At a glance — Victorian first home buyer concessions 2026
| Stamp duty exemption — full | Purchases up to $600,000 — $0 stamp duty payable |
| Stamp duty concession — sliding | Purchases $600,001 to $750,000 — concession tapers down across the band |
| Above $750,000 | Standard stamp duty applies (no first home buyer concession) |
| First Home Owner Grant | $10,000 (newly built homes only) — administered by State Revenue Office |
| Off-the-plan concession | Extended to 21 April 2027 — substantially reduces dutiable value |
| Stacking | Off-the-plan concession + first home buyer exemption can stack |
| Thresholds unchanged since | 1 July 2017 |
| Legal basis | Duties Act 2000 (Vic), First Home Owner Grant Act 2000 (Vic) |
| Must live in property | At least 12 continuous months within first year after settlement |
| Previous ownership rule | Neither you nor partner can have owned residential property in Australia |
| Citizenship rule | At least one purchaser must be Australian citizen, PR, or NZ citizen with special category visa |
| Our fixed conveyancing fee | $660-$990, includes stamp duty exemption coordination |
What does first home buyer conveyancing actually involve?
First home buyer conveyancing in Victoria is conveyancing where the buyer is eligible to claim the first home buyer stamp duty exemption (purchases up to $600,000) or concession (purchases $600,001 to $750,000), and may also be eligible for the $10,000 First Home Owner Grant on newly built homes. The exemption and concession are administered under the Duties Act 2000 (Vic) and the First Home Owner Grant Act 2000 (Vic), with applications and verification processed by the State Revenue Office. The thresholds — $600,000 for full exemption, $750,000 for concession cut-off — have remained unchanged since 1 July 2017 despite substantial Melbourne property price growth, meaning first home buyer choice is increasingly squeezed at the $600K boundary. For purchases close to either threshold, structuring matters: a small price negotiation can save tens of thousands in stamp duty. At Fogarty Oliver Rothschild, principal lawyer Elisa Rothschild BA/LLB coordinates first home buyer stamp duty exemption and grant applications as part of the $660-$990 fixed conveyancing fee. This guide is for first home buyers in Victoria who want to understand what they're entitled to, how to claim it, and what commonly goes wrong.
Book a free 15-minute consultation → | Call 0480 031 704
What is the first home buyer stamp duty exemption in Victoria?
The Victorian first home buyer duty exemption and concession is a reduction or removal of land transfer duty (commonly called stamp duty) for eligible first home buyers.
How it works:
| Purchase price | Stamp duty for first home buyer | Saving vs standard rate |
|---|---|---|
| $500,000 | $0 (full exemption) | ~$21,000 |
| $600,000 | $0 (full exemption) | ~$31,000 |
| $620,000 | ~$5,000 (partial concession) | ~$26,000 |
| $650,000 | ~$10,000 (partial concession) | ~$23,000 |
| $700,000 | ~$22,000 (partial concession) | ~$15,000 |
| $750,000 | ~$40,000 (concession ends) | ~$0 |
| $800,000 | Standard duty applies | $0 |
(Figures indicative — use the SRO calculator for your specific situation.)
The critical thresholds:
- $600,000 or less: Full exemption — you pay $0 stamp duty
- $600,001 to $750,000: Sliding concession that tapers from substantial savings at $600,001 to nothing at $750,000
- $750,001 or more: No first home buyer concession; standard stamp duty applies
The taper between $600,001 and $750,000 is steep. A purchase at $620,000 pays approximately $5,000 stamp duty (saving ~$26,000); a purchase at $700,000 pays approximately $22,000 (saving only ~$15,000); a purchase at $750,000 pays full standard duty.
Who is eligible for the first home buyer concession?
Eligibility is determined under sections 57H to 57K of the Duties Act 2000.
The core eligibility tests:
- First home test: Neither you nor your spouse/partner can have previously owned residential property in Australia. (Some pre-1 July 2000 ownership may be excluded if you haven't lived in it since.)
- Citizenship test: At least one purchaser must be an Australian citizen, permanent resident, or New Zealand citizen on a special category visa.
- Residency test: You must move into the property within 12 months of settlement and live there as your principal place of residence for at least 12 continuous months.
- Purchase price test: Dutiable value of the property must be $750,000 or less to qualify for any concession; $600,000 or less for full exemption.
Common eligibility pitfalls:
- Partner has previously owned property. Even if you've never owned property yourself, your partner's previous ownership may disqualify both of you. This is true even if you're not married — de facto relationships count.
- You owned property as an investor before living in your own home. Investor ownership counts as previous ownership.
