Stamp Duty for First Home Buyers

What is Stamp Duty? 

It might go by different names depending on where you live. In Tasmania, it’s ‘Property Transfer Duty’, sometimes in Victoria, it’s called ‘Land Transfer Duty’. But it’s mostly known as ‘Stamp Duty’. 

So what is it? Essentially, it’s a tax from the government that is tacked onto the cost of buying a new home. The bigger the property price tag, the higher the stamp duty.  

The good news is, for first home buyers at least, there are a number of options available for stamp duty concessions or exemptions depending on your situation and which state you live in.  

Do First Home Buyers Pay Less Stamp Duty? 

Speaking of hot chips, it can end up being a bit hot and cold when it comes to where and how First Home Buyers can get Stamp Duty concessions. Different states and territories have their own set of rules and schemes.  

So, if you’re gearing up to dive into the property market, it’s worth sussing out what kind of deals your state or territory is serving up for the first-timers. 

Helpful tip:

As exciting as it is to own a home for the very first time, the sooner you factor stamp duty into the process, the better. Before you sign anything and before you finish calculating deposits, make sure you understand what stamp duty will cost you as early as possible so you don’t get stung with a nasty surprise near the end.

Debbie Shankar

Group Content Manager, Lendi

How does it work in different states and territories? 

Some rules are consistent across the country, and you must be an Aussie citizen or a permanent resident over 18 to access these perks in every state. 

That home sweet home you’re eyeing must be your first dance in the property ownership world (hence the ‘first home buyers’ name), and in most cases, you need to commit to living in that property for at least six months straight.  

Victoria

Down south in the land of four seasons, Victoria’s stamp duty gives you the chance to be in the running for paying less stamp duty if your first home’s dutiable value (which is what stamp duty is based on) is less than $750,000.   

If your first home is $600,000 or less you will receive the first home buyer duty exemption.  If your first home is valued between $600,001 to $750,000, you will receive the first home buyer duty concession. And here’s the cool part – it doesn’t matter if your crib is a new-build or pre-loved; the exemption or concession covers both. You’re still in the game, even if you’re eyeing vacant land. But keep in mind to be eligible, you do have to call your new place home for a solid 12 months straight.  

First Home Buyer Duty Concessions in Victoria 

Source: State Revenue Office VIC – Examples of first home buyer duty concessions 

New South Wales 

Crossing the north border, when you’re not watching rugby league matches, there’s the First Home Buyers Assistance Scheme and the First Home Owner Grant to deal with stamp duty in NSW. 

First, the First Home Buyers Assistance Scheme (FHBAS) in NSW packs a punch – you can snag a full or partial exemption on transfer duty, but there’s a catch. The property’s value must be under $1 million, and once you’ve sealed the deal, you’ve got 12 months to unpack your bags and call it home for a solid year.  

If the contract you signed was on or after 1 July 2023, take a look where your FHBAS threshold fits: 

Source: NSW Revenue – Property Value and Thresholds 

Also, the NSW First Home Owner Grant for new homes throws an extra $10,000 into the mix on top of the Assistance Scheme benefits. To grab this cash, you need to be buying or building your first home, and it has to be a fresh one – no one’s set foot in it before. Keep it under $600,000 (or $750,000 for a house and land package), move in within a year, and stick around for a solid 12 months.  

Australian Capital Territory 

Spend your time exploring the Brindies while looking at The Home Buyer Concession Scheme (HBCS) for stamp duty in the ACT. It requires that the total gross income of everyone in the buyer squad, including partners, can’t surpass the income threshold. Plus, none of the buyers or their partners should have owned another property in the last five years. 

From July 2021, HBC were capped: 

Source: ACT Revenue – Home Buyer Concession Scheme Concession Caps 

The concessions for the HBCS (on or after 1 July 2023) are based on these thresholds: 

Source: ACT Revenue – First Buyer Concessions Thresholds 

Queensland 

Aside from its history of eccentric personalities, Queensland also has a $30,000 first home owner grant, and if you’ve signed a contract to buy or build a new home on or after 20 November 2023, or you’re an owner-builder laying down foundations from the same date, you could be  eligible for this grant.  

To help with the stamp duty, there’s a first home concession available for Queenslanders that allows you to save up to $15,925 for homes valued under $700,000.  

Source: QLD Revenue – Transfer Duty Concessions 

It’s important to know what QLD concessions are available, and how the First Home Concession is different from the Home Concession and the First Home Vacant Land Concession. Looks like Queenslanders are spoiled for choice! 

South Australia 

​​ In South Australia, you might be in for a treat. And we’re not just talking about the sandy shores of West Beach. It’s a first homeowner grant of up to $15,000. The catch? Your new home, be it a house, unit, townhouse, or apartment, needs to be in South Australia and become your main place of residence.  

If you’re a first-home buyer eyeing a new home, off-the-plan apartment, house and land package, or vacant land for your future home in South Australia, relief on land transfer might be in store. The relief kicks in for contracts entered into on or after 15 June 2023, and for eligible homes with a dutiable value of $650,000 or less, it’s full relief, while those between $650,001 and $700,000 get partial relief with a bit of stamp duty still in the mix. But for those who signed a contract on a new home or land on or after 6 June 2024, you may be eligible to be exempt from paying any stamp duty at all. 

Source: SA Revenue – First Home Buyer Relief 

Western Australia 

Like the joy brought on by a quokka’s smile, the first homeowner grant in Western Australia is pretty simple; it is a one-off payment of $10,000 or the consideration paid to buy or build the house if it is less than that amount. 

In terms of stamp duty relief, WA had some recent changes for first home buyers from 9 May 2024.  

Source: WA Gov – Extra Support for first home buyers 

There’s a cap of $50,000 in relief for stamp duty in WA and there are further concessions in place depending on purchase price and when you signed your contract. 

Tasmania 

Waiting for the Tasmanian Devils’ footy season to start? Well, if you’re eligible, you could score the First Home Owner Grant. Now, depending on when you jump into the homeowner game, you could land either a cool $30,000 if you kick things off between 1 April 1 2021, and 30 June2024, or a still pretty sweet $20,000 if you started the journey between 1 July 2016 and 31 March 2021. 

Regarding stamp duty relief, Tasmania’s concessions are a bit different, so let’s see where you fit. 

Source: TAS State Revenue – Property Transfer Duties 

Northern Territory 

Up far, far north, the NT is a bit different when it comes to stamp duty. This is because since 2021, first home buyers are not eligible for any stamp duty concessions or exemptions. Whatever the stamp duty amount is – that’s what you’ll be paying. 

However, there is the House and Land Package Exemption that may apply to you if you acquire new land on which a home will be built. 

And since 2019, first home buyers in the NT have been eligible for a $10,000 First Home Owner Grant .  

Looking for your first home? Compare today. 

Whether you’re scoring a First Home Owner Grant, snagging a Stamp Duty discount, or flying solo without either, you’ve still got some serious mortgage shopping to do. And guess what? We can help on that front. 

We’ve teamed up with Lendi to make the mortgage comparison game a breeze. There is no need for a headache-inducing search – just hop online and start comparing home loans today.