VIC First Home Buyer Duty Exemption - 100% Stamp Duty Free Up To $600,000
This page is a direct rule-based guide for AU_VIC_FIRST_HOME_DUTY_EXEMPTION (rule version 2025-26, effective 1 July 2025, no scheduled expiry). It explains the full stamp duty waiver Victoria gives first-home buyers on any home (new or established) up to $600,000, the tapered concession that runs from $600,000 to $750,000, the 12-month occupancy obligation that triggers a clawback if you move out too early, and the way this rule stacks with FHOG on a new build but stands alone on a resale home.
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Quick Answer
You may qualify when both state = VIC and first_home_buyer = true hold. The home (any type - brand-new, off-the-plan, established, or vacant land you will build on) must have a dutiable value of $750,000 or less, at least one applicant must be aged 18 or over, at least one must be an Australian citizen or permanent resident, and at least one must move in within 12 months of settlement and live there continuously for at least 12 months as their principal place of residence.
You are blocked when the dutiable value exceeds $750,000 by even a single dollar, when you or your spouse have previously owned a residential property in Australia after 1 July 2000, or when no applicant intends to occupy the home as the principal place of residence within the 12-month window. Investors, holiday-home buyers, and second-home upgraders do not qualify.
Rate logic summary: the rule carries amount.type = eligibility_only with no fixed dollar value, because the saving depends on the contract price and the SRO duty schedule. Three bands matter: 100 percent waiver up to $600,000 (typically saving $31,070 on a $600,000 home), tapered concession from $600,000 to $750,000 (a linear decay - $675,000 saves around $14,800, $740,000 saves around $2,000), and zero benefit above $750,000. The duty saving is applied at settlement by your conveyancer through the SRO Digital Duties Online system.
What Is This Payment?
The Victorian First Home Buyer Duty Exemption is a stamp duty concession tagged in the rule database as a Group B eligibility_only rule inside the VIC First Home Buyer cluster. The entitlement scope is per individual and one-off, meaning the duty saving is delivered once in the buyer's lifetime - if you receive it on this purchase, you cannot claim it again on a later first-home transaction, and a spouse who has previously taken either FHOG or this Duty Exemption disqualifies the household.
The administering body is the State Revenue Office Victoria (SRO). Unlike FHOG, this rule does not pay cash. It works by reducing or eliminating the stamp duty assessed on the land transfer at settlement. Your conveyancer or solicitor lodges the Digital Duties Form for the purchase; the SRO system calculates the discount and reduces the duty payable; the lender then pays the lower duty figure on settlement day. The cash that would have gone to stamp duty stays in the buyer's account.
The rule's design intent is to remove the stamp duty barrier that historically pushed many first-home buyers in the $400,000-$700,000 band out of inner Melbourne and into outer-ring or interstate markets. Because Victoria's full duty rate at $600,000 is roughly $31,000 - one of the highest in Australia for that price band - this concession often delivers more cash benefit to a first-home buyer than the $10,000 FHOG itself does. For an established Northcote or Brunswick cottage at $580,000, the Duty Exemption is the entire benefit; FHOG fails on resale stock.
How Much Can You Get?
The amount block is recorded as eligibility_only because the dollar saving depends on the contract price and the live SRO duty schedule. The saving is best understood as three numerical bands:
- $0 to $600,000 dutiable value - full 100 percent waiver. The entire stamp duty figure is waived. On a $500,000 home, full duty is around $21,970 and the saving is $21,970. On a $600,000 home, full duty is around $31,070 and the saving is $31,070.
- $600,001 to $750,000 dutiable value - tapered concession. The concession reduces linearly across this band. A $625,000 home saves around $25,800; a $650,000 home saves around $20,500; a $675,000 home saves around $14,800; a $700,000 home saves around $9,700; a $725,000 home saves around $5,200; a $740,000 home saves around $2,000.
- $750,001 and above - zero benefit. The cap is binary at the top end. A $750,001 home receives no concession and pays the full duty (around $40,070). There is no extension above $750,000.
