First Home Buyer Stamp Duty Exemption: How It Works
The first home buyer stamp duty exemption can save eligible Victorian buyers tens of thousands of dollars — but the eligibility rules and price thresholds catch many people out. Here's exactly who qualifies, how much you save, and how the concession works as prices climb above the exemption threshold.
Important: This article is general information only. Stamp duty exemption and concession thresholds are set by the Victorian Government and are subject to change. Please confirm your eligibility with the State Revenue Office or a mortgage broker before relying on this estimate.
What Is the First Home Buyer Stamp Duty Exemption?
In Victoria, eligible first home buyers pay no stamp duty at all on properties valued up to $600,000. This is a full exemption — not a discount or rebate, but a complete waiver of what would otherwise be a substantial upfront cost.
Key takeaway: On a $600,000 property, a first home buyer pays $0 in stamp duty, while an investor or non-first-home-buyer pays $31,070 on the exact same purchase.
Who Qualifies for the Exemption?
To qualify for the first home buyer stamp duty exemption, you generally need to meet all of the following:
- You (and your spouse/partner, if applicable) have never owned residential property in Australia before
- You are an individual, not purchasing through a company or trust
- At least one applicant is an Australian citizen or permanent resident
- The property will be your principal place of residence, occupied within 12 months of settlement for at least 12 continuous months
- The property is valued at $600,000 or less for the full exemption
Important: Unlike the First Home Owners Grant, the stamp duty exemption applies to both new and established homes — you don't need to buy a newly built property to qualify.
What Happens Between $600,000 and $750,000?
The exemption doesn't disappear suddenly at $600,001 — instead, a sliding concession applies up to $750,000, gradually reducing the discount as the price increases.
| Property Price | Standard Duty | First Home Buyer Pays |
|---|---|---|
| $600,000 | $31,070 | $0 |
| $650,000 | $34,070 | $11,357 |
| $700,000 | $37,070 | $24,713 |
| $750,000 | $40,070 | $40,070 (no concession) |
Figures rounded to the nearest dollar. Source: State Revenue Office Victoria.
How the Concession Is Calculated
Concession = Standard Duty × [(Price − $600,000) ÷ $150,000]
Example at $700,000: $37,070 × [($700,000 − $600,000) ÷ $150,000] = $37,070 × 0.667 = $24,713
Above $750,000: No Exemption or Concession
Once a property exceeds $750,000, the first home buyer stamp duty exemption and concession no longer apply — you pay standard duty at the same rate as any other buyer. This threshold matters a lot in Melbourne, where many properties sit right around this price point.
🧮 Check Your Exact Exemption
Use our free calculator to see your exact stamp duty as a first home buyer, at your specific price point.
Use the Stamp Duty Calculator →Stamp Duty Exemption vs the First Home Owners Grant
These are two separate, commonly confused benefits:
| Stamp Duty Exemption | First Home Owners Grant | |
|---|---|---|
| What it is | Waiver of a tax you'd otherwise pay | A $10,000 cash payment |
| Property type | New or established | New homes only |
| Price cap | Full exemption to $600k, concession to $750k | $750,000 |
How Be Smart Finance Can Help
Missing out on the exemption due to a technicality — like buying just over the threshold — can cost tens of thousands of dollars. We can help you:
- Confirm your exact eligibility before you sign a contract
- Calculate your precise stamp duty position at different price points
- Combine the exemption with the First Home Owners Grant and First Home Guarantee where eligible
Frequently Asked Questions
Do first home buyers pay stamp duty in Victoria?
Not on properties valued up to $600,000 (full exemption). A reduced amount applies between $600,001 and $750,000, and standard rates apply above $750,000.
Does the exemption apply to established homes?
Yes. Unlike the First Home Owners Grant, the stamp duty exemption applies to both new and established properties.
What if my property is worth exactly $750,000?
At $750,000, there is no concession — you pay the same stamp duty as a non-first-home-buyer at that price point.
Can I get the exemption on an investment property?
No. The property must be your principal place of residence, occupied within 12 months of settlement for at least 12 continuous months.
Want to Confirm Your Exemption?
Book Your Free First Home Buyer Review and we'll check exactly what you're eligible for.
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