- You inherited property. Inherited property generally counts as previous ownership.
- You're a foreign buyer. Foreign buyers don't qualify for the first home buyer exemption AND pay an additional 8% foreign purchaser additional duty.
- You don't move in within 12 months. Failure to satisfy the residency requirement triggers clawback — the State Revenue Office can reclaim the stamp duty exemption.
Each of these scenarios should be discussed with your conveyancer at the free consultation. Misclaiming the exemption triggers SRO investigation and clawback.
What is the $10,000 First Home Owner Grant?
The First Home Owner Grant (FHOG) is a separate $10,000 cash grant administered under the First Home Owner Grant Act 2000.
Key features:
- $10,000 cash grant, paid through your bank at settlement or shortly afterward
- Applies to newly built homes only — newly constructed houses, off-the-plan apartments, substantially renovated properties, or owner-builder homes
- Does NOT apply to established (existing) homes
- Price cap: home must be valued at $750,000 or less
- Combined eligibility criteria similar to stamp duty exemption (first home, residency, citizenship)
Stacking with stamp duty exemption:
If you buy a newly built home under $600,000, you can stack:
- $0 stamp duty (full first home buyer exemption)
- $10,000 FHOG cash grant
Combined value: substantial. For example, a $580,000 new apartment with otherwise standard stamp duty of ~$28,000 would result in:
- Standard buyer: $28,000 stamp duty, $0 grant = $28,000 cost
- First home buyer (new build): $0 stamp duty, +$10,000 grant = net $10,000 saving + $28,000 stamp duty saved = $38,000 better off
Application: FHOG applications are submitted at settlement through the SRO. Your conveyancer coordinates the application as part of conveyancing.
What's the off-the-plan stamp duty concession?
The off-the-plan stamp duty concession is a separate, temporary concession that reduces the dutiable value of an off-the-plan property by excluding construction costs from the value calculation.
Key features (as at May 2026):
- Available for off-the-plan apartments, townhouses, and units
- Extended to 21 April 2027 (announced in 2026-27 Victorian Budget)
- Available to all buyers — owner-occupiers, investors, first home buyers
- Reduces dutiable value by the construction component of the purchase price
How it works in practice:
You buy a $700,000 off-the-plan apartment. The contract identifies $400,000 of the price as relating to construction, $300,000 as relating to land. Under the off-the-plan concession, stamp duty is calculated only on the $300,000 land component.
If you're also a first home buyer:
- $300,000 dutiable value is under the $600,000 full exemption threshold
- First home buyer exemption applies — $0 stamp duty
- Effective stamp duty: $0 on a $700,000 purchase
- (Standard stamp duty without concessions would be ~$37,000)
Stacking: Off-the-plan concession + first home buyer exemption can stack, making off-the-plan particularly attractive for first home buyers.
Discuss off-the-plan structuring — book a free consultation →
Why does the $600,000 threshold matter so much?
The $600,000 threshold creates a "cliff" effect in Victorian first home buyer economics.
At $600,000: $0 stamp duty + $10K FHOG (if new build) = maximum benefit
At $620,000: ~$5,000 stamp duty + $10K FHOG (if new build) = same effective net cost as buying at $610,000
At $650,000: ~$10,000 stamp duty = real economic premium over the $600K purchase
The structuring implication:
For purchases close to $600,000, even a small price negotiation can save substantial stamp duty. Examples from 2024-2025 matters:
- A $625,000 contract negotiated down to $598,000: saved ~$5,000 stamp duty + benefited from full exemption
- A $635,000 auction purchase converted to $599,000 via post-auction negotiation on disclosed OC defect issues: saved ~$6,000 stamp duty
- A $620,000 first home buyer who didn't structure: paid $5,000+ in stamp duty unnecessarily
The same dynamic operates at the $750,000 cut-off. A purchase at $750,001 pays full standard duty (no concession at all); a purchase at $749,000 pays a small partial concession. The $2,000 price difference can mean a $5,000+ stamp duty difference.
Senior-lawyer conveyancing structures purchases around these thresholds. Templated services often don't.
What does first home buyer conveyancing include at Fogarty Oliver Rothschild?
Standard $660-$990 fixed fee includes everything needed for a first home buyer purchase.
