First Home Buyer Stamp Duty Exemption Victoria: How the Exemption and Concession Work
Stamp duty, also known as land transfer duty, is one of the key costs to understand when buying property in Victoria. It can apply when you buy a home, purchase land, or enter into certain property transactions.
For first home buyers, stamp duty can feel confusing because the rules may change depending on the type of property you buy, whether you plan to live in it, and whether you may be eligible for a government exemption or concession.
At Homebuyers Centre Victoria, we help first home buyers understand the new home journey, including how house and land packages work, what to ask early, and where to get the right advice before signing a contract.
What you will learn in this guide:
- What stamp duty is and how dutiable value is calculated?
- The dollar thresholds for the full exemption and the concession and how much you could save.
- Who is eligible, including personal, residency and property requirements?
- How stamp duty works when you build a new home, buy off the plan, or purchase vacant land?
- How the stamp duty exemption relates to the First Home Owner Grant?
- How to claim the exemption through your conveyancer at settlement?
What is stamp duty?
Stamp duty in Victoria is a state tax you pay when you buy or transfer property. It is officially called land transfer duty, and it is charged by the Victorian Government on most property purchases, whether you are buying an established home, a new build or vacant land.
The amount of duty you pay is based on the dutiable value of the property. The dutiable value is the greater of the price you paid or the property’s market value. For off the plan purchases, construction costs incurred after you sign the contract may reduce the dutiable value. For buying vacant land, the duty is assessed on the land valued at the time of purchase, not on the cost of any future building contract.
The exemption and concession for first home buyers are set and administered by the State Revenue Office Victoria (SRO). Homebuyers Centre and our finance partner Resolve Finance can help you understand how stamp duty fits your budget and build, but the SRO determines eligibility.
Do first home buyers pay stamp duty in Victoria?
Some first home buyers in Victoria may be eligible for a stamp duty exemption or concession if they meet the State Revenue Office criteria.
Eligibility may depend on things like whether you are buying your first home, whether you plan to live in the property, your residency status, the property type and the dutiable value of the purchase.
This means two buyers looking at similar homes may have different outcomes depending on their circumstances. That’s why it’s worth checking your eligibility early, before you get too far into the buying process.
How the first home buyer stamp duty exemption and concession work in Victoria
The first home buyer stamp duty exemption or concession in Victoria is based on the dutiable value of the property you are purchasing. Dutiable value generally means the price paid for the property or its market value, whichever is greater.
For eligible first home buyers, the State Revenue Office Victoria applies different stamp duty treatment depending on whether the property sits within the exemption range, concession range or above the current first home buyer threshold.
| Victorian dutiable value | What it means for eligible first home buyers | How to think about it |
|---|---|---|
| Up to $600,000 | Eligible first home buyers may receive a full stamp duty exemption, which means no land transfer duty is payable. | This can make lower-priced homes, new builds or vacant land for a first home more affordable upfront, subject to eligibility. |
| $600,001 to $750,000 | Eligible first home buyers may receive a stamp duty concession, which means a reduced amount of duty applies. | The concession reduces as the dutiable value moves closer to the upper threshold, so it is worth checking the estimate early. |
| Above $750,000 | The first home buyer stamp duty exemption or concession does not apply under the current Victorian first home buyer scheme. | Standard land transfer duty rules may apply, so it is important to confirm costs with your conveyancer, solicitor or the State Revenue Office. |
Good to know
Exemption means eligible first home buyers pay no land transfer duty.
Concession means eligible first home buyers pay a reduced amount of land transfer duty.
Dutiable value is generally the property’s purchase price or market value, whichever is greater.
For vacant land, the State Revenue Office Victoria assesses dutiable value based on the land itself and does not include the value of the building contract.
These Victorian stamp duty thresholds apply to the dutiable value of the property, not the size of your home loan, deposit or repayments. Meeting the value threshold alone does not guarantee eligibility. The State Revenue Office assesses each case against the full eligibility criteria.
To estimate how much stamp duty may apply to your property, use the State Revenue Office land transfer duty calculator or speak with your conveyancer or solicitor. You can also speak with Homebuyers Centre Victoria’s finance partner, Resolve Finance, to better understand borrowing capacity, deposit options, loan structure and repayments.
First home buyer stamp duty checklist
Before choosing a home or land package, it’s worth checking:
- Whether you may be eligible for a first home buyer stamp duty exemption or concession
- Whether the property will be your principal place of residence
- Whether you are buying vacant land, a new home, an established home or an off-the-plan property
- How your land contract and build contract are structured
- When stamp duty may need to be paid
- Who will be lodging your forms for you
- Whether you should use the State Revenue Office calculator for an estimate
This checklist is general only, always best to check with your conveyancer, solicitor, mortgage broker or the State Revenue Office about the process and documentation needed.
