If you’re planning to build or purchase your first home in Victoria, it’s important to understand the concessions and discounts that may be available to you. Knowing what you’re eligible for can help you better manage your budget and determine how much you’ll need to borrow.
Stamp duty (officially known as land transfer duty) is often one of the largest upfront expenses when buying property. The good news is that eligible buyers in Victoria may qualify for concessions or exemptions that can significantly reduce this cost.
First home buyers, in particular, may be entitled to a stamp duty exemption or concession if certain criteria are met. Here’s an overview of how it works, who qualifies and how to apply.
What Is Stamp Duty?
Stamp duty is a government tax charged on most property transactions.
When purchasing land, a house or an investment property, the amount of duty payable depends on:
- The dutiable value of the property (the market value or purchase price, whichever is higher)
- Whether you intend to live in the property
- Whether you qualify for an exemption or concession
- Whether you are considered an overseas purchaser
In some cases, first home buyers may also be eligible for additional support, such as the First Home Buyers Grant or the First Home Guarantee, alongside duty concessions.
Land Transfer Duty in Victoria
In Victoria, stamp duty is referred to as land transfer duty. The amount payable is calculated using a tiered rate system — meaning higher-value properties are taxed at higher rates.
Land transfer duty is generally paid at settlement and must be finalised before the property transfer can be registered.
The State Revenue Office (SRO) provides an online calculator to estimate how much duty you may need to pay, factoring in whether the property will be your principal place of residence and whether you qualify for any concessions or exemptions.
Stamp Duty Concessions and Exemptions in Victoria
Several concessions and exemptions may be available to Victorian home buyers, each with specific eligibility requirements.
First home buyers may be able to access multiple benefits, including the first home buyer duty exemption and the off-the-plan concession, in addition to the First Home Owner Grant.
1. First Home Buyer Duty Exemption or Concession (Up to $750,000)
Eligible first home buyers in Victoria may receive a full exemption or reduced stamp duty, making entering the property market more affordable.
Property value thresholds:
- Up to $600,000 — Full exemption (no stamp duty payable)
- $600,001 to $750,000 — Concessional rate (reduced duty payable)
- Above $750,000 — Standard duty rates apply
How It Works
- Applies to eligible buyers purchasing a property within the value thresholds
- Not available if you have previously owned property in Australia
- Can apply to new or established homes, or vacant residential land intended for your first home
- Any portion of value above the concession threshold is taxed at general duty rates
Eligibility Criteria
You must:
- Be an individual (not a company or trust) aged 18 or over
- Be an Australian citizen or permanent resident
- Purchase the property as your principal place of residence
- Pay market value for the property
Residency requirements include:
- At least one buyer must live in the home as their principal residence for a continuous 12-month period, commencing within 12 months of settlement
- For vacant land, you must move in within 12 months of the occupancy certificate being issued or within 36 months of settlement (whichever occurs first)
- All purchasers must be enrolled to vote in Victoria
These residency requirements do not apply to current members of the Australian Defence Force.
2. Off-the-Plan Duty Concession
The off-the-plan concession reduces the amount of transfer duty payable when you sign a contract before construction of the property is completed.
Under this concession, duty is calculated based on the land value plus the value of construction completed at the time of signing — not the finished property value.
Example:
If you purchase an apartment off the plan for $600,000 before construction begins, and $450,000 of that price relates to construction costs, duty may be calculated on $150,000 instead of the full purchase price.
How It Works
- Duty is assessed on a reduced dutiable value
- The developer calculates the reduction using approved methods
- Your conveyancer receives the adjusted value before settlement
Thresholds
- $750,000 for first home buyers
- $550,000 for non-first home buyers purchasing a principal place of residence
Eligible Property Types (Conditions Apply)
- Certain house and land packages
- Apartments, units and townhouses
- Some refurbished lots
Eligibility Requirements
- Contract must be signed before construction is complete
- Buyers must be over 18 and eligible for either the principal place of residence concession or the first home buyer concession
- Not available to companies or trustees
- At least one buyer must occupy the property within 12 months and live there for at least 12 months
A broader temporary concession may apply to apartments, units and townhouses for contracts signed between 21 October 2024 and 21 October 2026, subject to separate conditions.
3. Principal Place of Residence (PPR) Concession (Up to $550,000)
The PPR concession reduces stamp duty for buyers purchasing a property they intend to live in as their primary residence. This concession is available to all eligible home buyers — not just first home buyers.
How It Works
- Applies to new or established homes
- Can be combined with the first home buyer exemption or certain pensioner concessions
- First home buyers pay no stamp duty on homes valued up to $600,000
Eligibility Requirements
- You must move in within 12 months of settlement
- The property must be your primary residence for at least 12 months
- Where there are multiple buyers, at least one must meet the residency requirement
- Not available for gifted or heavily discounted properties
The PPR concession may also apply to vacant land valued up to $500,000 (excluding the build cost). You must move in within:
- 12 months of receiving the occupancy certificate, or
- 36 months of settlement (whichever comes first)
4. Pensioner and Concession Cardholder Reduction
Eligible pensioners and concession cardholders may qualify for a one-off reduction or exemption from land transfer duty when purchasing a home to live in.
Eligibility criteria differ depending on whether the contract was signed before or after 1 July 2023. Further details are available via the State Revenue Office website.
How to Apply
Your conveyancer or legal representative will typically manage the stamp duty process once your contract has been signed.
In Victoria, all property transfers require submission of an electronic Digital Duties Form through the State Revenue Office’s online portal. This form calculates duty payable, including any applicable concessions or exemptions.
Because stamp duty calculations can be complex, consider seeking independent financial advice or speaking with a mortgage broker to ensure you understand your entitlements.
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