Stamp duty is often the single biggest surprise cost for first home buyers — and the rules vary in every state. This guide explains exactly how much you’ll pay in 2026 for first home buyers stamp duty, and how to legally reduce or avoid it using concessions, rebates, and timing strategies. Whether you’re buying to live in, purchasing land, or even buying a home with tenants, an expert mortgage broker can help you structure your purchase for maximum savings.
Let’s dive in
What Is Stamp Duty?
Stamp duty is a state-based tax levied on property transactions, including the purchase or transfer of land. While the specifics vary across Australia, the funds collected typically support essential services such as infrastructure, healthcare, and emergency services.
As property prices have risen, so too have stamp duty costs, often catching first home buyers by surprise. Understanding how stamp duty is calculated and the potential savings available through concessions and rebates can significantly impact your home-buying budget.
How Is Stamp Duty Calculated?
Stamp duty calculations differ between states and territories, but common factors influencing the cost include:
- Property Value: The higher the property’s value, the higher the stamp duty.
- Property Type: Different rates apply to established homes, off-the-plan purchases, and vacant land.
- Buyer Status: First home buyers may be eligible for exemptions or concessions, reducing their stamp duty liability.
- Residency Status: Foreign buyers often face additional surcharges.
For instance, purchasing a $450,000 home in Queensland requires an 8–10% deposit (approximately $45,000), plus an additional $1,365 in stamp duty. In contrast, the Australian Capital Territory imposes a stamp duty of $10,262 on the same property value.
Stamp Duty Rates by State and Territory
The following table provides a snapshot of the maximum stamp duty rates applicable in each state and territory as of 2026:
State/Territory | Maximum Stamp Duty Rate |
New South Wales | $45,000+ |
Victoria | $40,000+ |
Queensland | $13,350+ |
Western Australia | $30,311+ |
South Australia | $21,330+ |
Tasmania | $10,000+ |
Australian Capital Territory | $10,262+ |
Northern Territory | $11,000+ |
Note: Rates are indicative and subject to change. Always consult the relevant state or territory revenue office for the most current information.
The good news is that First Home Buyers are offered different concessions depending on their state. We will cover each of these below.
What Is Stamp Duty Concession?
Stamp duty concession is the discount offered to first-home buyers by the government. These discounts are meant to reduce the cost of buying a home and allow homebuyers to enter the market faster. The eligibility criteria for stamp duty concessions differ from state to state.
You need to fulfil a specific criterion to be eligible for the First Home buyers stamp duty concession in Queensland.
(Don’t worry; we cover the other states like NSW and VIC below)
So In QLD, you’ll be eligible for the first home buyers stamp duty discount if you:
You are over 18 years of age
You have never owned land or a residence in Australia or overseas
You will live in the property daily within one year of settlement
You will not move possession of the property into someone else’s name before you move in
You will pay market value if the property is between $500,001 and $549,999
Read More: Stamp Duty Calculator Queensland
First Home Buyer Stamp Duty Discounts By State
First Home Buyer Stamp Duty Concession QLD
Queensland has introduced major stamp duty reforms to help first-home buyers enter the market sooner.
What Changed on 1 May 2025
- New homes now qualify for a full transfer duty exemption. This means eligible buyers pay zero stamp duty when purchasing a brand-new or substantially renovated property.
- Vacant residential land purchased to build a first home is also exempt. As long as construction begins within the required timeframe, buyers will still receive full relief.
- There is no price cap on the exemption. Whether the property is $450,000 or $1.2 million, eligible buyers receive the same benefit.
- Established homes still use the previous First Home Concession system. Buyers of existing properties will receive reduced stamp duty, but not a full exemption.
These changes were introduced under the Revenue Legislation Amendment Act 2025. The goal is to boost new housing construction and increase affordability.
Who Qualifies?
To access the exemption or concession, you must:
- Be at least 18 years old. The government requires all applicants to be legal adults at the time of signing.
- Never have owned residential property in Australia or overseas. Even previous investment ownership can disqualify you.
- Sign the purchase contract on or after 1 May 2025. Earlier contracts cannot be shifted to the new rules.
- Move into the property as your primary residence within 12 months. Temporary delays may be accepted but must be justified.
- Live in the property continuously for at least one year. Breaking this rule could trigger a stamp duty clawback.
- For vacant land buyers, construction must generally begin within two years. Extensions may be granted in special circumstances.
