Stamp duty (transfer duty) is a state tax on property purchases and can cost first home buyers tens of thousands upfront.
Exemptions and concessions are available in most states for first home buyers, with thresholds ranging from $430,000 (WA) to $800,000 (NSW).
NSW, VIC, QLD, and WA offer the most generous savings, while SA, TAS, ACT, and NT provide partial relief or discounts.
Savings can exceed $30,000+, helping buyers enter the market sooner by lowering upfront costs.
To qualify, you must usually be an Australian citizen or permanent resident, buy within state-set price caps, and live in the property as your main residence.
Combine exemptions with other schemes (e.g., First Home Owner Grant, First Home Guarantee) to maximise benefits.

Buying your first home is a milestone that comes with both excitement and financial responsibility. For many first home buyers in Australia, one of the biggest hurdles is covering upfront costs like stamp duty—a government tax applied when you purchase property. Fortunately, several state and territory governments offer exemptions or concessions on stamp duty to ease the financial burden for eligible first home buyers.

In this comprehensive guide, we’ll break down what stamp duty is, how exemptions work, eligibility rules in each state, tips to maximise savings, and common mistakes to avoid. Whether you’re house-hunting in Sydney, Melbourne, Brisbane, Perth, or anywhere else across Australia, understanding stamp duty exemptions could save you tens of thousands of dollars.

For a broader overview of the buying process beyond stamp duty—including financing, house-hunting, and ownership tips—you can also check our detailed First Home Buyer Guide.

Understanding Stamp Duty (Transfer Duty) for First Home Buyers

Stamp duty—officially called transfer duty in some states and territories—is a one-off state government tax applied when you purchase property in Australia. For many first home buyers, this can be one of the largest upfront costs after your deposit, and often determines whether you can afford to buy sooner or have to wait and save longer.

Unlike your mortgage deposit (which goes toward the purchase), stamp duty doesn’t build equity in your home. Instead, it goes directly to your state or territory revenue office. This is why stamp duty exemptions and concessions for first home buyers are so important—they can literally save you tens of thousands of dollars and speed up your path to homeownership.

What Is Stamp Duty and How Is It Calculated?

The amount of stamp duty you pay depends on several key factors:

Purchase Price of the Property
Stamp duty is charged on a sliding scale. The higher the property value, the more you pay. Each state and territory sets its own rates, with thresholds that affect how much duty applies.
Location (State or Territory)
Australia doesn’t have one national stamp duty system. Each state and territory has its own legislation, exemptions, and concessions. For example, the rules in NSW are very different from those in Queensland or Victoria.
First Home Buyer Status
Many states offer first home buyer stamp duty exemptions or concessions. If you’re a first home buyer, you may be eligible for reduced rates—or even zero duty—depending on the property’s value and type.
Property Type
The duty payable can vary depending on whether the property is:

A new home (often favoured with bigger concessions)
An established home
Vacant land for building
An investment property (generally no concessions for investors)

Why Stamp Duty Matters for First Home Buyers

Stamp duty is not just a small fee—it’s a significant cost that can change your buying power. For many first home buyers, this cost can equal years of extra saving time.

Here’s how it stacks up in real-world terms:

Example 1: New South Wales (NSW)
On a $700,000 property in Sydney, stamp duty would normally be around $27,000 without exemptions. That’s in addition to your deposit and other upfront costs like legal fees and inspections.
Example 2: Victoria
Buying a $650,000 home in Melbourne could attract over $34,000 in stamp duty—enough to cover a full kitchen renovation or several years of mortgage repayments.
Example 3: Queensland
A first home buyer purchasing a $500,000 property in Brisbane would face about $8,750 in stamp duty without concessions. But with exemptions, this may be reduced to $0.

For many Australians, these figures are staggering. This is why state governments introduced first home buyer incentives, including full or partial stamp duty exemptions.

How Exemptions and Concessions Help First Home Buyers

Government housing assistance programs—like the First Home Owner Grant (FHOG), First Home Buyer Stamp Duty Exemption, and First Home Guarantee (FHBG)—are designed to tackle housing affordability. Stamp duty concessions are one of the most effective tools because they reduce the upfront entry cost to the market.

Here’s why exemptions are a game-changer:

Lower Upfront Savings Needed
Without exemptions, buyers need to save not just for their deposit, but also for the duty. With exemptions, your deposit can stretch further.
Boost Borrowing Power
Lenders consider your upfront costs. If you don’t need to pay tens of thousands in stamp duty, your savings and loan capacity work harder.
Faster Path to Homeownership
Instead of waiting years to save both a deposit and duty, buyers can enter the market sooner.
Support for Specific Groups
Some schemes target not just first home buyers but also single parents (e.g., Family Home Guarantee) or those buying in regional areas.

How Much Can You Save?

The savings depend on your location and the property price.

