Stamp duty exemptions for first home buyers in every Australian state. NSW $800k threshold, QLD new-build abolition, ACT changes, and what disqualifies you.
Stamp duty is a state government tax on property purchases, and first home buyers in most states can reduce or eliminate it. In NSW, eligible first home buyers pay no stamp duty on homes up to $800,000 and a concessional rate up to $1,000,000, a saving worth more than $30,000. Queensland first home buyers pay no stamp duty on new homes at any price; Victoria exempts homes up to $600,000, and the ACT is abolishing stamp duty for all first home buyers from 1 July 2026. Eligibility rules disqualify buyers quickly, so check before you sign a contract.
A couple in Western Sydney recently discovered they did not need to pay the tens of thousands of dollars in stamp duty they had built into their budget. They were planning to buy their first home just under the exemption threshold but had no idea the concession existed until a friend mentioned us at a housewarming. One conversation later, more than $25,000 went back into their pocket.
Stamp duty is one of the highest upfront costs in any property purchase, yet it is one of the least understood. This guide breaks down how it works, what relief is available in every state and territory, and what disqualifies you in seconds.
What Is Stamp Duty and Why Does It Matter
Stamp duty, officially called transfer duty in most states, is a state and territory government tax charged when you purchase property. The amount depends on the purchase price, the state you are buying in, and whether you qualify for concessions or exemptions.
For most buyers, it is a high cost on top of the deposit and legal fees. In New South Wales, a property purchased at $700,000 attracts more than $26,000 in stamp duty at standard rates. That figure alone can take years to save, which is why first home buyer concessions exist and why understanding them before you start your search matters so much.
Stamp duty is calculated on a sliding scale, so the more expensive the property, the higher the tax. Each state sets its own rates and thresholds, and the rules in Victoria are different from Queensland or Western Australia. Knowing the rules in your target state is not optional. Map your full upfront position, stamp duty included, with our Buying and Selling Cost Estimator.
NSW First Home Buyer Stamp Duty Exemptions and Thresholds
New South Wales offers some of the most generous first home buyer stamp duty relief in the country through the First Home Buyers Assistance Scheme.
If you are buying a new or existing home valued up to $800,000, you may be eligible for a full exemption, a saving worth more than $30,000 at the top of that range. For properties between $800,000 and $1,000,000, a concessional rate applies on a sliding scale, so a purchase at $900,000 attracts roughly half the standard duty. The scheme covers both newly built and established homes, which gives NSW first buyers more flexibility than most states.
Vacant land also attracts relief, with a full exemption on land valued up to $350,000 and a concession between $350,000 and $450,000, provided you intend to build your principal place of residence on it.
To qualify in NSW, you must be an individual, not a company or trust. You must not have previously owned residential property in Australia. You must move into the property within 12 months of settlement and live there for a continuous minimum period. Every purchaser on the contract must meet the criteria, so if one co-buyer has owned property before, the full exemption is generally lost.
What Can Disqualify You From the Exemption
Several factors remove eligibility quickly and without warning.
Buying as a trustee or through a company is immediately disqualifying in most states. Using the property as an investment from day one voids the exemption because the schemes exist for owner-occupiers. If any person named on the contract has previously owned residential property in Australia, the exemption is typically lost, and in some states this includes property received by gift or inheritance.
Overseas property ownership can also affect eligibility depending on the state, with some states only counting Australian ownership and others taking a broader view. The rules are nuanced and getting them wrong is expensive, because the revenue office can claw back the concession with penalties and interest. Get your eligibility confirmed before you exchange, not after. Our first home buyers page is the place to start.
How Stamp Duty Works in Other States and Territories
Every state and territory runs its own scheme, and several have changed their rules recently, so figures from even two years ago can mislead you.
Victoria exempts first home buyers from stamp duty on properties valued up to $600,000, with a concession available up to $750,000.