Old vs New System — Quick Comparison
Scenario | Before May 2025 | After May 2025 |
New home | Concession only up to value caps | Full exemption regardless of price |
Vacant land | Partial duty reduction only | Full duty removal for eligible builds |
Established home | Standard First Home Concession | No change — still concessional only |
Estimated Savings
- Brisbane East buyers could save around $29,500. This removes one of the biggest upfront costs in the buying process.
- Toowoomba buyers may see savings of about $24,700. This can be redirected towards deposits or moving costs.
- Median home and land buyers statewide could save around $9,900. Even regional buyers now benefit from stronger support.
Additional Tips & Notes
- The First Home Owner Grant is extended until 30 June 2026. Buyers combining the grant with the duty exemption can stack their savings.
- Buyers can now rent out a room after moving in without losing their concession. This makes rentvesting-style strategies more flexible.
- Make sure you use updated application forms. Using outdated documents can slow down settlement.
- Contracts signed before 1 May 2025 still follow the old rules. Your solicitor or broker can confirm which category you fall into.
New South Wales First Home Buyer Stamp Duty Discounts
New South Wales continues to support first home buyers through the First Home Buyers Assistance Scheme, which offers full or partial transfer duty relief depending on purchase price and contract date.
What First Home Buyers Can Claim
- No stamp duty on homes up to $800,000. This applies to both new and existing homes and eliminates one of the biggest upfront costs.
- Discounted duty on homes between $800,000 and $1,000,000. This concessional rate applies to contracts entered on or after 1 July 2025. Buyers pay a reduced sliding-scale amount instead of the full duty.
- No duty on vacant land up to $350,000. This applies only if the land is used to build a first home.
- Concessional rates for land valued between $350,000 and $450,000. The closer the price is to $350,000, the larger the reduction.
Who Is Eligible?
To use the scheme, you must:
- Be an individual aged 18 or over. Companies and trusts do not qualify.
- Be an Australian citizen or permanent resident. At least one purchaser must meet this requirement.
- Never have owned residential property anywhere in Australia. Even investment ownership counts as previous ownership.
- Sign the contract on or after 1 July 2023 for full exemptions, or on or after 1 July 2025 for the updated concessional duty range.
- Move into the property within 12 months of settlement and live there for at least 12 continuous months. Failure to comply may trigger a reassessment.
Why This Matters for Buyers
- The policy removes thousands in upfront costs, helping buyers enter the market sooner.
- However, the $800,000 full exemption cap is increasingly tight in Sydney, where many entry-level homes exceed $900,000.
- Buyers purchasing between $800,000 and $1,000,000 will still save money but must budget for a partial duty payment.
Quick Comparison — Current Thresholds
Property Type | Full Duty Exemption | Concessional Range |
New or existing home | Up to $800,000 | $800,001 – $1,000,000 (contracts from 1 July 2025) |
Vacant land | Up to $350,000 | $350,001 – $450,000 |
Victoria First Home Buyer Stamp Duty Concessions
Victoria offers significant stamp duty relief for first home buyers, making homeownership more accessible. Here’s what you need to know:
Full Stamp Duty Exemption
- Property Value: Up to $600,000
- Eligibility: First home buyers purchasing a new or existing home or vacant land intended for building their first home.
- Conditions: Must live in the property as your principal place of residence for at least 12 months, starting within 12 months of settlement.
Stamp Duty Concession
- Property Value: Between $600,001 and $750,000
- Benefit: A reduced amount of duty, calculated on a sliding scale.
- Eligibility: First home buyers meeting the same residency and citizenship requirements.
Off-the-Plan Concession
- Eligibility: Available to all buyers, including investors, companies, and trusts.
- Benefit: Allows a 100% deduction of outstanding construction and refurbishment costs when determining stamp duty owed.
- Duration: Extended until 21 October 2026.
- Note: No property value cap applies.
Australian Capital Territory First Home Buyer Stamp Duty Concessions
The ACT offers generous stamp duty relief to help first home buyers enter the property market. These concessions can save thousands.
Full Stamp Duty Exemption
- Property Value: Up to $1,020,000. First home buyers purchasing a new or existing home or vacant land may qualify.
- Eligibility: First-time buyers who have never owned property before. Buyers must meet first-home buyer criteria to access the full exemption.
- Residency Requirement: Must live in the property as your principal residence for at least 12 months within the first year.
- Income and Dependents: Household income and dependent children may affect eligibility.
Stamp Duty Concession
- Property Value: Between $1,020,001 and $1,455,000. Buyers in this range pay a reduced, sliding-scale duty instead of full stamp duty.
