Understanding Stamp Duty Concessions for First Home Buyers in Australia

Stamp duty is one of the largest upfront costs when purchasing a property in Australia. For first home buyers, this tax can be a significant barrier to entering the property market. However, all Australian states and territories offer stamp duty concessions or exemptions to eligible first home buyers, which can save tens of thousands of dollars. Understanding how these concessions work, the eligibility criteria, and the application process is crucial for anyone looking to buy their first home.

This comprehensive guide explains stamp duty concessions for first home buyers across Australia as of 2025. We break down the rules for each state and territory, highlight recent changes, and provide practical tips to help you maximize your savings.

What is Stamp Duty?

Stamp duty, also known as transfer duty, is a state government tax on property transactions. It is calculated based on the property’s purchase price or market value, whichever is higher. The amount varies by state and can add tens of thousands of dollars to the cost of buying a home. For first home buyers, this cost can be a major hurdle, but concessions and exemptions are designed to make home ownership more accessible.

Stamp duty is typically payable within 30 days of settlement, though some states allow extensions. The revenue generated contributes to state budgets for infrastructure, health, and education. However, for first home buyers, the focus is on minimizing this cost through available schemes.

How Do Stamp Duty Concessions Work?

Stamp duty concessions reduce or eliminate the duty payable for eligible first home buyers. The specifics—such as property value thresholds, whether it’s a full exemption or a sliding scale concession, and additional conditions—vary by state and territory. Generally, concessions apply to both new and established homes, but some states offer extra benefits for new builds to stimulate construction.

Eligibility typically requires that the buyer be an Australian citizen or permanent resident, be at least 18 years old, and not have previously owned property in Australia. The property must be your principal place of residence, and you usually need to move in within 12 months and live there for a continuous period (often six to twelve months).

Below, we detail the schemes in each state and territory as of 2025, including recent updates and thresholds.

State-by-State Breakdown of First Home Buyer Stamp Duty Concessions

New South Wales (NSW)

In NSW, the First Home Buyer Assistance Scheme (FHBAS) provides exemptions or concessions on transfer duty for eligible first home buyers purchasing a new or existing home. As of 1 July 2023, the thresholds were significantly increased under the former government’s policy, and these remain in effect in 2025.

Full exemption: For properties up to $800,000.
Concessional rate: On a sliding scale for properties between $800,001 and $1,000,000.
No concession: For properties over $1,000,000.

The concession is calculated as a percentage reduction in duty, phasing out as the price increases. For example, a property priced at $900,000 would receive a partial concession, reducing the duty from around $36,000 to approximately $18,000 (exact amounts depend on the sliding scale).

Additionally, NSW offers the First Home Buyer Choice (FHBC) scheme, which allows first home buyers to opt for an annual property tax instead of upfront stamp duty on properties up to $1.5 million. However, as of 2025, this scheme is only available for contracts exchanged before 1 July 2023, and the current government has not extended it. New buyers must pay stamp duty but can benefit from the FHBAS.

Eligibility criteria:

Must be an individual (not a company or trust).
At least 18 years old.
Must not have previously owned or co-owned residential property in Australia.
At least one buyer must be an Australian citizen, permanent resident, or New Zealand citizen with a special category visa.
The property must be occupied as your principal place of residence for a continuous period of at least 6 months, starting within 12 months of settlement.

For more details, visit the NSW Government website.

Victoria (VIC)

In Victoria, the First Home Buyer Duty Exemption or Concession is available for eligible purchases. The thresholds were updated on 1 July 2024 as part of the Victorian Budget 2024-25, increasing the concession limits to keep pace with property prices.

Full exemption: For properties with a dutiable value up to $600,000.
Concessional rate: For properties with a dutiable value from $600,001 to $750,000.
No concession: For properties over $750,000.

The concession is calculated as a sliding scale: for every dollar over $600,000, the duty concession reduces. For instance, a property valued at $700,000 would receive a significant discount compared to standard rates.