An audit recipe to verify your saving: first confirm both applicants are first-home buyers under the SRO test (no prior residential ownership in Australia after 1 July 2000); second take the dutiable value (purchase price plus any other dutiable consideration); third look up the standard duty for that value on the SRO general duty schedule; fourth apply the concession based on which band the value falls in; finally subtract the reduced duty from the standard duty to get the saving. Most online stamp duty calculators on the SRO website do this calculation automatically once you flag yourself as a first-home buyer.
The rule defines no multiplier, no reduces_if, and no date_windows. The concession does not stack with the Pensioner Stamp Duty Concession on the same purchase - SRO requires the buyer to nominate the better path - but it does stack with the $10,000 FHOG when the home is brand-new.
Eligibility Conditions
The eligibility block is an all set, so every item must pass.
- Victoria location:
state = VIC. The land transfer must be in Victoria; interstate first-home concessions live under that state's revenue office (NSW has First Home Buyers Assistance Scheme, Queensland has the First Home Concession, etc., each with their own thresholds). - First-home buyer status:
first_home_buyer = true. Neither you nor your spouse can have previously owned a residential property in Australia after 1 July 2000, whether as a home or an investment. Property held purely as a passive investor (no occupancy) before 1 July 2000 is allowed as a narrow exception under the Duties Act.
Required fields for assessment: state, first_home_buyer. The rule does not test income, assets, or concession-card status.
Several practical gates sit on top of the YAML conditions and are picked up by the conveyancer when lodging the Digital Duties Form. First, at least one applicant must be aged 18 or over at settlement. Second, at least one applicant must be an Australian citizen or permanent resident; a partner on a temporary visa can still be on title but cannot anchor the citizenship test alone. Third, at least one applicant must occupy the home within 12 months of settlement and stay continuously for 12 months as their principal place of residence - failing either part of this two-stage occupancy test triggers a clawback. Fourth, the home cannot be acquired through a discretionary trust, although a fixed unit trust with first-home-buyer beneficiaries is sometimes acceptable.
How To Apply
Application metadata defines a single channel: solicitor. This rule is administered through your conveyancer or solicitor at settlement; there is no direct buyer-facing application form. The conveyancer lodges the Digital Duties Form on the SRO Duties Online system, ticks the First Home Buyer Duty Exemption box, attaches the supporting evidence, and the system calculates the reduced duty automatically.
Evidence requirements are explicitly listed in the rule and should be prepared in advance for your conveyancer:
- Contract of sale - signed and dated, showing the purchase price and the property description
- Identity documents - proof of name, date of birth, citizenship or permanent residency, and current residential address for every applicant
The First Home Owner declaration form (signed at settlement) is also required. This is the same declaration that supports FHOG on a new build, so the conveyancer typically prepares one form covering both rules.
Two practical tips help. First, raise the concession with your conveyancer at the contract review stage - well before settlement. Some conveyancers default to the standard duty calculation and only retro-apply the concession when the buyer asks; making the FHB status clear upfront avoids the awkward refund-after-settlement path. Second, if your dutiable value is borderline above $600,000 (say $605,000 to $620,000), check whether any non-essential adjustments can be excluded from the dutiable value calculation. Things like adjustments for council rates paid in advance can sometimes lift the dutiable figure across a threshold.
Read the official SRO Victoria First Home Buyer Duty Exemption page
Rule-Based Scenarios
Scenario 1: Established cottage at $580,000 in Northcote - full $24,070 duty waived
Giulia, 28, signs a contract for a 1920s Californian bungalow in Northcote at $580,000 in March 2026. She is a first-home buyer, Australian citizen, and intends to live in the cottage. Because the dutiable value ($580,000) sits below the $600,000 full-waiver threshold, SRO waives the entire $24,070 of stamp duty that would otherwise have applied. FHOG fails because the home is not new, but the Duty Exemption alone delivers the full saving. Total benefit: about $24,070, all delivered at settlement as reduced duty rather than a cash payment.