Specific first home buyer elements:
- Eligibility verification — confirming you meet all the eligibility tests under the Duties Act and First Home Owner Grant Act
- Stamp duty exemption application coordination with the SRO
- FHOG application coordination where applicable (newly built homes only)
- Off-the-plan concession coordination where applicable
- Price-threshold structuring advice where the contract price is close to $600K or $750K
- Residency requirement explanation — you must move in within 12 months and live there 12 continuous months
- Clawback risk explanation — what triggers SRO investigation
- All standard conveyancing — Section 32 review, OC search where applicable, title searches, settlement coordination
Where you'll sit in the $660-$990 range:
- $660 — Standard first home buyer purchase, established home, no OC
- $770 — First home buyer apartment with OC review
- $880 — First home buyer off-the-plan or property with heritage overlay
- $990 — More complex matters (multiple titles, FIRB-affected co-purchaser, off-the-plan with complex contract terms)
Book your free 15-minute consultation →
What goes wrong without proper first home buyer conveyancing?
Three recurring scenarios:
1. Threshold mismanagement. A first home buyer signs at $625,000 believing they'll get the full exemption. They actually get a partial concession (the full exemption ends at $600,000). They pay $5,000 stamp duty they didn't budget for. A senior conveyancer would have advised structuring the price to fall under $600,000 or accepted the partial concession explicitly.
2. Partner's prior ownership disqualifies. Two partners purchase together; one has previously owned investment property. The first home buyer exemption is claimed and granted at settlement. The SRO subsequently audits, identifies the previous ownership, and claws back the exemption plus penalties. The matter could have been handled differently (sole purchaser, restructured ownership) had it been identified pre-contract.
3. Failure to satisfy residency requirement. A first home buyer settles, then doesn't move in within 12 months due to change of personal circumstances. The SRO audits and claws back. With proper conveyancing advice pre-contract, the buyer would have understood the residency obligation and either structured to satisfy it or considered alternative arrangements.
A 2024 Carnegie matter: A first-home buyer reviewing a Section 32 on a $590K one-bedroom apartment in a 2018-built Carnegie building. Form 23 showed annual levies. We pulled the OC minutes — disclosed $14-$25K per unit special levies anticipated within 24 months for façade defects. We coordinated three steps: renegotiated price by $20K (taking it to $570K — comfortably under $600K full exemption threshold), claimed the full first home buyer exemption ($0 stamp duty), and processed the FHOG application (the building was newly built, qualifying it for the grant). Net result: buyer saved $20K on price, $0 stamp duty (saved ~$28K), and received $10K FHOG. Combined benefit: ~$58K compared to the original $590K position.
(Client names withheld. Identifying details modified.)
How does first home buyer stamp duty exemption interact with other Victorian schemes?
Victorian Homebuyer Fund. The Victorian Homebuyer Fund (VHF) is a separate scheme where the state government takes an equity share in your home in exchange for a smaller deposit requirement. VHF eligibility and conditions are separate from stamp duty exemption and the FHOG. VHF requires repayment when the property is sold or refinanced (the state's equity share grows with the property's value).
First Home Guarantee (Commonwealth). The Commonwealth First Home Guarantee allows eligible first home buyers to purchase with as little as a 5% deposit (no Lenders Mortgage Insurance) up to certain price caps. This is separate from Victorian stamp duty exemption and the FHOG. The price caps vary by area.
Stacking: All three (Victorian stamp duty exemption + FHOG + Commonwealth First Home Guarantee) can stack for eligible buyers on eligible properties. Your conveyancer coordinates the State Revenue Office side (exemption + FHOG); your mortgage broker or bank typically coordinates the Commonwealth side.
What about purchases between $600K and $750K — should I even bother?
Yes. The sliding concession in the $600,001-$750,000 band is still substantial.
Worked example at $680,000:
- Standard stamp duty (no first home buyer): approximately $35,000
- First home buyer concession at $680,000: approximately $14,000
- Saving: approximately $21,000
That's still a meaningful concession. But the savings taper quickly. At $720,000, the concession is approximately $11,000 (saving ~$8,000). At $750,000, the concession is approximately $0.
Structuring advice for purchases in this band:
If your target purchase price is around $720,000-$750,000 and your budget has some flexibility, ask whether structuring the purchase at, say, $695,000 would meaningfully change your outcome. Sometimes yes, sometimes no.
For purchases just over $750,000 (e.g. $760,000), structuring the price back under $750,000 can sometimes preserve at least a small concession. The SRO scrutinises price reductions that look artificial; the structuring needs to be commercially genuine.
What are the residency requirements I need to know?
To claim the stamp duty exemption or concession (and the FHOG where applicable), you must satisfy the residency requirement.
