You’ve finally found the perfect first home. You’ve saved your deposit, sorted your mortgage, and you’re ready to sign the paperwork. Then your conveyancer drops a number on you—thousands of dollars in stamp duty.
“Wait… I have to pay that too?”
It’s a question many first-home buyers ask too late. But here’s the good news: In many cases, you might not have to pay at all. Every state and territory has exemptions and discounts, but if you don’t know the rules, you could end up paying thousands unnecessarily.
Let’s make sure that doesn’t happen to you.
What is Stamp Duty? (And Why Is It So Expensive?)
Stamp duty is a tax charged by state governments when you buy property. Think of it as the government taking a big slice of your purchase price just because you bought a home. It’s a one-time payment that can easily cost tens of thousands of dollars—money that could have gone towards your renovations, furniture, or even reducing your mortgage.
But Stamp duty rules aren’t the same everywhere. Each state and territory has different rates, discounts, and exemptions. Some first-home buyers pay nothing at all, while others only get a partial discount.
So, the real question is: Do YOU have to pay it?
Stamp Duty for First Home Buyers: Who Pays and Who Doesn’t?
The good news is that every state and territory in Australia offers some kind of relief for first-home buyers. The bad news? The rules are different in each state, and if you don’t know what you’re eligible for, you could end up paying more than you need to.
Here’s a breakdown of how much stamp duty first-home buyers pay across Australia:
Stamp Duty in Victoria (VIC)
In Victoria, stamp duty is calculated based on a sliding scale. For general buyers, rates range from 1.4% to 6.5%, depending on the property’s dutiable value (the purchase price or land value after deductions).
However, first-home buyers get a significant break:
- Full exemption for homes valued up to $600,000 (you pay $0 in stamp duty).
- Discounted rate for homes between $600,001 and $750,000.
If the property exceeds $750,000, standard stamp duty rates apply.
Example: If you buy a $650,000 home, your stamp duty will be lower than a non-first-home buyer’s—but if the price goes over $750,000, you won’t get any discount at all.
Stamp Duty in New South Wales (NSW)
New South Wales has one of the most generous stamp duty exemptions in Australia. The standard rates range from 1.25% to 7%, but first-home buyers can access:
- Full exemption for properties up to $800,000.
- Discounted rate for properties between $800,001 and $1,000,000.
Additionally, first-home buyers in NSW may qualify for:
First Home Owner Grant (New Home): A $10,000 grant for newly built homes up to $600,000, or up to $750,000 for house and land packages.
Shared Equity Home Buyer Helper: A program assisting essential workers (such as teachers, nurses, and paramedics) to buy their first home.
Stamp Duty in Queensland (QLD)
In Queensland, standard stamp duty rates range from 1.5% to 5.75%, but first-home buyers receive generous concessions:
- No stamp duty for homes valued up to $550,000.
- Discounted rate for homes between $550,001 and $750,000.
Queensland also offers a home concession that reduces stamp duty for buyers intending to live in the property. This can save up to $7,175—but first-home buyers get an even larger discount of up to $15,925.
Stamp Duty in Western Australia (WA)
Western Australia applies stamp duty at rates ranging from 1.9% to 5.15%, depending on the purchase price.
- First-home buyers pay no stamp duty for homes up to $430,000.
- Discounted rates apply for homes between $430,001 and $530,000.
If your property is valued above $530,000, standard stamp duty rates will apply.
Stamp Duty in South Australia (SA)
South Australia’s general stamp duty rates range from 1.0% to 5.5%, but the state offers strong incentives for first-home buyers purchasing new properties:
- Full exemption for new homes up to $650,000.
- Partial exemption for new homes valued between $650,001 and $700,000.
First Home Owner Grant: Eligible first-home buyers can receive a $15,000 grant when purchasing a new home.
For existing (older) homes, standard stamp duty rates apply.
Stamp Duty in Tasmania (TAS)
Tasmania’s stamp duty rates range from $50 for very low-value properties to 4.5% for homes above $725,000.
- 50% discount on stamp duty for first-home buyers of established homes (up to $600,000).
First Home Owner Grant: If you’re buying a brand-new home, you may qualify for a $30,000 grant.
Tasmania’s concessions primarily benefit those buying a newly built home or an established home under a specific price cap.
Stamp Duty in the Australian Capital Territory (ACT)
The ACT operates a unique stamp duty system based on property value and intended use. Standard rates range from 0.49% to 4.54%, but first-home buyers can access:
- Full exemption on stamp duty if they meet household income limits.
- Discounts for both new and existing homes, depending on eligibility.
Maximum concession of up to $34,504.
Because ACT benefits are income-tested, it’s important to check the latest eligibility thresholds before applying.
What Does This Mean for You?
If you’re a first-home buyer, your eligibility for stamp duty exemptions depends on:
- The state or territory you’re buying in.
- The value of your property.
- Whether the home is new or existing.
- Your income (for certain programs).
To avoid paying more than you need to, use your state’s stamp duty calculator or speak to a conveyancer before signing your contract.
Final Thoughts
Stamp duty can be a hidden cost that catches first-home buyers by surprise. But if you know the rules in your state, you might be able to avoid it altogether.
By taking advantage of first-home buyer exemptions and grants, you could save thousands of dollars—money that’s better spent on your new home.
Before you buy, ask yourself:
- Am I eligible for an exemption or discount?
- Is my property below the price threshold?
- Do I meet all residency and income conditions?
If you’re not sure, now is the perfect time to find out—before you pay more than you have to!
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