Stamp Duty Exemptions for First Home Buyers Australia 2026 — Every State Explained

How First Home Buyer Duty Relief Works

Stamp duty (formally transfer duty) is a state tax, so there is no national first home buyer exemption — each of the eight states and territories runs its own scheme with its own name, thresholds and fine print. Despite the differences, almost all share the same architecture: a full exemption threshold (buy an eligible home at or below a certain dutiable value and pay no duty at all), and above it a tapering concession band where duty phases back in gradually as the price rises. Past the top of the concession band, ordinary rates apply and first home buyer status stops mattering.

The critical thing to understand in 2026 is that these thresholds move. They are set by each state government and routinely revised at state budgets — sometimes generously, sometimes frozen for years while prices rise past them. That is why this guide focuses on how each scheme is structured rather than quoting dollar figures that may be stale by the time you read them. For live numbers on your actual purchase price, use our stamp duty calculator or check your state revenue office directly.

State-by-State: How Each Scheme Is Structured

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

NSW runs the classic two-tier model: a full exemption below one threshold and a sliding concession up to a higher ceiling, administered by Revenue NSW. It applies to both new and established homes, with separate (lower) thresholds for vacant land bought to build on. NSW's earlier opt-in annual property tax for first home buyers was closed to new entrants, so the current scheme is the straightforward exemption/concession structure. Thresholds have been lifted several times in recent years, so verify the current bands before you exchange.

Victoria — First Home Buyer Duty Exemption and Concession

Victoria's State Revenue Office offers a full exemption below one dutiable-value threshold and a tapering concession up to a second, for new and established homes alike. Victoria also layers on off-the-plan duty concessions, which assess duty on the land-plus-completed-construction value at contract date rather than the finished price — for apartment buyers, this can bring the dutiable value under the first home buyer exemption line even when the contract price sits well above it.

Queensland — First Home Concession

Queensland works a little differently: it applies a home concession rate (a discounted duty scale for owner-occupiers) and then a further first home concession that can reduce duty to zero below a value threshold, phasing out above it, with a separate concession for vacant land. Queensland restructured these concessions in recent budgets — including moves toward abolishing duty on new builds for first home buyers — so the new-versus-established distinction matters more here than in most states. Confirm current rules with Queensland Revenue Office.

Western Australia — First Home Owner Rate of Duty

WA applies a special "first home owner rate" of duty: zero below one threshold, then a concessional rate on the amount over it up to a cap, with separate bands for vacant land. WA has recently differentiated thresholds by location (metropolitan versus regional) — another reason to check the current schedule for your specific area rather than assume a single statewide figure.

South Australia — First Home Buyer Relief

RevenueSA now provides duty relief for first home buyers purchasing new homes, off-the-plan apartments or vacant land to build on, with value caps removed for eligible new builds. The key structural feature: established homes are excluded — buy an existing house and you pay full duty regardless of first home buyer status.

Tasmania — First Home Duty Concession

Tasmania's scheme has flipped between percentage discounts and full exemptions in recent years; the current structure is a full exemption for eligible first home buyers of established homes below a value cap, alongside separate new-build incentives. Because both the rate and cap have changed multiple times, checking the State Revenue Office of Tasmania's current settings matters here more than most.

Australian Capital Territory — Home Buyer Concession Scheme

The ACT is the outlier: its Home Buyer Concession Scheme is income-tested rather than price-capped. Eligibility depends on household gross income (adjusted for dependent children) over the previous financial year, and relief is capped at a maximum duty amount rather than tied to a property value. It is also not strictly a "first home" test — applicants must not have owned property within a recent lookback period, which can help buyers re-entering the market.

Northern Territory — House and Land Package Exemption

The NT has cycled through several schemes; current relief focuses on new builds — exemptions for house-and-land packages and land to build on — with established-home concessions introduced, abolished and reintroduced over the years. NT buyers should confirm directly with the Territory Revenue Office.