- Eligibility: Must meet first-home buyer and residency rules.
- Sliding Scale: Savings decrease as property value approaches $1,455,000.
Northern Territory Stamp Duty Discounts
The Northern Territory offers stamp duty relief to assist first home buyers. Understanding these concessions can help you save significantly.
First Home Owner Discount (FHOD)
- Property Value: Up to $650,000. First home buyers purchasing a new or off-the-plan home may qualify.
- Benefit: A sliding scale concession reduces stamp duty costs. The discount decreases as the property value approaches $650,000.
- Eligibility: Both you and your partner must be first-time buyers. Neither of you should have previously owned residential property in Australia.
- Age Requirement: Applicants must be at least 18 years old. This ensures legal capacity to enter into a property contract.
- Residency Requirement: At least one buyer must occupy the property as their principal place of residence for at least six months within 12 months of settlement. This confirms the property is genuinely your main residence.
- Australian Citizenship or Permanent Residency: At least one buyer must be an Australian citizen or permanent resident. This aligns with national eligibility criteria for first home owner benefits.
House and Land Package Exemption
- Eligibility Period: Contracts signed between 1 July 2022 and 30 June 2027. This timeframe allows for planning and purchasing flexibility.
- Property Type: Applies to house and land packages purchased from a building contractor. The package must include both land and a new home.
- Exemption Details: Eligible buyers may receive a full stamp duty exemption. This significantly reduces upfront costs for new home buyers.
- No Property Value Cap: There is no maximum property value limit for this exemption. This broadens accessibility for various property types and budgets.
Western Australia First Home Buyer Stamp Duty Concessions
Full Stamp Duty Exemption
- Property Value: Up to $500,000. First home buyers purchasing a new or existing home, or vacant land intended for building their first home, may qualify.
- Eligibility: First-time buyers who have never owned property before. This ensures the concession supports genuine first-time buyers.
- Residency Requirement: Must live in the property as your principal residence for at least 12 months within the first year of settlement. This confirms the property is genuinely your main residence.
- Income and Dependents: Eligibility depends on household income and number of dependent children. These factors ensure the concession supports those in genuine need.
Stamp Duty Concession
- Property Value: Between $500,001 and $700,000 in the Perth and Peel regions, and up to $750,000 in regional WA. If your home falls in this range, you pay a reduced, sliding-scale duty instead of the full amount.
- Eligibility: Must meet the same first-home buyer and residency rules. This ensures the concession supports genuine first-time buyers.
- Sliding Scale: Savings decrease as the property value approaches the upper limit. Every dollar below the cap still reduces your stamp duty bill.
South Australia First Home Buyer Stamp Duty
Full Stamp Duty Exemption
- Eligibility: Available to all first home buyers purchasing or building a new home. This includes houses, apartments, or vacant land intended for building your principal place of residence.
- Property Value Cap: No cap applies for contracts entered into on or after 6 June 2024. This allows flexibility in choosing your property within your budget.
- Residency Requirement: Must reside in the property as your principal place of residence for at least six months within 12 months of settlement. This ensures the property is genuinely your main residence.
- Foreign Ownership Surcharge: Stamp duty relief does not extend to the foreign ownership surcharge. Foreign purchasers will still be subject to this additional charge.
Tasmania First Home Buyer Stamp Duty Concessions
Full Stamp Duty Exemption
- Eligibility: Available to all first home buyers purchasing an established home. This includes houses, apartments, or vacant land intended for building your principal place of residence.
- Property Value Cap: Up to $750,000. This allows flexibility in choosing your property within your budget.
- Settlement Period: Applies to properties settling between 18 February 2024 and 30 June 2026. This timeframe provides ample opportunity for eligible purchases.
- Residency Requirement: Must reside in the property as your principal place of residence for at least six months within 12 months of settlement. This ensures the property is genuinely your main residence.
- Foreign Ownership Surcharge: Stamp duty relief does not extend to the foreign ownership surcharge. Foreign purchasers will still be subject to this additional charge.
50% Stamp Duty Concession
- Eligibility: First home buyers purchasing an established home. This includes houses, apartments, or vacant land intended for building your principal place of residence.
- Property Value Cap: Up to $600,000. This allows flexibility in choosing your property within your budget.
- Settlement Period: Applies to properties settling between 1 January 2022 and 17 February 2024. This timeframe provides ample opportunity for eligible purchases.
- Residency Requirement: Must reside in the property as your principal place of residence for at least six months within 12 months of settlement. This ensures the property is genuinely your main residence.
