Stamp duty is usually the largest single cost on top of the purchase price, and for first home buyers it's also the cost the state gives the biggest break on. If you're buying your first home in Victoria, you may pay no duty at all, or a sharply reduced amount, depending on the price.
The savings are significant. On a $600,000 home, the difference between paying full duty and paying nothing is more than $30,000. So it's worth understanding exactly how the first home buyer duty exemption and concession work, and whether you qualify, before you sign anything.
The two thresholds that decide what you pay
Everything turns on the dutiable value of the property, which is usually the contract price (or the property's market value, if that's higher):
If the dutiable value is $600,000 or less, an eligible first home buyer pays no duty at all. This is a full exemption.
If the dutiable value is more than $600,000 but not more than $750,000, an eligible first home buyer gets a concession, calculated on a sliding scale.
If the dutiable value is above $750,000, there's no first home buyer benefit. You pay duty at the ordinary rates.
These thresholds are based on the dutiable value, not your loan size or your deposit. A $599,000 home bought by an eligible first home buyer attracts zero duty. A $650,000 home gets a partial concession, not the full exemption.
What the sliding scale actually means
The concession between $600,001 and $750,000 is not a flat discount. It tapers. The closer the price sits to $600,000, the larger the saving; the closer it sits to $750,000, the smaller the saving, until it disappears entirely at $750,000.
If you would like to understand how much you are likely to pay, you can use our stamp duty calculator. If you want the bigger picture of how duty fits into your overall costs, our guide to budgeting for stamp duty walks through it.
Who counts as a first home buyer
The price thresholds are only half the story. You also have to meet the prescribed eligibility requirements.
To qualify, each buyer must be a natural person, not a company or a trust. Then comes the ownership test. You, and your spouse or partner, must not have:
received a first home buyer duty exemption or concession before; or
owned any residential property in Australia before 1 July 2000.
The partner rule is important here. Eligibility looks at your spouse or partner's history too, not just yours. If your partner has previously owned and lived in a home, that can disqualify both of you, even if you've never owned anything.
There's also a residence requirement. At least one buyer has to move into the property within 12 months of settlement and live there as their home for a continuous period of at least 12 months.
New or established, it doesn't change your duty
The first home buyer duty exemption and concession apply to new and established homes alike. An older house, a renovated terrace, or a brand new apartment are all treated the same way for this purpose, as long as the price and eligibility tests are met.
Where new versus established does matter is the First Home Owner Grant, which is a separate benefit. The grant is a $10,000 payment, and it's available only for a new home that has never been lived in, valued at $750,000 or less. Buy an established home and you can still get the duty exemption, but not the grant.
The two benefits stack. An eligible first home buyer purchasing a new home under $600,000 can pay no stamp duty and receive the $10,000 grant on the same purchase.
Buying off the plan can pull a pricier home under the threshold
If the home you want sits above $600,000, an off the plan purchase is worth understanding, because of how the dutiable value is calculated.
When you buy off the plan, a separate concession lets you deduct the construction or refurbishment costs that happen after the contract date from the property's dutiable value. Duty is charged on what's left, which is often much lower than the contract price. A temporary expansion of this concession currently applies to eligible apartments and townhouses in strata subdivisions, and it has been extended to 20 October 2026 under the State Taxation Acts Amendment Act 2025 (Vic).
Here's why that matters for a first home buyer. If the off-the-plan deduction brings a property's dutiable value down to $600,000 or less, the first home buyer exemption can then apply to that reduced value. In practice, a new apartment with a contract price above $600,000 can sometimes end up with no duty payable at all. The figures depend entirely on the project and the stage of construction at contract, so this is one to model carefully rather than assume.
The off-the-plan rules are temporary and have been extended several times, so confirm what's current before you rely on them.
How the benefit gets claimed
You don't need to apply for anything. Your conveyancer or lawyer claims the exemption or concession through the Digital Duties Form when they prepare the transfer for settlement, and the duty is adjusted accordingly.
That makes it important to flag your first home buyer status early, and to have the contract and dutiable value checked before you sign. The dutiable value, any adjustments, and the duty payable all feed into your final settlement figures, which is what our guide to the statement of adjustments explains. A proper review of the contract and Section 32 is also where issues affecting price and value tend to surface.
What this means for your purchase
The short version: if you're a genuine first home buyer and your home's dutiable value is $600,000 or less, plan on paying no stamp duty. Between $600,000 and $750,000, expect a reduced amount that shrinks as the price rises. Above $750,000, the first home buyer benefit drops away and ordinary rates apply.
Before you commit, it's worth confirming three things: that the dutiable value falls where you think it does, that both you and your partner meet the eligibility tests, and that you can meet the move-in requirement. Getting any of those wrong can turn an expected saving into an unexpected bill. If you're still working out whether your finance will come through in time, our note on subject to finance is a useful companion.
If you'd like us to check a contract and confirm your duty position before you sign, our free contract review covers exactly this, often on the same day. To talk through your situation or get a fixed-fee quote, get in touch.
This article provides general information about Victorian property law. It's not a substitute for legal advice on your specific situation. If you'd like to discuss your circumstances, get in touch.
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