Scenario 2: New townhouse at $670,000 in Footscray - $14,800 tapered duty saving plus $10,000 FHOG
Stavros, 32, contracts for a brand-new three-bedroom townhouse in Footscray at $670,000. He is a first-home buyer Australian citizen. Because the price sits in the $600,000-$750,000 taper band, the full duty (around $35,000) is reduced to about $20,200 - a saving of roughly $14,800. Because the home is also brand-new, FHOG stacks on top: another $10,000 cash. Combined benefit: about $24,800. He saves about as much as if the home had been an established $580,000 cottage, just split across two rules.
Scenario 3: New house-and-land package at $580,000 in Tarneit - $30,000 duty plus $10,000 FHOG
Manoj, 29, an IT worker, and his wife sign a house-and-land package in Tarneit at a total dutiable value of $580,000 (land $295,000 plus build $285,000). Both are first-home buyers and Australian citizens. Because the dutiable value sits below the $600,000 full-waiver threshold, the entire stamp duty (around $24,070 on $580,000) is waived. Because the home is also brand-new, FHOG stacks: another $10,000 cash. Combined benefit at settlement: about $34,070 of cash and tax relief on a $580,000 home - one of the strongest first-home-buyer combinations available anywhere in Australia.
Scenario 4: $760,000 unit blocked by the $750,000 cap
Mai, 34, a single mother contracts for a new two-bedroom apartment in Southbank at $760,000. She is a first-home buyer purchasing a brand-new dwelling, so the new-versus-resale gate passes for FHOG. But the dutiable value exceeds $750,000, so both the FHOG cap and the Duty Exemption cap fail in tandem. Mai pays full duty (around $40,800) and receives no FHOG cash. The $10,000 below the cap on a $750,000 home would have saved her over $40,000 of combined duty and FHOG; missing the cap by $10,000 is one of the most expensive boundary failures in the Victorian property tax system.
Common Mistakes
- Confusing FHOG ($10,000 cash for new homes only) with the First Home Buyer Duty Exemption (stamp duty waiver up to $600,000 on any home): these are two separate rules with different gates. FHOG fails on resale stock; the Duty Exemption accepts both new and established. A first-home buyer of a $580,000 Northcote established cottage receives only the Duty Exemption ($24,070 saved); a first-home buyer of a $580,000 Tarneit new build receives both ($34,070 combined).
- Treating Stamp Duty Concession (the Pensioner Concession) as the same thing as the First Home Buyer Duty Exemption: the Pensioner Concession is a separate rule for PCC, DVA, and CSHC holders buying a principal place of residence at any age - the FHB status is not required. SRO Victoria has three different stamp duty pathways (FHB Exemption, Pensioner Concession, and the off-the-plan Construction Concession), and a buyer must pick the best one for their situation.
- Buying a $620,000 established home and assuming FHOG saves something: first-home-buyer status is necessary but not sufficient for FHOG. The
purchasing_new_home = truecondition is the hard gate that excludes resale houses from FHOG even when every other field passes. The Duty Exemption is the resale-friendly companion - the $620,000 buyer above takes around $25,500 of tapered duty saving and zero FHOG. - Forgetting the 12-month occupancy obligation: at least one applicant must move in within 12 months of settlement and stay continuously for at least 12 months. Renting the home out in month 8 after moving in triggers a clawback - SRO recovers the duty that should have been paid plus possible interest. The 12-month move-in deadline and the 12-month residence period are separate clocks; both must be cleared.
- Assuming the tapered concession works above $750,000: the cap is a hard binary cut-off. A $750,001 home receives zero concession and pays the full duty (about $40,070). The taper between $600,000 and $750,000 is a linear decay; once the price ticks above $750,000 the entire concession disappears - it does not extend gradually.