- Foreign Ownership Surcharge: Stamp duty relief does not extend to the foreign ownership surcharge. Foreign purchasers will still be subject to this additional charge.
How To Apply For Stamp Duty Concessions
The process for applying for first home buyer stamp duty concessions varies slightly by state, but the general steps are similar. Following these steps can make your application smoother.
Step 1: Check Your Eligibility
- Verify that you meet first home buyer requirements in your state or territory.
- Confirm property type, value, residency, and citizenship rules.
- Some states have income or dependent limits that may apply.
Step 2: Gather Required Documentation
- Collect personal identification (passport, driver’s license, or birth certificate).
- Provide proof of citizenship or permanent residency.
- Include property details: contract of sale, land title, and settlement information.
- Some states may require additional documents like household income verification.
Step 3: Complete the Application
- Apply through your state’s Revenue Office, either online or via a paper form.
- Many conveyancers or mortgage brokers can assist with the application.
- Fill in all details accurately to prevent delays.
Step 4: Submit the Application
- Submit the completed application along with all supporting documents.
- Double-check submission deadlines, as some states require applications before settlement.
Step 5: Await Assessment
- The state Revenue Office will review your application.
- You will be notified if your concession or exemption is approved.
- Approval usually happens before settlement so the duty adjustment is applied to your transaction.
Step 6: Finalise Settlement
- Once approved, your stamp duty payment (or exemption) is applied at settlement.
- Your conveyancer or lender will handle the payment adjustment as part of the process.
Key Tips
- State Variations: Rules, caps, and timelines differ per state, so always check your local Revenue Office.
- Professional Assistance: Using a conveyancer or mortgage broker ensures your application is correct and complete.
- Plan Ahead: Start early so approvals are ready before settlement.
Real-Life Stamp Duty Savings Scenarios
Case Study 1: Single First Home Buyer in NSW ($700,000 Unit)
Meet Sarah, a 29-year-old nurse in Sydney. She’s ready to buy her first apartment, priced at $700,000.
- Without concessions: Stamp duty on a $700,000 unit in NSW would normally be $26,490.
- With First Home Buyer Assistance (Concessions): Sarah qualifies for partial stamp duty relief. Her savings are $14,490, meaning she only pays $12,000.
Sarah applied online through Revenue NSW, providing proof of her first-home buyer status. Within days, her exemption was approved. This allowed Sarah to redirect thousands toward her home deposit and moving costs, reducing upfront financial stress.
Case Study 2: Couple Buying Vacant Land in QLD ($400,000 Block)
John and Priya, a married couple in Brisbane, wanted to build their dream home. They found a vacant block for $400,000.
- Without concessions: Stamp duty would have been $13,350.
- With the Queensland First Home Buyer Duty Concession: The couple qualified for full exemption because the block value is under $500,000. Their total duty payable: $0.
They submitted their application through the Queensland Government website with their purchase contract and identification. Approval came before settlement. This scenario shows that choosing the right property type and price can maximize savings, especially for couples buying land to build.
Case Study 3: Buyer With Existing Tenant — How Much Can Be Claimed?
Alex, an investor-turned-first-home buyer in Victoria, bought a property that already had a tenant in place. He wanted to live in the property after the lease ended, qualifying for the first home buyer concession.
- Without concessions: Stamp duty on his $600,000 home would normally be $31,070.
- With concessions: Because the property was eventually to be used as his principal place of residence, Alex qualified for partial exemption, saving $20,570. He paid $10,500.
Alex coordinated with his conveyancer to show planned occupancy and timing of tenant departure. The Revenue Office approved the concession before settlement. This scenario highlights how planning your move-in strategy can significantly reduce stamp duty, even when buying a rented property.
Key Takeaways
- Price Matters: Properties under state caps often qualify for full exemptions.
- Timing & Occupancy: First home concessions sometimes require residency commitments.
- Application Preparation: Early, accurate applications ensure savings are applied at settlement.
These real-life examples show how first home buyers and couples can save thousands with careful planning.