NSW: First home buyers can pay no stamp duty on homes up to $800,000, saving up to $31,000+.
VIC: No duty on properties up to $600,000, and concessions for homes up to $750,000. Savings can exceed $30,000.
QLD: Exemptions on homes up to $500,000, with concessions tapering off for higher prices.
WA, SA, TAS, ACT, NT: Each jurisdiction has its own eligibility and thresholds.

These aren’t small numbers—these savings can be the difference between buying now and waiting years.

The Real Cost of Not Knowing

Many first home buyers aren’t fully aware of stamp duty exemption eligibility. Missing out can cost you:

Tens of thousands in unnecessary tax.
A delayed entry into the property market.
Reduced borrowing power and higher financial strain.

This is why it’s crucial to understand the specific rules in your state.

How Does the First Home Buyer Stamp Duty Exemption Work?

Each state and territory sets its own rules, but generally:

Full exemption: You pay no stamp duty if your property falls under a certain price cap.
Concession: You pay a reduced rate of stamp duty if your property is slightly above the exemption threshold.
Eligibility restrictions: Usually, you must live in the home as your principal place of residence for at least 6–12 months.

Key benefits include:

Saving $10,000 to $40,000+ upfront depending on the state.
Allowing buyers to redirect funds to deposits, renovations, or loan repayments.
Making home ownership more accessible despite rising property prices.

Eligibility Criteria for First Home Buyer Stamp Duty Exemption

While details vary across states, most programs share these common eligibility rules:

Must be an Australian citizen or permanent resident.
Must be a first home buyer. (Neither you nor your partner can have owned property before in Australia.)
Must occupy the property as your principal residence (usually within 12 months).
Property value must not exceed the exemption threshold set by the state.

Some states also differentiate between new homes, established homes, and vacant land.

State-by-State Breakdown of Stamp Duty Exemptions (2025)

Understanding stamp duty exemptions for first home buyers can feel overwhelming since rules vary across states and territories. Below, we break down every region in Australia, showing thresholds, concessions, grants, and examples to make it clear how much you could save.

For a full guide on buying your first property, check out our main resource: First Home Buyer Guide.

New South Wales (NSW) – The Most Generous Exemption in Australia

Full exemption: Applies to properties valued up to $800,000 (both new and existing homes).
Concessions: Tapered rates apply between $800,001 – $1,000,000.
Vacant land exemption: No duty payable up to $350,000, with concessions up to $450,000.
Eligibility requirement: Buyer must live in the property for at least 6 continuous months within 12 months of purchase.

Example: If you purchase a $780,000 apartment in Sydney, you pay zero stamp duty, saving roughly $30,000.

Key takeaway: NSW currently offers the highest exemption threshold in Australia, making it one of the most attractive states for first home buyers.

Victoria (VIC) – Strong Savings for Metro Buyers

Full exemption: Properties up to $600,000.
Concession: A sliding scale applies between $600,001 – $750,000, reducing the duty progressively.
Vacant land: Full exemption available up to $600,000.
Grants: Eligible first home buyers of new homes may also receive the First Home Owner Grant (FHOG) of $10,000 – $20,000, depending on location.

Example: Buying a $700,000 townhouse in Melbourne means you only pay around $12,000 in stamp duty, compared to the standard $36,000.

Key takeaway: VIC’s concessions are especially helpful for buyers in urban areas where median prices hover above $650,000.

Queensland (QLD) – Competitive Relief for Family Homes

Full exemption: Applies to homes valued up to $550,000.
Concessions: Available for properties up to $800,000.
Vacant land exemption: Applies up to $400,000.
Eligibility: You must occupy the home within 12 months of settlement.

Example: Purchasing a $600,000 house in Brisbane means you’ll pay just $3,000 in duty, instead of the standard $12,000, saving you nearly $9,000.

Key takeaway: QLD offers strong support for first home buyers looking at detached homes or suburban properties.

Western Australia (WA) – Best for Affordable Housing Market

Full exemption: Applies to homes up to $430,000.
Concession: Partial relief applies between $431,000 – $530,000.
Vacant land exemption: Available for land purchases up to $300,000.
Extra support: WA also provides the First Home Owner Grant of $10,000 for new builds.

Example: Buying a $500,000 home in Perth would mean paying reduced stamp duty of about $2,500, rather than $17,000.

Key takeaway: WA’s thresholds are lower than NSW or VIC, but the overall affordability of WA homes means first home buyers still enjoy significant savings.

South Australia (SA) – Limited Exemptions, but Still Options

No broad exemption since 2018.
Concessions: Apply to off-the-plan apartments valued up to $600,000.
Other support: First Home Owner Grant may still apply for new builds.

Example: Buying a $580,000 off-the-plan apartment in Adelaide could mean stamp duty relief of around $15,000.