The rules:
- Move into the property within 12 months of settlement
- Live there as your principal place of residence for at least 12 continuous months
- Don't rent out the property during this period
Practical implications:
- If you settle but can't move in immediately (renovation, work commitments), you have some flexibility — but the 12-month clock starts at settlement
- If you move out within the 12 months (job relocation, relationship change), the SRO can claw back the exemption
- If you partially rent the property (sublet a room while living there), this is generally accepted as long as you remain the principal occupier
If something changes:
If your circumstances change after settlement and you can't satisfy the residency requirement, contact the SRO promptly. There are limited circumstances where the requirement can be modified; the SRO is generally fair but the decision is theirs.
How long does first home buyer conveyancing take?
Standard industry timelines apply.
| Stage | Typical timeframe |
|---|---|
| Pre-contract Section 32 review | 1-3 business days |
| Contract signed → settlement | 30, 60, or 90 days |
| Cooling-off period | 3 clear business days (private sale only) |
| FHOG application processing | Typically settled at settlement |
| Stamp duty exemption verification | Settled at settlement |
| Final settlement | PEXA on agreed date |
For first home buyer auction purchases, urgent pre-contract review is essential. There's no cooling-off period in an auction sale.
Call 0480 031 704 for urgent matters.
Frequently asked questions
What's the first home buyer stamp duty threshold in Victoria 2026?
$600,000 for full exemption (you pay $0 stamp duty), $600,001 to $750,000 for a sliding concession that tapers down across the band. Above $750,000, standard stamp duty applies with no concession. These thresholds have not changed since 1 July 2017.
How much can a first home buyer save in Victoria?
For a $600,000 purchase, the full exemption saves approximately $31,000 in stamp duty. With the FHOG (newly built homes only), an additional $10,000 cash. For an off-the-plan apartment under $600,000 with the off-the-plan concession stacking, the saving can be substantially higher.
Do I qualify for the first home buyer concession if my partner has previously owned property?
Generally no. The eligibility test looks at both purchasers and their spouses/partners. Your partner's previous ownership disqualifies you both. This applies to de facto partners as well as married couples.
What is the First Home Owner Grant in Victoria 2026?
A $10,000 cash grant under the First Home Owner Grant Act 2000, payable to eligible first home buyers purchasing newly built homes (new constructions, off-the-plan, substantial renovations). Not available for established homes. Price cap $750,000.
Can I stack the first home buyer exemption with the off-the-plan concession?
Yes. For an off-the-plan apartment, the off-the-plan concession first reduces the dutiable value by excluding construction costs. If the reduced dutiable value falls under $600,000, the first home buyer full exemption then applies. The combination can mean $0 stamp duty on apartments that nominally sell for $700,000 or more.
What happens if I don't move into the property within 12 months?
The State Revenue Office can claw back the stamp duty exemption (and grant if applicable). There are limited circumstances where this can be modified; contact the SRO promptly if your circumstances change.
Is the off-the-plan concession only for first home buyers?
No — the off-the-plan concession is available to all buyers (owner-occupiers and investors) for contracts signed before 21 April 2027. It just happens to combine particularly well with first home buyer exemption for eligible first home buyers.
What if I bought property before 2000 but never lived in it?
You may still qualify for the first home buyer exemption — the eligibility rules specifically address pre-1 July 2000 ownership in some cases. Discuss your specific circumstances at the free consultation.
Can I claim the FHOG on an established home?
No. The First Home Owner Grant applies only to newly built homes (new construction, off-the-plan, substantial renovations, owner-builder). Established homes are not eligible for the FHOG even though they may still qualify for the stamp duty exemption.
How much does first home buyer conveyancing cost?
At Fogarty Oliver Rothschild, $660-$990 fixed fee including stamp duty exemption coordination, FHOG application, and (where applicable) off-the-plan concession coordination. Disbursements at cost. No surprise charges.
Should I be worried if my contract is at $625,000?
Worth a conversation. At $625,000 you'll get a partial concession (not full exemption). Structuring the price back under $600,000 saves additional stamp duty — sometimes feasible, sometimes not. We discuss this at consultation before contract.
Ready to discuss your first home purchase?
The first 15 minutes are free.
📧 elisa@fogartyoliverandrothschild.com.au
📍 84 Chapel Street, St Kilda VIC 3182
🌐 Book a free 15-minute consultation online →
Hours: Monday to Friday, 9am–5pm. After-hours for auction weeks.
Written and reviewed by Elisa Rothschild BA/LLB — Principal Lawyer, Fogarty Oliver Rothschild. Admitted to legal practice in Victoria. Conveyancing and property law in Melbourne since 2012. Last reviewed 27 May 2026.
This guide is general information about Victorian conveyancing, not legal advice for your specific transaction. For advice on your matter, book a free 15-minute consultation.