1 million
- Eligibility: You must move in within 12 months and live there for at least 6 continuous months
Victoria (VIC)
- Full exemption: Homes valued up to $600,000
- Concession: Discounted duty on homes between $600,001 and $750,000
- Extra benefit: First Home Owner Grant may apply for new builds
Queensland (QLD)
- Concession: Up to $15,925 off for homes under $550,000
- Partial concession: For homes priced up to $599,999
- Vacant land: Concessions also apply for land valued under $400,000
Western Australia (WA)
- Full exemption: Homes up to $430,000
- Concession: Discounted duty for homes between $430,001 and $530,000
- Vacant land: Duty-free up to $300,000
South Australia (SA)
- SA does not offer stamp duty concessions for first home buyers (as of current policies), but the First Home Owner Grant may be available for new homes.
Tasmania (TAS)
- 50% discount: On homes priced up to $600,000
- Must be your principal place of residence within 12 months of settlement
Australian Capital Territory (ACT)
- Uses a different system: A Home Buyer Concession Scheme
- Eligibility based on income, number of dependents, and whether you're a first home buyer
Northern Territory (NT)
- No specific stamp duty exemptions, but the First Home Owner Grant and Home Buyer Initiative may offer support for new builds
How Much Can You Save?
Stamp duty can cost tens of thousands of dollars, especially in higher-priced areas. Here's a rough idea of potential savings:
- NSW: Save up to $30,000+ on an $800,000 home
- VIC: Save up to $31,000 on a $600,000 home
- QLD: Save up to $15,925
- WA: Save up to $14,440
Check with your state or territory revenue office or our up-to-date stamp duty calculator.
What If You’re Buying with Someone?
If you're buying with a partner or family member, both of you must meet the first home buyer criteria to qualify for full benefits. If only one of you qualifies, the duty may be calculated on a pro-rata basis, or you may miss out entirely - depending on the state.
Tips to Maximise Concessions
- Buy under the threshold - Even $1 over may disqualify you from a full exemption.
- Check your contract date - Eligibility is often based on when you signed, not when you settle.
- Plan to move in quickly - You must usually live in the property within 12 months.
- Don’t apply too late - Some concessions must be applied for within a certain time after settlement.
Summary
Stamp duty can be a major cost when buying your first home, but most states offer generous support to help reduce the burden. By understanding the rules in your state and planning carefully, you could save thousands - or avoid stamp duty altogether.
Before signing a contract, always check the latest eligibility rules and use our stamp duty calculator to estimate costs.