In short: Eligible first home buyers in Victoria pay no stamp duty (land transfer duty) on homes valued up to $600,000, and a sliding-scale concession on homes between $600,001 and $750,000. Above $750,000 full duty applies. The exemption saves $31,070 on a $600,000 purchase. You must live in the home as your principal residence for 12 continuous months, starting within 12 months of settlement.
Stamp duty is the largest upfront cost after the deposit, and for first home buyers it can be the difference between a $30,000 bill and nothing at all. This guide gives you the duty payable at every common price point, the exact eligibility rules, how the concession is calculated between $600,001 and $750,000, and how the numbers play out on real Melbourne-north purchases.
What stamp duty is
Land transfer duty, commonly called stamp duty, is a Victorian state tax paid when property changes hands. It is calculated on the dutiable value, which is the greater of the price paid and the market value. The buyer pays it, and it is due at settlement, handled by your conveyancer as part of the settlement adjustments.
For most buyers the rate that matters is 6% of the amount over $130,000 plus $2,870, which applies to properties between $130,001 and $960,000. On a $650,000 home that produces $34,070. The first home buyer exemption and concession sit on top of the general rates, wiping out or reducing that figure for eligible buyers.
Duty payable at common price points
| Price | General duty | Owner-occupier (PPR) concession | First home buyer |
|---|---|---|---|
| $450,000 | $22,070 | $18,870 | Nil |
| $500,000 | $25,070 | $21,970 | Nil |
| $550,000 | $28,070 | $24,970 | Nil |
| $600,000 | $31,070 | n/a | Nil |
| $650,000 | $34,070 | n/a | approximately $11,357 |
| $700,000 | $37,070 | n/a | approximately $24,713 |
| $725,000 | $38,570 | n/a | approximately $33,392 |
| $750,000 | $40,070 | n/a | $40,070 (full duty) |
| $800,000 | $43,070 | n/a | $43,070 (full duty) |
| $950,000 | $52,070 | n/a | $52,070 (full duty) |
The PPR concession applies to owner-occupiers buying between $130,001 and $550,000 who are not first home buyers, for example someone buying their second home. First home buyers get the better deal, which is the exemption.
Figures in the first home buyer column between $600,001 and $750,000 are approximate; the exact amount is set by the SRO calculator and reproduced in our stamp duty calculator.
How the sliding concession works
Between $600,001 and $750,000, the concession phases out in a straight line. The duty you pay is the full general duty multiplied by the proportion of the way from $600,000 to $750,000 that your price sits.
For a $650,000 Craigieburn home:
- Full duty: $34,070
- Position in the band: ($650,000 − $600,000) ÷ $150,000 = one third
- Duty payable: $34,070 × one third ≈ $11,357
- Saving compared with a non-first-home buyer: about $22,713
For a $700,000 home the position is two thirds, so duty is $37,070 × two thirds ≈ $24,713, a saving of about $12,357. At $750,000 you are at the end of the band and pay full duty.
The practical lesson: every $10,000 you negotiate off the price between $600,000 and $750,000 saves you roughly $2,500 to $2,700 in duty on top of the price reduction itself.
Eligibility for the first home buyer exemption and concession
| Requirement | Detail |
|---|---|
| First home | You (and your partner) have never owned residential property in Australia, or have owned but never lived in it |
| Prior grants | You have not previously received the exemption, concession or First Home Owner Grant |
| Residency | At least one applicant is an Australian citizen or permanent resident |
| Age | 18 or over |
| Occupancy | Live in the property as your principal place of residence for 12 continuous months, starting within 12 months of settlement |
| Value | Dutiable value $600,000 or less for exemption; $600,001 to $750,000 for concession |
| Property type | New or established home, house, unit, townhouse or apartment; vacant land if you build and occupy within the timeframe |
| Ownership share | All purchasers must be eligible if claiming on the full interest; if one is ineligible the benefit applies only to the eligible share |
Unlike the First Home Owner Grant, the duty exemption applies to established homes as well as new ones. That is why it is the single most valuable concession for buyers of existing houses in Craigieburn, Roxburgh Park and Epping.
Buying with an ineligible partner
If you buy a $600,000 home 50/50 with a partner who owned property before, the exemption applies to your half only. You would pay duty on the partner's half, roughly $15,535. Some couples structure the purchase differently for this reason; get legal advice via the buying property with a partner page before signing.
Worked examples in Melbourne's north
$580,000 established house, Roxburgh Park
- General duty: $29,870
- First home buyer duty: nil
- Saving: $29,870
That saving is roughly equal to a 5% deposit on the same property. For a couple with $45,000 in savings, the exemption alone turns a marginal purchase into a comfortable one.
$650,000 established house, Craigieburn
- General duty: $34,070
- First home buyer duty: approximately $11,357
- Saving: approximately $22,713
$700,000 townhouse, Wollert
- General duty: $37,070
- First home buyer duty: approximately $24,713
- Saving: approximately $12,357
$620,000 house-and-land package, Sunbury
Land $300,000, build contract $320,000.
- Duty is assessed on the land only, because the building contract is signed separately and the house does not exist at the time of land transfer
- First home buyer duty on $300,000 land: nil
- The $10,000 First Home Owner Grant also applies because the home is new and under $750,000
- Total state support: roughly $13,070 in duty saved on the land plus $10,000 grant
House-and-land is duty-efficient for everyone, not just first home buyers. A non-first-home-buyer would pay $13,070 on the $300,000 land instead of $32,270 on a $620,000 established home. See house and land vs established.
$780,000 established house, Greenvale
- General duty: $41,870
- First home buyer duty: $41,870, because the price exceeds $750,000
- Saving: nil
At this price the duty exemption does not help, but the First Home Guarantee still does, because the Melbourne price cap is $950,000. See the First Home Guarantee guide.
