How the first home buyer duty exemption or concession is assessed
Source: State Revenue Office Victoria, verified November 2026. Thresholds and conditions change at budget time; the figures here are reviewed each February and July.
What the numbers look like
| Purchase price | Duty for an owner-occupier | Eligible first home buyer pays |
|---|---|---|
| $500,000 | $21,970 | Nil |
| $600,000 | $31,070 | Nil |
| $640,000 | $33,470 | $8,925 |
| $680,000 | $35,870 | $19,131 |
| $720,000 | $38,270 | $30,616 |
| $750,000 | $40,070 | $40,070 |
| $850,000 | $46,070 | $46,070 |
Any price: the Victoria stamp duty calculator applies the same rules and shows the standard duty beside the concession.
The grant is a separate question
The $10,000 First Home Owner Grant is a separate scheme for new homes with a contract price of $750,000 or less, including construction. It is paid in addition to the duty exemption or concession, and eligibility for one does not decide the other.
Where the concession meets the lender's assessment
Victoria's thresholds are the lowest of the eastern states against its median prices, so for many Melbourne buyers the question is not whether they qualify but whether the property can be brought under $750,000 by choosing new, off the plan or further out. The lender's test does not move with any of these: borrowing capacity is assessed on income and expenses at a buffered rate whether the duty is nil or $40,000, and the duty saving changes the cash required at settlement rather than the loan.
Two short reads go further: why scheme eligibility and serviceability are separate tests, and the borrowing capacity calculator, which works the way an assessor does rather than the way a bank's advertising does.
Questions buyers ask
Do first home buyers pay stamp duty in Victoria?
Not on a home valued at $600,000 or less, provided they meet the first home buyer duty exemption rules. From $600,001 to $750,000 duty is reduced on a sliding scale. Above $750,000 the full amount applies.
Is it different for new and established homes?
No. The same $600,000 and $750,000 thresholds apply to new homes, established homes and vacant land for a first home. The First Home Owner Grant, by contrast, is only for new homes.
What is the dutiable value for an off-the-plan purchase?
The contract price less the construction costs incurred after the contract date. For strata lots under contracts signed between 21 October 2024 and 20 April 2027 there is no value threshold on this concession, so a first home buyer's dutiable value can fall well below the exemption line.
How long do I have to live there?
Twelve continuous months, starting within 12 months of settlement. Renting the property out inside that period means the duty becomes payable and the SRO must be told.
My partner owned a home years ago; am I still eligible?
If your spouse or partner owned and lived in a home in Australia for six continuous months at any time since 1 July 2000, or owned any home before then, neither of you is eligible, even if they are not on the contract.
Can I get the principal place of residence concession as well?
The two do not stack. Up to $600,000 the first home exemption makes the duty nil anyway. Between $600,001 and $750,000 the first home concession is calculated on the general rates, because the principal place of residence rates end at $550,000.