Who Is Eligible for the First Home Buyer Stamp Duty Exemption?
Eligibility must be confirmed before submitting the application. You may be eligible if you meet all of the criteria below. Meeting one criterion does not guarantee you qualify, the SRO assesses the full picture. Many states require residency and documentation to apply for stamp duty exemptions.
Personal Eligibility
To be eligible for the first home buyer stamp duty exemption or concession in Victoria, all purchasers must meet the State Revenue Office eligibility criteria.
Generally, this means you must be:
- a natural person, not a company or trust
- at least 18 years old
- an Australian citizen or permanent resident
- buying the property at market value
- purchasing the property to live in as your principal place of residence
You may not be eligible if you, your spouse or your partner have previously owned a home or other residential property in Australia. If you are buying with someone who is not an Australian citizen or permanent resident, foreign purchaser additional duty may also apply.
Stamp duty eligibility depends on your personal situation, the property and how the purchase is structured. Before signing a contract, check the latest State Revenue Office Victoria requirements or speak with your conveyancer, solicitor or mortgage broker.
Residency requirements
To be eligible for the first home buyer stamp duty exemption or concession in Victoria, at least one purchaser must live in the property as their principal place of residence.
This generally means you must move into the home and live there continuously for at least 12 months, starting within 12 months of settlement.
If you are buying vacant land to build your first home, the timing works a little differently. You must move into the completed home by the earlier of:
- 12 months after the occupancy certificate is issued
- 36 months after settlement
Current members of the Australian Army, Navy or Air Force may be exempt from the residency requirement. This exemption does not apply to reservists or Australian Public Service staff.
If your circumstances change and you may not be able to meet the residency requirement, speak with your conveyancer, solicitor, mortgage broker or the State Revenue Office Victoria as soon as possible.
Property eligibility
The first home buyer stamp duty exemption or concession in Victoria can apply to different types of property, including:
- A new home
- An established home
- Vacant land where you intend to build your first home
To be considered, the property must meet the State Revenue Office Victoria requirements, including the relevant dutiable value threshold. If the dutiable value is above the current first home buyer threshold, the first home buyer stamp duty exemption or concession does not apply and standard land transfer duty rules may apply.
Meeting the property value requirement alone does not automatically mean you qualify. The State Revenue Office Victoria assesses eligibility based on the property, the purchaser, residency requirements and all other relevant criteria.
Before signing a contract, check the latest SRO requirements or speak with your conveyancer or solicitor to understand how the rules may apply to your purchase.
Stamp Duty When You Build or Buy a New Home in Victoria
How stamp duty applies depends on whether you are buying an established home, purchasing off the plan, or buying vacant land and building. This section addresses the most common questions for first home buyers entering the property market through a new build.
How stamp duty is assessed when buying vacant land, house and land or a new home
When buying property in Victoria, how much stamp duty you may pay depends on the property value, contract structure, eligibility criteria and whether you are buying a new or existing home, vacant land or an off-the-plan property. For eligible first home buyers, the State Revenue Office may apply a duty exemption or concession, depending on your circumstances.
| Buying option | How stamp duty may be assessed | What first home buyers should check |
|---|---|---|
| Buying vacant land to build | If you are buying vacant land with the intention of building your first home, the dutiable value may be assessed on the land value only. This means the value of your building contract or future construction costs may not be included when assessing the vacant land for first home buyer duty purposes. | Check whether the land is vacant land intended for your principal place of residence, whether you meet the first home buyer eligibility criteria, and whether you may be eligible for a stamp duty exemption or concession. |
| House and land packages | For a house and land package, stamp duty may depend on how the property purchase is structured. In many cases, buying vacant land and entering into a separate building contract can be different to buying an established home at market value. | Ask how your land contract and build contract are structured, when transfer duty may be payable, and it is always best to check who will be lodging your stamp duty documents with the State Revenue Office. |
| Off-the-plan purchases | Some off-the-plan purchases in Victoria may be eligible for a duty concession if they meet the State Revenue Office requirements. This can affect the dutiable value used to calculate stamp duty payable, but it does not automatically apply to every new build or house and land purchase. | Confirm whether the property is an eligible off-the-plan purchase, whether it forms part of a strata subdivision with common property, and whether the temporary duty concession applies to your purchase. |
| New or existing home | A first home buyer duty exemption or concession may apply to a new or existing home, or vacant land where you intend to build your first home, provided the property and purchaser meet the Victorian Government requirements. | Check the property value, whether the home will be your principal place of residence, whether you are an Australian citizen or permanent resident, and whether you meet all eligibility criteria. |
| Finance, grants and upfront costs | Stamp duty, transfer duty, deposits, grants, concessions and construction finance can all affect your upfront costs when buying your first property. A stamp duty saving may help, but it should be considered alongside your full budget and borrowing position. | Speak with your conveyancer, mortgage broker or solicitor about duty savings and eligibility. |
Good to know
Meeting one stamp duty requirement does not automatically mean you qualify for a full exemption, duty concession or other home buyer concessions. The State Revenue Office assesses eligibility based on the property, dutiable value, purchaser details, residency requirement and other criteria.