- Assuming you can split title and claim twice: the first-home-buyer test runs at the household level. If your spouse or de facto partner has held an interest in residential property in Australia after 1 July 2000, neither of you can claim the Duty Exemption, even if you are listed alone on the new contract. SRO sees through arrangements that put only the eligible partner on title where there is shared occupancy or shared finance.
Related Victorian Property And Family Benefits
- VIC First Home Owner Grant - the $10,000 cash companion for new builds only. Stacks with the Duty Exemption on a brand-new home, which is why a $580,000 Tarneit new build is one of the most subsidised first-home purchases in Victoria. Established homes get only the Duty Exemption.
- VIC Stamp Duty Concession (Pensioner) - the alternative duty pathway for PCC, DVA Gold Card, and CSHC holders buying any principal place of residence (no FHB requirement). Cannot be combined with the First Home Buyer Duty Exemption on the same purchase - the buyer picks one.
- VIC Municipal Rates Concession - 50 percent off council rates capped at $266 a year for PCC and DVA Gold Card homeowners. Not relevant in the year of purchase if the buyer is not yet on a card, but takes effect once card eligibility starts.
- VIC Water and Sewerage Concession - 50 percent off water and sewerage charges capped at $372.10 a year for PCC and DVA Gold Card holders. Useful to remember for first-home buyers who are also pensioners; the bill arrives in the new owner's name from the day of settlement.
- VIC Fire Services Property Levy Concession - $50 a year off the Fire Services Property Levy on the council rates notice. Available to PCC and DVA Gold Card homeowners only.
- VIC RentAssist Bond Loan - the renter-stage counterpart for low-income tenants who cannot fund the bond themselves. First-home buyers often progress from RentAssist into the FHB Duty Exemption and FHOG several years apart, as their savings build through the rental phase into the deposit phase.
Frequently Asked Questions
How is the dutiable value calculated?
The dutiable value is the greater of the contract price or the SRO-determined unencumbered value of the property at the date of the contract. For arm's-length retail purchases this is the contract price. Adjustments for rates and water in advance are not normally added to the dutiable value, but property fittings or additional consideration (for example, a separate sale of furniture written into the contract) can be included.
What is the exact cut-off between full waiver and the taper?
$600,000. A dutiable value of exactly $600,000 receives the full 100 percent waiver (around $31,070 saved). A dutiable value of $600,001 falls into the tapered band, which begins at a saving close to the full waiver and decreases linearly to zero at $750,000.
Can I claim if I am buying with a parent who already owns a home?
Generally no, because the parent's prior ownership defeats the household first-home test. There are narrow exceptions - the parent must not be a beneficial owner of the new home (a guarantor-only role does not break the test) - so check with your conveyancer. The cleanest path is for the parent to act as a guarantor on the loan but not be on the title.
Does the exemption work on vacant land if I plan to build later?
Yes, provided the home will be completed and occupied within 12 months of settlement of the land. The dutiable value is the land price (typically much lower than $600,000), and the build itself is not subject to stamp duty. Most owner-builder first-home buyers therefore receive the full duty waiver on the land plus the $10,000 FHOG on completion.
What happens if I move out at month 9?
SRO Victoria reassesses the duty as if the concession had not applied and recovers the difference. Interest is charged from the original assessment date. If you moved in for 9 months and then had to leave because of an unforeseen change (for example a job interstate), SRO has a discretionary power to allow a partial occupancy in some cases, but the default outcome is full clawback.
Can I combine the Duty Exemption with FHOG on the same purchase?
Yes, when the home is brand-new (a new build, off-the-plan apartment, house-and-land package, or substantially renovated home). FHOG provides a $10,000 cash payment; the Duty Exemption reduces or eliminates the stamp duty. On a $580,000 new home both apply in full - $10,000 cash plus around $24,070 duty waived. On a $580,000 established home only the Duty Exemption applies.
Does the duty saving count as taxable income?
No. The Duty Exemption simply reduces the duty payable; it is not a cash payment and not assessable income. It does not affect Centrelink payments such as Family Tax Benefit or JobSeeker, and it does not need to be declared on your tax return.
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