Queensland has gone further than any state for new builds. Eligible first home buyers purchasing or building a new home pay no stamp duty at all, with no price cap, for contracts from 1 May 2025. For established homes, a full exemption applies up to $700,000 with a concession phasing out at $800,000.
South Australia has removed stamp duty for eligible first home buyers purchasing new homes, with no price cap, though established homes do not attract first home buyer relief.
Western Australia runs its own threshold structure with different treatment for new and established homes, and its thresholds have moved in recent budgets, so check the current figures before setting your price range.
Tasmania currently gives first home buyers a full exemption on established homes valued up to $750,000, but this measure is legislated to end on 30 June 2026, so timing matters enormously for Tasmanian buyers reading this now.
The Australian Capital Territory is making history. From 1 July 2026, stamp duty is abolished for all first home buyers in the ACT, regardless of property price or income, replacing the previous income-tested exemption.
The Northern Territory takes a different approach, offering a $50,000 grant for first home buyers building or buying a brand new home, plus duty relief on eligible new house and land packages, rather than a general concession on established homes.
Checking the specific rules for your target state with a broker or conveyancer before you commit to a price range is a practical first step, because these schemes change at nearly every state budget.
The First Home Owner Grant and How It Sits Alongside Stamp Duty
The First Home Owner Grant is a separate payment from stamp duty concessions and should not be confused with them. The grant is a one-off cash payment available in most states to eligible first home buyers purchasing or building a new home. In NSW, the grant is $10,000 for new homes under set value caps.
You can often access both the grant and a stamp duty concession at the same time if you meet the criteria for each, and many buyers also stack the First Home Guarantee on top, buying with a 5 per cent deposit and no LMI. Combining all three can cut the upfront cost of a first home by $50,000 or more. Our LMI guide explains the deposit side of that equation.
The grant is administered through your lender in most cases and applied at settlement. Eligibility largely mirrors the stamp duty rules, including the obligation to live in the property for a minimum period. Both schemes change, so confirm current rules when you apply.
Practical Steps to Claim Your Stamp Duty Concession
- Confirm you meet the eligibility criteria for your state before making offers on property.
- Check the current purchase price thresholds, because these update at state budgets and old figures mislead.
- Speak with a licensed mortgage broker early to understand how stamp duty affects your borrowing capacity and upfront cost planning. Our guide on how much you can borrow is the companion piece.
- Instruct a conveyancer or solicitor before exchange so they can flag contract terms that might affect eligibility.
- Ensure every person named on the contract meets the requirements, particularly around prior property ownership.
- Submit your application through your state revenue office or via your conveyancer at settlement.
- Keep records of your residency in the property for the required period in case of a compliance audit.
Before your first broker meeting, arm yourself with our 20 questions to ask your mortgage broker and get pre-approval sorted so you can act the moment you find the right home.
How Laxmi Home Loans Can Help
Navigating stamp duty concessions, deposit requirements and the full cost of buying your first home can feel overwhelming. Principal Broker Kishor Acharya and the team at Laxmi Home Loans have helped more than 1,000 families across Australia understand their options and structure their finances correctly from the start.
With access to over 50 banks and lenders, and consultations available in English, Nepali and Hindi, Laxmi Home Loans works with first home buyers from all backgrounds through a fully digital process, from their Merrylands base to every corner of Australia. Laxmi Home Loans is an MFAA Full Member, recognised in the RateMyAgent National Top 20 in 2025 and 2026, ranking 18th nationally, and Kishor was named The Adviser BBA Mentor of the Year NSW/ACT 2023.
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Frequently Asked Questions
To explore which government schemes you may qualify for, book a free appointment with Laxmi Home Loans, call 0433 589 626, or contact 1300 4 LAXMI. Mortgage broker before making a decision. Laxmi Home Loans (Mero Chino Groups Pty Ltd T/As Laxmi Home Loans ABN: 76 169 013 012) Credit Representative No. 476974 authorised under ACL No. 383640.
