Victoria First Home Buyer Duty Exemptions and Concessions

Victoria structures its land transfer duty relief for first home buyers as a set of value-based categories rather than a single flat discount, and understanding the shape of that structure matters more than memorising any particular figure, since the thresholds involved are reviewed periodically and can move. This guide explains the categories conceptually so you understand how the system is built, while pointing you to the State Revenue Office's own calculator to check the current position for your specific purchase.

The Underlying Structure: A Sliding Scale, Not a Cliff

Rather than qualifying or missing out entirely based on a single price point, Victoria's principal place of residence and first home buyer duty relief is built around a graduated structure. At the lower end of the value range, eligible buyers can receive a full exemption from duty. Moving up through a middle band of values, the exemption tapers into a partial concession, meaning you still receive relief but pay a reduced amount of duty rather than none at all. Above the top of that band, standard duty applies in full with no first home buyer relief. This sliding scale approach means a buyer just above a lower threshold is not suddenly liable for full duty, but instead moves gradually through the concession range.

The Full Exemption Category

The bottom category is a full exemption, available to eligible first home buyers purchasing a property below a set value, where no land transfer duty is payable at all. This is the strongest form of relief available under the scheme and applies to buyers at the more affordable end of the market. Because property values vary enormously between regional Victoria and inner Melbourne, whether a specific purchase falls into this category depends heavily on both the price and the location of the property, which is worth checking early rather than assuming based on general expectations about the local market.

The Sliding Scale Concession Category

Above the full exemption threshold sits a wider band where a concession, rather than a full exemption, applies. Within this band, the amount of duty payable increases gradually as the purchase price rises, rather than jumping straight to the full standard rate. Buyers in this category still receive meaningful relief compared with a purchase outside the scheme entirely, even though they will pay some duty. Because the concession scales with price, two purchases at different points within this band can attract noticeably different duty outcomes even though both technically qualify for relief.

Eligibility Beyond the Price of the Property

Value is only one part of qualifying. Generally, you and any co-purchasers must not have previously owned residential property in Australia, and you need to genuinely intend to live in the property as your home, usually for a minimum continuous period beginning within a set time after settlement. Joint purchases are typically assessed together, so a partner or family member who already owns property elsewhere can affect the whole application even where you personally have never owned a home. This is a common trap worth raising directly with your conveyancer before you sign anything, particularly if you are buying with someone whose property history you are not entirely certain about.

New Homes, Established Homes and Vacant Land

The scheme generally covers new homes, established homes and vacant land purchased with a genuine intention to build, though the specific conditions attached to each category differ. Vacant land purchases usually come with an expectation that construction will begin and be completed within a defined timeframe, and falling outside that window can affect your entitlement to relief that was assessed at the time of purchase. If you are buying through a off-the-plan purchase, this concession can interact with the separate off-the-plan duty concession, and understanding how the two combine is worth discussing with your conveyancer rather than assuming they simply stack in a straightforward way.

How the Concession Is Actually Applied

The concession or exemption is generally applied at the point your land transfer duty is assessed, lodged by your conveyancer or solicitor as part of settlement rather than claimed separately afterward. Supporting evidence typically includes proof of identity, residency or citizenship status, and a signed declaration that you meet the first home buyer criteria. Getting this right the first time matters, since an incorrectly assessed concession can be revisited later, potentially resulting in additional duty becoming payable if it turns out the eligibility criteria were not actually satisfied at the time.

Why You Should Check Current Thresholds Directly

Because the exact value thresholds separating full exemption, partial concession and no relief are reviewed periodically, relying on a figure you read somewhere else, or that applied to a friend's purchase in an earlier year, is a genuine risk. The State Revenue Office's first home buyer duty exemption and concession page sets out the current position and includes a calculator that lets you check where a specific purchase price sits within the structure described above. This article is general information rather than tax advice, and confirming your own position before you make an offer avoids relying on outdated figures.

Getting the Right Advice Before You Buy

A conveyancer experienced with first home buyer conveyancing across Victoria can check where your intended purchase sits within this structure, confirm your eligibility against the ownership and residency criteria, and manage the concession application as part of your settlement. Whether you are buying in Melbourne or regional Victoria, raising this with a conveyancer while you are still house hunting, rather than after you have already made an offer, gives you time to plan around whichever category your purchase falls into.