Eligibility Traps That Catch Buyers Out

Every scheme has the same broad shape of eligibility rules, and the same handful of traps recur across states:

• Residence requirements. You must move in within a set period (typically 12 months of settlement) and live there continuously for a minimum period — commonly 6 to 12 months depending on the state. Claiming the exemption and then renting the property out is the most common way buyers lose it.
• Any prior ownership counts. "First home" generally means you have never held an interest in residential property anywhere in Australia — including an investment property you never lived in, a part-share, or in some circumstances inherited property. A half-share in a unit from a deceased estate a decade ago can be enough to disqualify you.
• Your spouse's history counts too. Most states test your spouse or de facto partner's ownership history even if they are not going on the title — you generally cannot restore eligibility by leaving a previously-owning partner off the contract.
• New versus established distinctions. In SA and the NT, relief is largely confined to new builds; in Queensland the split affects which concession applies. Assuming NSW-style rules apply to a purchase in Adelaide is an expensive mistake.
• Everyone on the title must qualify. Buying jointly with a parent or investor friend who has owned before will usually reduce or eliminate the concession — some states apportion it, others deny it outright.

How Duty Exemptions Interact with FHOG and Federal Schemes

Buyers frequently conflate three separate programs. The First Home Owner Grant (FHOG) is a cash grant paid by your state, generally restricted to new homes below a price cap — a payment to you, whereas the duty exemption is a tax you simply do not pay. They have separate eligibility tests but similar first-home and residence requirements, and in most states you can receive both on the same new-home purchase.

The federal Home Guarantee Scheme (the "5% deposit" scheme, expanded in 2025-26) is different again: the Commonwealth guarantees part of your loan so you can buy with a small deposit and no lenders mortgage insurance. It has no effect on stamp duty either way. Stacking all three — duty exemption, FHOG and Home Guarantee — on a modestly priced new build is often the strongest combined package available to a first home buyer.

What the Exemption Is Actually Worth: An Indicative Example

To make the value concrete without pretending precision: on a home priced around the middle of a typical exemption band — roughly $650,000–$750,000 — full transfer duty at ordinary rates in most states lands somewhere around ~$25,000–$40,000. A first home buyer with a full exemption keeps all of that. On a $700,000 purchase with a 10% deposit, that is roughly a third to a half of the deposit itself — money that would otherwise need saving on top, since duty cannot normally be added to the loan. Even a partial concession in the tapering band routinely saves ~$10,000–$20,000. Run your actual numbers through the stamp duty calculator for the with-and-without comparison in your state.

How to Claim: The Application Process

In practice you rarely apply yourself. Your conveyancer or solicitor lodges the exemption or concession application with the state revenue office as part of the duty assessment, so the reduced (or zero) amount is what actually gets paid at settlement. Your job is to:

1. Tell your conveyancer you are a first home buyer before exchange, so the purchase is structured correctly (who is on the title matters).
2. Complete the declaration honestly — prior ownership history, citizenship or residency status, and your intention to occupy.
3. Actually meet the residence requirement, keeping evidence (utility bills, electoral enrolment, licence address).
4. Notify the revenue office if circumstances change — most states allow partial relief or repayment arrangements if you come forward voluntarily.

Revenue offices actively audit these schemes, data-matching against rental bond boards, electoral rolls and utility records. Breach the conditions and the duty is clawed back in full, usually with interest and potentially penalty tax on top.

Frequently Asked Questions

Can I get a stamp duty exemption if my partner has owned property before?

Usually not. Most states assess every purchaser on the title, and several also test your spouse or de facto partner's history even if they are not on the title. If your partner has previously owned residential property in Australia, the exemption is generally lost for the whole purchase.

Is the exemption available for investment properties?

No. Every scheme requires you to occupy the home as your principal place of residence, usually within 12 months of settlement and for a continuous minimum period (commonly 6–12 months). Renting it out from settlement voids the concession and full duty becomes payable, typically with interest.

Do I still pay duty on a property above the exemption threshold?

Often yes, but at a reduced rate. Most states taper the concession above the full-exemption threshold, so duty phases back in gradually rather than hitting the full amount the moment you cross the line; above the concession ceiling, normal rates apply. The calculator shows where your price lands against current bands.

Can I combine the duty exemption with the First Home Owner Grant?

In most cases, yes. The FHOG is a separate cash grant (generally new homes only) with its own eligibility test; claiming one does not disqualify you from the other. Federal schemes such as the Home Guarantee are separate again and do not affect duty.

What happens if I break the residence requirement?

The state revenue office can reassess and claw back the full duty, plus interest and possible penalties. If a genuine change of circumstances (job transfer, relationship breakdown) prevents you meeting the requirement, contact the revenue office early — voluntary disclosure is treated far more leniently than being caught in an audit.

For the full picture of how duty is calculated in every state, see our complete Australian stamp duty guide, and if you do not qualify for a first home buyer scheme, our guide to legitimate ways to reduce stamp duty covers the other levers available.