First Home Buyer's Guide to Stamp Duty in Australia (2025)

Stamp duty is one of the largest upfront costs when buying your first home in Australia — often $15,000 to $40,000 depending on the state and purchase price. The good news: most states offer substantial exemptions or concessions for first home buyers that can eliminate or significantly reduce this cost.

This guide covers every state and territory, the current thresholds for 2025, and what you need to do to claim the concession.

What is stamp duty and why does it matter for first home buyers?

Stamp duty (formally called transfer duty in most states) is a government tax charged when property ownership changes hands. It's calculated as a percentage of the purchase price, using a progressive bracket system — and it must be paid in cash at settlement. Unlike your mortgage, it cannot be borrowed.

For a first home buyer purchasing at $700,000, stamp duty at standard rates would be approximately $24,000–$30,000 depending on the state. Getting this down to zero — or near zero — can mean the difference between having enough saved and not.

State-by-state FHB stamp duty guide (2025)

New South Wales — First Home Buyers Assistance Scheme (FHBAS)

NSW offers some of the most generous FHB stamp duty relief in the country as of 2025:

• Established homes up to $800,000: full exemption ($0 stamp duty)
• Established homes $800,001–$1,000,000: partial concession on a sliding scale
• New homes up to $800,000: full exemption (same as established)
• Vacant land up to $350,000: full exemption
• Vacant land $350,001–$450,000: partial concession

Saving at $750,000: The standard duty would be approximately $28,163. With the FHBAS, you pay $0 — a saving of $28,163.

Eligibility: All purchasers must be first home buyers. You must move in within 12 months and live there for at least 12 months. The FHOG of $10,000 is also available for new homes.

Victoria — First Home Buyer Duty Exemption

• Up to $600,000: full exemption
• $600,001–$750,000: partial concession tapering from full exemption to standard duty
• Above $750,000: standard duty applies

Saving at $550,000: Standard duty ≈ $25,070 PPR rate. With FHB exemption = $0.

VIC also offers the $10,000 First Home Owner Grant — but only for new homes in regional Victoria (not metropolitan Melbourne, where the grant was discontinued).

Queensland — Home Concession + FHB Concession

QLD has two layers of benefit for first home buyers:

• Owner-occupier home concession rate: All owner-occupiers (not just FHB) pay a lower duty rate on principal residences. This starts at 1% on the first $350,000 instead of the standard rate.
• FHB concession on established homes up to $700,000: Full exemption, taper to $800,000.
• FHB new homes and vacant land (from 1 May 2025): Full exemption with no value cap. This is the most generous FHB new home policy in Australia.

FHOG: $30,000 for eligible new builds (confirm current rate — subject to change).

Western Australia — FHO Rate (updated May 2026)

• Homes up to $600,000: full exemption (thresholds updated May 2026)
• Homes $600,001–$800,000: partial concession
• Vacant land up to $450,000: full exemption
• Vacant land $450,001–$550,000: partial concession

FHOG: $10,000 for new homes in the south-west land division.

South Australia — No duty concession, but a $15,000 grant

SA does not offer a stamp duty concession for first home buyers. However, eligible buyers of new homes receive a $15,000 First Home Owner Grant. This is a cash payment applied at settlement, partially offsetting the stamp duty cost.

Stamp duty on a $600,000 established home in SA = approximately $30,330. The $15,000 FHOG halves the effective out-of-pocket cost if buying new.

ACT — Home Buyer Concession Scheme (income-tested)

ACT's HBCS provides a significant duty concession for eligible buyers, but it is income-tested. There are no longer any FHOG payments in ACT. The concession can be substantial — check current income thresholds on the ACT Revenue website as they are updated annually.

Tasmania — 50% concession for established homes

FHB in Tasmania pay 50% of the standard stamp duty on established homes valued up to $600,000. On a $500,000 home where standard duty is $18,248, you pay $9,124.

Northern Territory — Territory Home Owner Discount

The NT Territory Home Owner Discount provides up to approximately $18,601 in duty relief for eligible first and subsequent home buyers. It is eligibility-tested — check with NT Revenue for current conditions.

Quick comparison: FHB saving at $600,000 (established home, 2025)

Use our Stamp Duty Calculator to get exact figures for your state and property value. Tick "First Home Buyer" to see the concession applied instantly.

Common mistakes that cost first home buyers their concession

• Not moving in within 12 months. Most states require you to occupy the property within 12 months of settlement. Investment purposes or delays disqualify you.
• Buying jointly with a non-FHB partner. In most states, the exemption doesn't apply if any purchaser has previously owned property in Australia.
• Purchasing under a company or trust. FHB concessions apply to individuals purchasing in their own name.
• Exceeding the threshold and not accounting for the taper. If your property is just above the full exemption threshold, you still get a partial concession — it's not all-or-nothing. Use the calculator to see the exact amount.
• Not lodging the correct form. In most states, you must lodge a First Home Owner exemption claim form through your conveyancer. It's not automatic.

Frequently asked questions

Stamp duty rates, exemption thresholds and FHOG amounts are based on official state revenue office information current as at July 2025. These change regularly — always verify with your state revenue office or conveyancer before exchanging contracts. This article is general information only and does not constitute legal or financial advice.