Official Stamp Duty Resources by State and Territory
To apply for stamp duty concessions or check eligibility, always refer to the official state revenue websites. Here’s a handy table with links for each state and territory:
State / Territory | Official Revenue Website | Notes |
New South Wales (NSW) | Covers full or partial stamp duty exemptions and concessions. | |
Victoria (VIC) | Includes exemptions, concessions, and off-the-plan options. | |
Queensland (QLD) | Provides full and concessional duty for homes and land. | |
Western Australia (WA) | Includes full exemption and concessional rates. | |
South Australia (SA) | Offers exemptions and concessional rates for new and established homes. | |
Tasmania (TAS) | Covers full or partial duty relief on established homes. | |
Australian Capital Territory (ACT) | Includes exemptions and concessions for new and existing homes. | |
Northern Territory (NT) | Provides full or partial duty relief on homes and land. |
Tips for Using These Resources
- Always Use Official Websites: Only apply through the official state revenue portal or with a licensed conveyancer.
- Check for Updates: Rules, caps, and eligibility can change frequently.
- Download Forms Early: Some states allow pre-approval or submission before settlement, which can save time.
BONUS: Can Stamp Duty Fees Be Added To My Loan?
Now it’s time to figure out how to pay for stamp duty.
Specifically, we will discuss if stamp duty can be added to your loan and how it needs to be paid.
Can I borrow money from my loan to pay for stamp duty.
Technically, no.
The correct way to pay for stamp duty is to use the money from your deposit.
When you take the money out of your deposit, this will then reduce your overall deposit. So you’ll need to borrow more from your lender to fill in this difference. This is why a deposit of at least 10% is recommended when buying a property.
Speak to our team of expert mortgage brokers about your budget, costs and fees around purchasing a property to see what is in line with what you can afford.
When will my stamp duty rebate come through?
In Queensland, the rebate will be calculated before settlement. The costs of buying will be reviewed, including rates and stamp duty, and the rebate will be determined.
It is up to your solicitor to notify you should you need to pay stamp duty and the exact amount before settlement.
You will then be required to give the funds to them or have the money ready in your bank.
What If The Property Is Already Rented By A Tenant?
Now we will show you how to get the most out of your purchase, even with current tenants on the property. We’ll also figure out when the stamp duty rebate will come through.
Am I eligible for the rebate if the property is already rented?
In many cases, people sell homes and allow the tenants to continue renting the property. They might be on a lease, meaning you can’t kick them out because you want to move in.
If you’re buying a home with tenants already on the lease, you can work around it by allowing the current tenants to stay in the property for up to 6 months after settlement or until the lease end date—whichever occurs first.
After this, you are required to move in, and you must stay in the property for 12 months consecutively to claim the rebate. However, this differs from state to state.
It’s best to check with your solicitor or conveyancer to make sure this is possible in your situation.
How can having tenants work in your favour?
If you have a current tenant in the property and are in no rush to move in, you might be allowed to let them stay there.
If the landlord is currently living in the home and is selling due to financial stress, you can use it as a helpful negotiation strategy. Allowing them to move out a little later will take the pressure off the move for them, and you will get rent money for another 5 months!
Quick reminder: The specific rules about this vary from state to state, so check with your local office of state revenue or conveyancer before going down this path.
Frequently Asked Questions About Stamp Duty For First Home Buyers
Do first home buyers still pay stamp duty in 2026?
Yes — unless you qualify for a state-based exemption or concession. Each state has different price thresholds, so eligibility depends on where you’re buying.
Can I get both the First Home Owners Grant and a stamp duty exemption?
In most states, yes. These are separate incentives and can be used together to significantly reduce your upfront costs.
What happens if I move out before living in the property for 12 months?
You may be required to repay the concession or rebate. Always check your state’s minimum occupancy period before renting it out.
Can I still get the concession if I buy with a partner who already owns property?
Usually no — eligibility is assessed for all applicants on the property title. If one person has owned property before, both may be disqualified.
Can I avoid stamp duty by buying land first and building later?
Some states offer separate concessions for vacant land purchases. You must meet build-time requirements to keep the benefit.
Are off-the-plan purchases treated differently?
Yes. Some states calculate stamp duty based on land-only value before construction, which can be cheaper.
Is it better to pay stamp duty upfront or add it to the mortgage?
Officially, lenders cannot fund stamp duty directly. However, you can borrow extra by reducing your cash deposit. A broker can model both options for you.
Can foreign citizens or temporary visa holders claim stamp duty concessions?
Most states exclude non-permanent residents. Some may also charge a foreign buyer surcharge. Always check your state rules before signing.
Next Steps And Getting Your Home Loan
Are you ready to buy a home?
Our team at Hunter Galloway is here to help you buy a home in Brisbane. Unlike other mortgage brokers who are just one person operations, we have an entire team of experts dedicated to help make your home loan journey as simple as possible.
If you want to get started, please give us a call on 1300 088 065 or book a free assessment online to see how we can help.
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