Victoria also offers the First Home Owner Grant (FHOG) of $10,000 for new homes valued up to $750,000, which is separate from stamp duty.

Eligibility criteria:

Must be an Australian citizen or permanent resident (or New Zealand citizen with a special category visa).
At least 18 years old.
Must not have previously owned or received a first home buyer grant or concession in Australia.
The property must be your principal place of residence for at least 12 months, commencing within 12 months of settlement.
Can be an established or new home, but the FHOG only applies to new builds.

For official information, see the State Revenue Office Victoria.

Queensland (QLD)

Queensland offers the First Home Concession on transfer duty for first home buyers. As of 2025, the thresholds are:

Full exemption: For properties valued up to $500,000.
Concessional rate: For properties valued between $500,001 and $550,000.
No concession: For properties over $550,000.

The concession is a sliding scale, with the maximum duty payable for a $550,000 property capped at a reduced amount. For example, a home valued at $525,000 would attract a concession, reducing duty from around $9,750 to approximately $5,000.

Queensland also provides the First Home Owner Grant of $15,000 for new homes valued under $750,000.

Eligibility criteria:

Must be at least 18 years old.
Must not have previously owned residential property in Australia or claimed a first home concession.
Must be an Australian citizen, permanent resident, or New Zealand citizen with a special category visa.
Must move into the property within 1 year and live there for at least 6 months.
The property can be established or new, but the FHOG is only for new builds.

Visit the Queensland Government website for more information.

Western Australia (WA)

Western Australia provides a First Home Owner Duty Concession for eligible buyers. The current thresholds, effective since 2023, are:

Full exemption: For properties with a dutiable value up to $430,000.
Concessional rate: For properties with a dutiable value from $430,001 to $530,000.
No concession: For properties over $530,000.

The concession is a sliding scale, phasing out completely at $530,000. For a property valued at $500,000, the duty concession could save around $10,000.

WA also offers the First Home Owner Grant of $10,000 for new homes valued up to $750,000 (or up to $1 million for regional areas).

Eligibility criteria:

Must be an Australian citizen or permanent resident.
At least 18 years old.
Must not have previously owned or held an interest in residential property in Australia.
The property must be your principal place of residence for at least 6 months, starting within 12 months of settlement.
Applies to both new and established homes.

For details, see the WA Government Department of Finance.

South Australia (SA)

South Australia offers a First Home Buyer Stamp Duty Relief scheme. As of 2025, the relief is:

Full exemption: For properties with a market value up to $650,000.
Partial concession: For properties valued between $650,001 and $700,000.
No concession: For properties over $700,000.

The partial concession is calculated on a sliding scale, reducing the duty payable. For a $675,000 property, the concession could halve the standard duty.

SA also provides the First Home Owner Grant of $15,000 for new homes valued up to $650,000.

Eligibility criteria:

Must be an Australian citizen, permanent resident, or New Zealand citizen with a special category visa.
At least 18 years old.
Must not have previously owned or acquired a residential property in Australia.
Must occupy the home as your principal place of residence for at least 6 months, starting within 12 months of settlement.
Applies to both new and established homes.

For more information, visit RevenueSA.

Tasmania (TAS)

Tasmania provides a First Home Buyer Duty Concession for eligible purchasers. As of 2025, the thresholds are:

Full exemption: For properties with a dutiable value up to $600,000.
Concessional rate: For properties valued between $600,001 and $750,000.
No concession: For properties over $750,000.

The concession is a sliding scale, with the discount decreasing as the price increases. For a $700,000 property, the concession could reduce duty by approximately 50%.

Tasmania’s First Home Owner Grant is $30,000 for new homes valued up to $750,000, one of the most generous in Australia.

Eligibility criteria:

Must be an Australian citizen, permanent resident, or New Zealand citizen with a special category visa.
At least 18 years old.
Must not have previously owned or received a first home grant or concession in Australia.
The property must be your principal place of residence for at least 6 months, starting within 12 months of settlement.
Applies to both new and established homes.

