First Home Buyer Stamp Duty Guide Victoria 2025: Everything You Need to Know

What Is Stamp Duty and Why Does It Matter for First Home Buyers?

Stamp duty — officially called land transfer duty in Victoria — is a state government tax levied every time property ownership changes hands. For most property buyers, it represents one of the largest upfront costs of purchasing a home, often tens of thousands of dollars on top of your deposit, legal fees, and inspection costs.

The good news for first home buyers in Victoria is that the state government provides generous concessions and exemptions that can save you significant amounts — potentially eliminating your stamp duty liability entirely if you buy under $600,000.

First Home Buyer Stamp Duty Exemption: The $600,000 Threshold

Victoria's first home buyer stamp duty exemption is one of the most generous in Australia. If you are an eligible first home buyer purchasing a property valued at $600,000 or less, you pay $0 in stamp duty. On a $580,000 home, that's a saving of approximately $29,870 compared to what an investor would pay.

The Sliding Scale Concession ($600,001 – $750,000)

If your property is valued between $600,001 and $750,000, you don't miss out entirely. Instead, a sliding scale concession applies. The amount you pay gradually increases as the property value rises toward $750,000, at which point the full general duty applies.

The formula is: Standard duty × (purchase price − $600,000) ÷ $150,000

For example, on a $675,000 property, the concession halves your duty. Above $750,000, you pay the same duty as any other buyer.

Who Is Eligible for the First Home Buyer Stamp Duty Exemption?

To qualify for the Victorian first home buyer duty exemption or concession, you must meet all of the following criteria:

• You are purchasing or building your first home in Victoria on or after 1 July 2017.
• Neither you nor your spouse or domestic partner can have previously owned residential property anywhere in Australia (with limited exceptions for property owned before 1 July 2000).
• At least one purchaser must be an Australian citizen, permanent resident, or New Zealand citizen holding a Special Category Visa.
• You must occupy the property as your principal place of residence within 12 months of settlement.
• You must occupy the property continuously for at least 12 months.
• The property must be used as a home, not solely for investment purposes.

Important Note: The $600,000 Threshold Hasn't Changed Since 2017

One critical point to be aware of: the first home buyer exemption thresholds of $600,000 and $750,000 have not been updated since 1 July 2017 — nearly eight years. During that time, Melbourne's median house price has risen substantially, meaning the practical benefit of this exemption has diminished for many buyers in inner and middle suburbs.

This means that if you're purchasing in Melbourne's inner suburbs, you may fall above the $750,000 threshold and receive no concession at all, despite being a genuine first home buyer.

Combining the First Home Buyer Concession with the Off-the-Plan Concession

If you are purchasing an apartment or townhouse off-the-plan, you may be able to combine the first home buyer duty exemption with the temporary off-the-plan concession, which runs for contracts signed between 21 October 2024 and 20 October 2026.

The off-the-plan concession reduces the dutiable value by excluding post-contract construction costs. This can significantly bring down your dutiable value — potentially bringing you under the $600,000 threshold even if the total purchase price is higher.

Example: If you sign a contract for a $750,000 off-the-plan apartment where $200,000 of construction is yet to be completed, your dutiable value is $550,000. As a first home buyer, you would pay $0 in stamp duty.

How to Claim the First Home Buyer Stamp Duty Exemption

You don't need to apply directly to the State Revenue Office. The exemption or concession is typically claimed through your conveyancer or solicitor via the Duties Online system when they lodge your land transfer duty transaction. Here's the general process:

1. Instruct your conveyancer that you are a first home buyer and believe you qualify for the exemption.
2. Your conveyancer will complete the statutory declaration and supporting documentation.
3. At settlement, if you qualify, reduced or zero duty is assessed and collected.
4. You must satisfy the SRO that you have met all eligibility criteria if queried.

First Home Buyer Stamp Duty vs. First Home Owner Grant (FHOG)

The stamp duty concession is separate from the First Home Owner Grant (FHOG), which is a cash grant of up to $10,000 for eligible first home buyers purchasing or building a new home. You may be eligible for both simultaneously, but the eligibility criteria differ slightly.

Key distinction: The stamp duty concession applies to both new and established homes, while the FHOG only applies to new homes or substantial renovations.

Summary: First Home Buyer Stamp Duty in Victoria at a Glance

• Full exemption: $0 duty on properties up to $600,000
• Sliding scale: Partial concession for $600,001–$750,000
• No concession: Standard rates apply above $750,000
• Must occupy as principal place of residence within 12 months
• Thresholds unchanged since July 2017 despite significant price growth
• Combinable with off-the-plan concession (until October 2026)