Homebuyers Centre Victoria can help you explore house and land packages and understand the build journey. Resolve Finance can help with lending guidance, while your conveyancer, solicitor or the State Revenue Office can confirm how stamp duty applies to your property purchase.
How to apply for the first home buyer stamp duty exemption
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1. Check whether you may be eligible
Before you rely on any stamp duty exemption or concession, check the personal, residency and property requirements. Your eligibility will depend on your circumstances, the property and the State Revenue Office Victoria criteria. -
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2. Speak with Resolve Finance about your budget
Your stamp duty position can affect your upfront costs, deposit, loan structure and borrowing capacity. Our finance partner, Resolve Finance, can help you understand how these pieces may fit together before you commit to a home or land package. -
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3. Sign your contract of sale
Once you have found the right property and are ready to move forward, your conveyancer or solicitor will guide you through the contract of sale before signing. -
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4. Your conveyancer completes the Digital Duties Form
Your conveyancer or solicitor will usually complete the Digital Duties Form and include the details needed to claim the first home buyer duty exemption or concession. If more information is needed, the State Revenue Office may contact you or your representative. -
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5. Duty is assessed as part of settlement
The State Revenue Office assesses the duty based on the information lodged. If you are eligible, the exemption or concession is applied as part of the duty process. Homebuyers Centre Victoria can help you understand the build journey, while Resolve Finance can help you get clearer on borrowing capacity, deposit options and repayments. For stamp duty eligibility and legal requirements, speak with your conveyancer, solicitor or the State Revenue Office.
Frequently Asked Questions
Stamp duty, officially called land transfer duty, is a state tax you pay stamp duty on when buying property or when you transfer property in Victoria. It is charged on the dutiable value of the property, which is the greater of the purchase price or the market value.
Yes. In Victoria, stamp duty is commonly referred to as land transfer duty. Both terms are often used when talking about the cost of buying property.
Not always. Eligible first home buyers may pay no stamp duty at all if the property’s dutiable value is $600,000 or less (a full exemption). If the dutiable value is between $600,001 and $750,000, a concession applies and you pay a reduced amount. Above $750,000, standard duty rates apply.
It can be.
A house and land package may involve a land contract and a build contract, which can affect how stamp duty is assessed. If you are buying land to build your first home, the State Revenue Office may assess the dutiable value differently to an established home, depending on your eligibility and contract structure.
Yes, stamp duty applies to new builds and house-and-land packages, but how much depends on the structure of your purchase. If you buy vacant land and sign a separate building contract, the duty is generally assessed on the land only, not the total cost. If you buy off the plan, the off-the-plan concession may reduce the dutiable value. Many new homes sit under the $600,000 or $750,000 thresholds. First home buyers with a dependent child can get exemptions under $150,000 under a separate scheme.
e.
The State Revenue Office is responsible for land transfer duty in Victoria. Your conveyancer, solicitor or bank will usually help complete the required forms and manage payment as part of settlement.
No. Your conveyancer lodges the stamp duty claim with the SRO at settlement. Homebuyers Centre helps you understand how stamp duty, home buyer concessions, and grants work, and connects you with Resolve Finance for lending advice. We do not determine eligibility, lodge the duty, or provide financial advice. For guidance on how stamp duty fits into your build, chat with us or Resolve Finance.
In the 2024-25 Victorian financial year, 27,439 first home buyers purchased properties valued at $600,000 or less and paid no land transfer duty, while another 14,769 first home buyers purchased homes between $600,001 and $750,000 and received a concession. Total savings from these exemptions and concessions were about $825.6 million. If you are ready to step onto the property ladder, understanding the stamp duty exemption is one of the most valuable things you can do before buying property in Victoria.
Yes. It’s a good idea to understand possible stamp duty costs early so you can plan your budget, compare options and know what may be due at settlement.