See the State Revenue Office of Tasmania for details.

Australian Capital Territory (ACT)

The ACT operates under a unique system where stamp duty is being phased out and replaced with a general rates system. The Home Buyer Concession Scheme provides stamp duty concessions for eligible first home buyers and other home buyers. As of 2025, the thresholds are:

Full exemption: For properties with a dutiable value up to $1,000,000.
Concessional rate: For properties valued between $1,000,001 and $1,455,000.
No concession: For properties over $1,455,000.

The concession is income-tested, with full exemption available to households with a total gross income below $170,000 (thresholds vary based on number of dependents).

Eligibility criteria:

Must be an Australian citizen, permanent resident, or New Zealand citizen.
At least 18 years old.
Must not have owned property in the past two years.
Income limits apply.
Must occupy the property as your principal place of residence for at least 12 months.

For more information, visit the ACT Revenue Office.

Northern Territory (NT)

The Northern Territory offers the First Home Owner Discount (FHOD) on stamp duty for eligible first home buyers. As of 2025, the discount is:

Full exemption: For properties valued up to $650,000.
Partial concession: For properties valued between $650,001 and $750,000.
No concession: For properties over $750,000.

The FHOD provides a 50% discount on stamp duty for properties in the partial range, up to a maximum discount of $10,000.

NT also offers the First Home Owner Grant of $10,000 for new homes valued up to $750,000.

Eligibility criteria:

Must be an Australian citizen or permanent resident.
At least 18 years old.
Must not have previously owned residential property in Australia.
Must occupy the home as your principal place of residence for at least 6 months, starting within 12 months of settlement.
Applies to both new and established homes.

Visit the NT Government website for details.

Comparison of Stamp Duty Concessions Across States

The following table summarizes the stamp duty concession thresholds for first home buyers across Australian states and territories as of 2025. Note that these thresholds are for full exemptions; partial concessions apply above these amounts up to a cap.

State/Territory	Full Exemption Threshold	Concession Cap	Notes
NSW	Up to $800,000	$1,000,000	Sliding scale concession from $800k to $1m
VIC	Up to $600,000	$750,000	Sliding scale from $600k to $750k
QLD	Up to $500,000	$550,000	Sliding scale from $500k to $550k
WA	Up to $430,000	$530,000	Sliding scale from $430k to $530k
SA	Up to $650,000	$700,000	Sliding scale from $650k to $700k
TAS	Up to $600,000	$750,000	Sliding scale from $600k to $750k
ACT	Up to $1,000,000	$1,455,000	Income-tested; sliding scale to $1.455m
NT	Up to $650,000	$750,000	50% discount up to $10k max for partial

Data sourced from respective state revenue offices, 2025.

How Much Can First Home Buyers Save?

Stamp duty concessions can save first home buyers tens of thousands of dollars. For example, in NSW, purchasing an $800,000 home attracts no stamp duty, saving approximately $31,000 compared to standard rates. In Victoria, a $600,000 purchase saves around $31,000 as well. Even partial concessions can result in significant savings: in Queensland, a $525,000 home might save $4,750 in duty.

These savings can be redirected towards a larger deposit, reducing the loan-to-value ratio (LVR) and potentially avoiding lenders mortgage insurance (LMI). In some cases, the concession can be the difference between being able to purchase or not.

Eligibility Criteria: What You Need to Know

While specific criteria vary, common requirements include:

Residency: Must be an Australian citizen, permanent resident, or eligible New Zealand citizen.
Age: Usually at least 18 years old.
First home buyer status: Must not have previously owned or co-owned residential property in Australia. Some states consider if you’ve claimed a first home grant or concession before.
Occupancy: Must move into the property within 12 months and live there continuously for 6-12 months.
Property type: Generally applies to any residential property, but some grants require a new build.
Income limits: Only the ACT has income tests for stamp duty concessions; other states do not.

It’s essential to check the specific rules in your state, as they can change. For instance, some states exclude investment properties or require that the property be your principal place of residence.

