Updated July 2026. Stamp duty (transfer duty) is usually the largest single upfront cost of buying property in Australia after the deposit itself — often tens of thousands of dollars. The good news is that every state and territory builds legitimate exemptions and concessions into its duty legislation, and using them is not a loophole: it's exactly what the schemes are there for. This guide covers the avenues that genuinely work, and the "strategies" that are actually fraud. Because thresholds and rates change with every state budget, we deliberately avoid quoting exact figures here — always check current thresholds on your state revenue office site or run your numbers through our stamp duty calculator.
1. First home buyer exemptions and concessions
The single most valuable duty reduction in Australia is the first home buyer (FHB) exemption. Every state and territory offers some version of it, and the structure is broadly similar even though the numbers differ:
- A full exemption band: buy below a certain price and you pay no duty at all.
- A concession (tapering) band: between the full-exemption cap and an upper cap, duty phases back in on a sliding scale. Even partway up this band the saving can still be substantial.
- Eligibility conditions: typically you (and your partner) must never have owned residential property in Australia, must be over 18, must be an Australian citizen or permanent resident, and must move in within a set period (commonly 12 months) and live there for a minimum continuous period.
The caps vary significantly between states, and several have moved in recent budgets, so verify the current figures before you set your budget. Our first home buyer exemptions guide covers each state's scheme structure in detail.
2. Buy below the concession threshold — deliberately
Because FHB schemes taper, the effective cost of paying slightly more for a property can be brutal near the caps. A few thousand dollars of extra purchase price near the top of a concession band can add many times that in duty once the concession phases out. If you're shopping near your state's cap, it can genuinely be worth targeting properties under the full-exemption threshold, or negotiating harder to land there. This is entirely legal — you're choosing what to buy and what to offer. What you cannot do is agree a lower headline price and secretly pay the difference on the side.
3. Buy vacant land and build
In most states, duty is assessed on the dutiable value at the date of the contract. If you buy vacant land under one contract and then sign a separate building contract with a builder afterwards, duty is generally payable on the land value only — the construction cost never becomes dutiable. On a house-and-land package where the land is a fraction of the total, that can slash the duty bill compared with buying an equivalent established home. Two cautions: the contracts genuinely need to be separate and appropriately sequenced (a single completed house-and-land contract may be assessed on the total), and states also run generous FHB concessions specifically for vacant land, often with their own caps. Get your conveyancer to confirm the structure before signing anything.
4. Off-the-plan concessions (where offered)
Some states — Victoria most notably, historically — offer off-the-plan concessions where duty is calculated on the contract price minus the value of construction still to be completed at the contract date. Sign early in a development and the dutiable value can be a fraction of the finished price. These concessions have been repeatedly widened, narrowed and re-targeted over the years, so check what is currently on offer in your state — and weigh the non-duty risks of off-the-plan buying: delays, sunset clauses, and settlement valuations coming in below the contract price.
5. The ACT: duty being phased into rates
The ACT has spent well over a decade progressively abolishing conveyance duty and replacing the revenue with higher general rates, so duty on ACT purchases is structurally lower than in most states, with income-tested concessions on top. The catch: you pay it back over time through higher annual rates, so it's a cash-flow trade rather than a free lunch.
6. Pensioner and concession-card holder schemes
Several states offer duty concessions, exemptions or deferrals for eligible pensioners and concession card holders — usually aimed at downsizers moving to a home below a value cap. Eligibility (which cards qualify, value caps, whether you must sell your existing home) varies widely and changes with budgets. If you or a parent holds a pensioner concession card and is moving house, this is worth a specific check with the relevant state revenue office before exchange.
7. Spousal and family farm transfer exemptions
Two narrow but complete exemptions exist in most jurisdictions:
- Spouse/partner transfers: transferring an interest in the principal place of residence between spouses or de facto partners (for example, moving from sole ownership to joint names) is typically exempt, as are transfers made under a court order or binding financial agreement following relationship breakdown.
- Family farm transfers: most states exempt transfers of primary production land between defined family members, subject to conditions about the land's use continuing as a farming business.
Both exemptions have precise conditions and paperwork requirements — a botched family transfer can trigger full ad valorem duty on market value — so these are firmly "get a lawyer" territory.
8. Timing around announced budget changes
State budgets regularly announce duty changes with a future start date — new FHB caps, expanded off-the-plan concessions, or the winding back of a scheme. Because duty liability generally crystallises at the contract date, delaying (or accelerating) exchange by a few weeks around a commencement date can legitimately change your duty bill by thousands. If a change has been announced in your state, ask your conveyancer exactly which date matters and plan your exchange accordingly. Never rely on a rumoured change that hasn't passed parliament.
What does NOT work
Every conveyancer has heard these, and every state revenue office has anti-avoidance provisions aimed squarely at them:
- Understating the price. Declaring a lower price and paying the balance in cash or via inflated "chattels" is fraud. Duty is assessed on the greater of price and market value, revenue offices data-match against sales records, and reassessment brings penalty tax, interest and potential prosecution for both parties.
- "Gifting" schemes. Gifting a property, or selling it for $1, does not avoid duty: transfers are dutiable at unencumbered market value regardless of the consideration paid.
- Nominee and sub-sale tricks. Contracting in one name and "nominating" the real buyer later, or on-selling before settlement, is specifically targeted by sub-sale and anti-avoidance rules in most states and can result in duty being charged twice.
- Artificial structures. Trusts, options and company interposition schemes marketed as duty-avoidance devices are generally caught by landholder duty rules and general anti-avoidance provisions — and can add foreign or trust surcharge duty on top.
The pattern is simple: concessions written into the legislation work; disguising what actually happened does not.
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Open the Stamp Duty Calculator →Frequently Asked Questions
Is it legal to structure a purchase to reduce stamp duty?
Using exemptions and concessions the law explicitly provides — FHB schemes, off-the-plan concessions, pensioner concessions, spousal transfers — is completely legal and expected. What's illegal is misrepresenting the transaction: understating the price, hiding the real buyer, or splitting contracts artificially. When in doubt, ask your conveyancer whether the arrangement would survive full disclosure to the revenue office.
Can I avoid stamp duty by transferring property to a family member?
Generally no — family transfers are dutiable at market value even with no money changing hands. The main exceptions are spousal transfers of the principal place of residence, transfers under relationship-breakdown orders, and family farm exemptions in some states. Check your state revenue office for the exact conditions.
Does buying vacant land and building really reduce stamp duty?
In most states, yes. With separate land and build contracts, duty is generally payable on the land value only, since the house doesn't exist at the contract date. Structure and timing matter, so confirm with your conveyancer before exchange.
Do pensioners get stamp duty concessions?
Some states offer concessions or deferrals for eligible pensioners and concession card holders, usually for downsizing below a value cap. Rules differ by state and change with budgets — verify current eligibility before relying on one.
Can I just declare a lower purchase price?
No. Duty is charged on the greater of price and market value, declared values are data-matched against sales evidence, and understatement is fraud carrying reassessment, penalties, interest and potential prosecution.
For a full walkthrough of how duty is calculated in each state, see our complete 2026 stamp duty guide, and if you're a first-time buyer, start with the FHB exemptions guide.
Disclaimer: This article is general information only and does not constitute financial, legal or tax advice. Stamp duty rates, thresholds and concession rules change frequently and vary by state and territory. Confirm current figures with your state revenue office and obtain advice from a licensed conveyancer, solicitor or financial adviser before acting.