Other duty concessions to know about
| Concession | Who it helps | Key point |
|---|---|---|
| Off-the-plan concession | Apartment and townhouse buyers, including investors | Temporary expanded concession ends 20 October 2026; construction costs incurred after contract are deducted from dutiable value |
| Principal place of residence concession | Owner-occupiers, $130,001 to $550,000 | Lower rate than general duty; cannot combine with first home buyer exemption |
| Pensioner concession | Eligible concession card holders | Exemption to $330,000, concession to $750,000; once only |
| Young farmer exemption | First-time farmland buyers under 35 | Exemption to $600,000 |
First home buyers purchasing off the plan in the $600,001 to $750,000 band can sometimes combine the off-the-plan concession with the first home buyer concession, reducing the dutiable value first and then applying the sliding scale. Details are in buying off the plan and the stamp duty exemptions and concessions legal page.
Foreign purchaser additional duty
If any buyer is a foreign purchaser, an additional 8% duty applies on their share, on top of the standard duty. Permanent residents and New Zealand citizens on special category visas are not foreign purchasers for this purpose, but many temporary visa holders are. A temporary resident buying a $600,000 home would face $48,000 in additional duty even if their citizen partner qualifies for the first home buyer exemption on their own share. Read foreign purchaser additional duty before you sign.
How and when you pay
- Your conveyancer or solicitor lodges the duty assessment with the SRO through Duties Online before settlement.
- The exemption or concession is claimed in the same lodgement using a first home buyer declaration signed by every purchaser.
- Duty (if any) is paid at settlement out of your funds, alongside the deposit balance and adjustments.
- If you fail the 12-month residence requirement, you must notify the SRO within 30 days and pay the duty that would otherwise have applied, plus possible penalty tax and interest.
The SRO can reassess for up to five years, so keep evidence of occupancy: utility bills, electoral roll, drivers licence address.
Common mistakes
Budgeting for full duty when you are exempt. Some buyers over-save and delay purchasing by a year. Run the stamp duty calculator with the first home buyer box ticked.
Budgeting for nil duty when you are just over $600,000. A $610,000 purchase attracts approximately $2,138 in duty, not nil. A $700,000 purchase attracts around $24,713. Check the price before you bid.
Forgetting a partner's prior ownership. If your partner has owned and lived in a property, the exemption applies to your share only.
Confusing the grant and the exemption. The $10,000 grant is for new homes only. The duty exemption applies to established homes too. They are separate applications with separate rules.
Renting the property out during the first 12 months. Moving out early or renting to tenants voids the exemption and triggers reassessment.
Buying in a company or trust. The exemption is for natural persons buying to occupy.
Assuming an auction price is negotiable afterwards. Once the hammer falls at $755,000 you have lost the entire concession. Set your auction limit with the $750,000 cliff in mind; see buying at auction in Victoria.
Frequently asked questions
Do first home buyers pay stamp duty in Victoria?
Not on homes valued up to $600,000, provided they meet the eligibility rules and live in the home for 12 continuous months. Between $600,001 and $750,000 a sliding concession applies, so duty is reduced but not eliminated. Above $750,000 first home buyers pay full duty. The exemption applies to both new and established homes.
How much stamp duty do I pay on a $650,000 house in Victoria as a first home buyer?
Approximately $11,357. Full duty on $650,000 is $34,070, and the first home buyer concession reduces it in proportion to where the price sits in the $600,001 to $750,000 band, which at $650,000 is one third. A non-first-home buyer would pay the full $34,070. Confirm the exact figure with the SRO calculator before settlement.
Does the stamp duty exemption apply to established homes?
Yes. Unlike the $10,000 First Home Owner Grant, which is new homes only, the first home buyer duty exemption and concession apply to established houses, units and townhouses as well as new builds and vacant land. This makes it the most useful concession for buyers of existing homes in suburbs like Craigieburn and Epping.
Can I get the stamp duty exemption and the First Home Owner Grant together?
Yes, if the property is a new home valued at $600,000 or less. On a $580,000 house-and-land package in Mickleham you would pay no duty on the land and receive the $10,000 grant. Between $600,001 and $750,000 you get the grant plus the sliding duty concession. Over $750,000 you get neither.
What happens if I move out before 12 months?
You must notify the SRO within 30 days and pay the duty you were exempted from. Penalty tax and interest can be added if you do not disclose. The SRO can grant exemptions from the residence requirement for genuine hardship such as a job transfer, serious illness or relationship breakdown, but you should apply before moving out.
Is stamp duty paid on the land or the house in a house-and-land package?
On the land only, provided the building contract is separate from the land contract and construction has not started at the time of the land transfer. For an eligible first home buyer this usually means nil duty because most northern-corridor blocks are well under $600,000. If you buy a completed spec home in a single contract, duty applies to the full price.
Talk to GNT Finance
Gorakh Timilsina works with first home buyers across Melbourne's north every week and will show you exactly what duty applies at the prices you are looking at, how to stay inside the $600,000 and $750,000 thresholds, and how to combine the exemption with the grant and the First Home Guarantee. There is no cost to you for our home-loan service in most cases.
Book a free consultation or call 0426 403 703.
This page is general information only and not legal, tax or financial advice. Laws change — confirm current rules with the State Revenue Office, the ATO or a licensed professional.
Written by Gorakh Timilsina
Founder, CEO & Senior Mortgage Consultant at GNT Finance. Gorakh started as a broker assistant, spent years as a senior credit officer assessing loan applications, and now helps Melbourne families get the right loan approved. English, Nepali and Hindi spoken.