How to Apply for a Stamp Duty Concession

Applying for a stamp duty concession is typically done through your solicitor or conveyancer as part of the property settlement process. They will lodge the necessary forms with the state revenue office. In most cases, the concession is applied at settlement, reducing the amount payable upfront.

Steps to apply:

Confirm eligibility with your conveyancer.
Complete the relevant application form (e.g., First Home Buyer Assistance Scheme application in NSW).
Provide supporting documents: proof of identity, citizenship/residency, and a statutory declaration confirming you haven’t owned property before.
Your conveyancer lodges the application with the state revenue office.
The concession is assessed, and if approved, the reduced duty is payable at settlement.

Some states allow you to apply for the concession before settlement to ensure timely processing. It’s advisable to start early to avoid delays.

Recent Changes and Future Outlook (2025-2026)

In recent years, several states have adjusted their thresholds to account for rising property prices. For example:

NSW increased its full exemption threshold from $650,000 to $800,000 in 2023.
Victoria raised its concession cap from $600,000 to $750,000 in 2024.
The ACT continues to expand its concession thresholds as part of stamp duty reform.

Looking ahead to 2025-2026, there is pressure on states like Queensland and Western Australia to lift their thresholds, as median house prices in capitals like Brisbane and Perth have surged. Policy changes may occur in upcoming budgets, so first home buyers should stay informed via official sources.

For the latest updates, refer to the Australian Government’s First Home Buyer page.

Tips for Maximizing Your Stamp Duty Savings

Research state-specific schemes: Each state has different thresholds and additional grants. For example, Tasmania’s $30,000 FHOG can significantly boost your deposit.
Consider new builds: Some states offer higher grants for new construction, which can be combined with stamp duty concessions.
Check for regional variations: In WA, the FHOG cap is higher for regional areas, and some states have additional incentives for regional buyers.
Use a mortgage broker: A broker can help you navigate the schemes and ensure you’re claiming all available benefits. They can also advise on lenders that recognize concessions for deposit purposes.
Act quickly: Concessions are often subject to budget changes. If you’re eligible, lock in your purchase before thresholds potentially change.
Understand the contract date: Concessions are usually based on the date of contract exchange, not settlement. If you exchange before a deadline, you may be eligible even if settlement occurs later.

Frequently Asked Questions (FAQ)

Can I claim a stamp duty concession if I’ve owned property overseas?

In most Australian states, the first home buyer concession only considers ownership of residential property in Australia. If you’ve owned property overseas but not in Australia, you may still be eligible. However, you must meet all other criteria, including being an Australian citizen or permanent resident. Check with your state revenue office for specific rules.

Do stamp duty concessions apply to investment properties?

No. Stamp duty concessions for first home buyers require that the property be your principal place of residence. You must move in within the specified timeframe and live there for the required period. If you purchase as an investment, you will not be eligible for the concession.

Can I use the stamp duty concession with other grants?

Yes. In most states, the stamp duty concession is separate from the First Home Owner Grant (FHOG) and other schemes like the First Home Loan Deposit Scheme. You can usually combine them, subject to meeting each scheme’s eligibility criteria. For example, in Victoria, you can receive both the duty exemption and the $10,000 FHOG for a new home under $600,000.

What happens if I don’t meet the occupancy requirement?

If you claim a concession but fail to occupy the property as your principal place of residence for the required period, you may have to pay back the full stamp duty plus penalties. The state revenue office can investigate and demand repayment. It’s crucial to comply with the conditions.

Are there any concessions for non-first home buyers?

Some states offer concessions for other groups, such as pensioners, deceased estates, or off-the-plan purchases. However, these are separate from first home buyer schemes. For example, the ACT’s Home Buyer Concession Scheme is available to all home buyers, not just first timers, subject to income limits.

References

![First home buyer couple looking at house plans]( Young couple celebrates buying their first house with keys in hand and a sold sign. Photo by Thirdman on Pexels )