Key takeaway: SA is more restrictive than other states, but buyers focusing on apartments or new builds can still benefit.

Tasmania (TAS) – Discounts Instead of Exemptions

Concession: First home buyers receive a 50% discount on stamp duty.
Threshold: Applies to established homes valued up to $600,000.
No full exemption offered, unlike NSW and VIC.

Example: Purchasing a $500,000 home in Hobart normally attracts around $18,250 in stamp duty. With the 50% discount, you only pay $9,125.

Key takeaway: TAS’s scheme is not as generous as full exemptions but still provides thousands in savings for budget-conscious buyers.

Australian Capital Territory (ACT) – Phasing Out Stamp Duty

Gradual phase-out: The ACT Government is replacing stamp duty with general property rates.
Current policy: Many lower-value properties already attract no duty.
Thresholds: Adjust annually and depend on household income.

Example: A young couple buying a $650,000 home in Canberra could qualify for zero duty, depending on their income bracket.

Key takeaway: ACT is unique in its approach, moving towards completely eliminating stamp duty in the long term.

Northern Territory (NT) – Discounts Instead of Full Exemptions

No broad exemption offered.
First Home Owner Discount (FHOD): Provides a $10,000 deduction on the stamp duty payable.
Eligibility: Applies to both new and established homes.

Example: Purchasing a $500,000 property in Darwin would normally attract about $23,000 in duty. With the $10,000 discount, you pay $13,000.

Key takeaway: NT doesn’t waive stamp duty but provides a flat-rate reduction, still easing the cost of entry.

Comparison Table – Stamp Duty Exemptions by State (2025)

State/Territory	Full Exemption Threshold	Concession Range	Vacant Land Threshold	Special Notes
NSW	$800,000	Up to $1,000,000	$350,000	Must live in property for 6 months
VIC	$600,000	$600,001 – $750,000	$600,000	Grants up to $20,000 available
QLD	$550,000	Up to $800,000	$400,000	Strong for suburban homes
WA	$430,000	$431,000 – $530,000	$300,000	Extra $10,000 FHOG
SA	None	Apartments up to $600,000	None	No broad exemptions
TAS	None	50% discount up to $600,000	None	Applies to established homes
ACT	Income-based	Annual thresholds	None	Duty being phased out
NT	None	$10,000 FHOD	None	Flat reduction

Tips to Maximise Your Stamp Duty Exemption

Buy within the threshold: Even $1 over can cost you thousands.
Consider new homes: Some states offer higher thresholds for new builds.
Apply early: Exemptions aren’t automatic; you must apply during settlement.
Check grant stacking: Combine with First Home Owner Grant (FHOG) or shared equity schemes.
Plan your budget: If you’re close to the threshold, negotiate price reductions.

Common Mistakes First Home Buyers Make

Assuming all states have the same rules.
Forgetting to apply before settlement.
Not living in the property long enough to meet residency requirements.
Miscalculating savings and overextending the budget.

First Home Buyer Stamp Duty Exemption vs. Other Grants

It’s important to know that stamp duty exemptions are different from other first home buyer incentives like:

First Home Owner Grant (FHOG): Cash payment for new homes.
First Home Guarantee: 5% deposit without LMI (through federal government).
Shared Equity Schemes: Government co-owns part of your property to reduce upfront costs.

Should You Buy Now or Wait?

Given rising property prices and tightening thresholds, many experts suggest buying as soon as you can qualify. Waiting could:

Push you above the exemption cap.
Increase your upfront costs due to inflation.
Reduce long-term affordability.

FAQs on First Home Buyer Stamp Duty Exemptions

Q1. Do all states offer full exemptions?

No. Only NSW, VIC, QLD, and WA offer full stamp duty exemptions. SA, TAS, ACT, and NT provide concessions or partial relief instead.

Q2. Can I apply for both a grant and exemption?

Yes. First home buyers can combine the First Home Owner Grant (FHOG) with stamp duty exemptions to maximise savings.

Q3. What if I move out early?

If you don’t meet the residency requirement (usually 6–12 months), you may have to repay the exemption or concession.

Q4. Do foreign buyers qualify?

Generally no. Stamp duty exemptions are only for Australian citizens and permanent residents.

Q5. Is stamp duty exemption automatic?

No. You must apply through your solicitor or conveyancer at the time of settlement.

Conclusion: Making the Most of Your First Home Buyer Benefits

Stamp duty exemptions can save you tens of thousands of dollars when buying your first home in Australia. By understanding your state’s rules, planning your purchase under the right threshold, and combining exemptions with grants like the First Home Owner Grant (FHOG), you can significantly lower your upfront costs.

For official guidance, the Australian Government’s First Home Owner Grant portal provides detailed eligibility rules and application processes. You can also explore practical advice on budgeting and planning from MoneySmart’s home buying guide, which is a trusted resource for navigating property finances.