Are you buying your first home and wondering about transfer duty? You are not alone. Transfer duty, also known as stamp duty, is a government tax that applies when property ownership changes hands.
The amount of transfer duty to be paid is based on the property’s value, and varies by state and territory. Understanding how transfer duty works and whether you qualify for a discount can help you budget effectively for your new home.
What Is the First Home Buyer Transfer Duty Concession and How Does It Work?
The First Home Buyer Transfer Duty Concession is a government incentive designed to help Australians purchase their first home by reducing or waiving transfer duty costs. The concession is applied when you buy a residential property that you intend to live in as your primary residence.
Each state and territory in Australia has its own eligibility criteria, price thresholds, and concession amounts. In some cases, if the property value is under a certain limit, you may not need to pay any transfer duty at all.
If your home’s value is slightly above the threshold, you may still qualify for a reduced duty rate rather than paying the full amount.
This concession applies only to owner-occupied properties–not investment properties. The main goal is to make homeownership more accessible to first-time buyers by easing the upfront financial burden.
Who Is Eligible for the First Home Buyer Transfer Duty Concession?
To qualify for the First Home Buyer Transfer Duty Concession, you must meet several conditions:
You must be a first-time homebuyer: You (and any co-buyers) cannot have owned a home or land in Australia before.
You must be an Australian citizen or permanent resident: Some states allow certain visa holders to apply, but conditions vary between states.
You must purchase a residential property: The property must be intended for living in, not renting out.
You must move into the property within a certain period: Most states require you to move in within 12 months of settlement and live there for at least 6 to 12 months.
The property value must fall within the price threshold: Each state sets its own limits.
If you are buying the home with another person who is not a first-time buyer, only your portion of the purchase may be eligible for the concession. Additionally, the concession does not apply to vacant land unless you plan to build your first home within a set period.
What Are the Property Value Limits for the Concession?
Each state and territory in Australia has different property value thresholds for the First Home Buyer Transfer Duty Concession. Below are the general limits as of 2025 (note that these figures may be updated by state governments):
Queensland: You will not pay any transfer duty if you are eligible to claim a first home concession and the value of the home is $700,000 and under.
New South Wales: Full exemption for homes up to $800,000, with a concessional rate applied for homes between $800,000 and $1,000,000.
Victoria: No duty for homes up to $600,000, with a sliding scale discount for homes up to $750,000.
Western Australia: Full exemption for homes up to $430,000, with reduced duty for homes up to $530,000.
South Australia: No transfer duty for first-home buyers purchasing a home up to $650,000.
Tasmania: 50% discount on transfer duty for homes up to $600,000.
Australian Capital Territory: Stamp duty concessions apply based on income eligibility.
Northern Territory: First-home buyers may be eligible for a grant rather than a concession.
Always check with your state’s revenue office or consult a conveyancer to confirm the latest eligibility requirements and thresholds.
How Do I Apply for the First Home Buyer Transfer Duty Concession?
Applying for the First Home Buyer Transfer Duty Concession is a straightforward process, but it requires careful attention to detail. Follow these steps:
Confirm your eligibility: Ensure you meet the requirements outlined by your state’s revenue office.
Obtain the correct application form: Each state has a specific form, which can usually be downloaded from the official government website.
Gather supporting documents: These may include:
- Proof of identity (passport, driver’s licence, etc.)
- Contract of sale
- Evidence of residence (e.g., utility bills after moving in)
- First Home Owner Grant (FHOG) approval (if applicable)
Lodge your application: Your solicitor or conveyancer can submit the concession application on your behalf during the settlement process.
Await confirmation: Once approved, the concession will be applied to your transfer duty, reducing or eliminating the amount you owe.
It’s important to submit your application before the settlement date to avoid paying full duty and seeking a refund later.
What Happens If I No Longer Meet the Concession Requirements After Purchase?
If you receive the First Home Buyer Transfer Duty Concession but later fail to meet the conditions, you may need to pay back the duty in full or in part. Some situations that could affect your eligibility include:
- Failing to move into the property within the required timeframe: Most states require you to move in within 12 months.
- Selling the property too soon: If you sell or lease out the property before the minimum residency period, you may be required to pay back the duty.
- Providing false information: Any incorrect information on your application could lead to penalties and a demand for repayment.
If circumstances change unexpectedly (e.g., job relocation or medical reasons), you should contact your state’s revenue office immediately to discuss your options. Some states may allow exemptions for genuine hardship cases.
Maximising Your First Home Buyer Benefits
Purchasing your first home is a major financial milestone, and understanding the First Home Buyer Transfer Duty Concession can make a significant difference in reducing costs.
By ensuring you meet the eligibility criteria, staying informed about property value limits, and properly completing your application, you can take full advantage of this government incentive.
If you’re unsure about any part of the process, consulting a professional conveyancer can save you time, money, and potential headaches.
Making Your First Home More Affordable
Buying your first home is a major milestone, and understanding transfer duty can help you plan your finances effectively. Many Australian states offer exemptions or concessions to reduce the cost of purchasing your first home.
By checking your eligibility, applying correctly, and working with an experienced conveyancer, you can maximise your savings and focus on enjoying your new home.
If you are ready to buy your first home and need expert guidance, our partner firm CJC Law is here to help. Our experienced conveyancing team ensures a smooth, stress-free process from contract review to settlement.
Contact us today to discuss how we can assist with your first home purchase and help you claim all eligible benefits.
Principal of Justice Family Lawyers, Hayder specialises in complex parenting and property family law matters. He is based in Sydney and holds a Bachelor of Law and Bachelor of Communications from UTS.
