Stamp Duty Exemptions Australia 2026

What is the difference between a stamp duty exemption and a concession?

A stamp duty exemption means you pay exactly $0 in transfer duty. A concession means you pay a heavily discounted, sliding-scale rate that reduces your liability before phasing out entirely at an upper limit. Both apply only to eligible first home buyers purchasing within the relevant thresholds.

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Stamp duty — officially called transfer duty in most states — is a state government tax charged when property ownership changes hands. The amount is calculated on a sliding scale based on the purchase price or the market value of the property, whichever is higher. It is one of the largest upfront costs in a property purchase and is paid at settlement through your conveyancer.

The practical difference between an exemption and a concession matters significantly when you are near a threshold. In Victoria, a first home buyer purchasing at $580,000 pays zero duty — full exemption. The same buyer at $680,000 pays a partial amount under the concession. At $760,000, they pay full duty. Knowing exactly where each boundary sits before you make an offer is essential.

Do first home buyers pay stamp duty on established houses?

In most states, no — up to a threshold. NSW, VIC, QLD, WA, TAS, and the ACT all provide full or partial stamp duty exemptions on established homes for eligible first home buyers. South Australia does not provide an exemption on established properties. The NT applies a 50% flat discount on all purchases up to $650,000.

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The confusion arises because some state schemes — particularly the cash FHOG grant — apply to new homes only. The stamp duty exemptions operate separately and, in most states, cover both new and established properties equally. In NSW for example, a $700,000 established unit and a $700,000 new townhouse both qualify for the same full stamp duty exemption.

Apartments, townhouses, and units are treated the same as houses for stamp duty exemption purposes in every state. The property type does not affect eligibility — the purchase price does.

First home buyer stamp duty exemption thresholds by state 2026

Thresholds vary significantly by state. NSW offers the broadest coverage at $800,000 for both new and established homes. The ACT offers the highest single threshold at $1,020,000 but applies an income test. Queensland removed the price cap entirely for new homes from May 2025. WA increased its threshold to $600,000 in May 2026.

Thresholds are current as at May 2026 and subject to change with state budgets. Always confirm with your broker or state revenue office before exchanging contracts.

Can I get a stamp duty exemption if I buy an investment property first?

No. All Australian state stamp duty exemptions for first home buyers are strictly reserved for owner-occupiers. If you purchase an investment property before buying your primary residence — even if you have never lived in a property you have owned — you lose first home buyer status permanently and are ineligible for stamp duty concessions on any future purchase.

• ✗Purchasing an investment property first permanently removes your first home buyer status
• ✗Renting out the property after purchase also violates residency requirements in most states
• ✓You must intend to occupy the property as your primary residence within 12 months of settlement
• ✓Continuous occupation requirements: 12 months in NSW and VIC, 6 months in QLD, WA, SA, and NT

Investors pay full standard transfer duty rates with no concessions available. If you are weighing up whether to buy an investment property first or your primary residence, understand that the stamp duty exemption is a one-time entitlement and cannot be deferred.

What happens to my stamp duty exemption if my partner has owned a home before?

Yes, your partner’s prior ownership disqualifies the purchase. If your spouse or de facto partner has ever held a legal interest in an Australian residential property, you are ineligible for first home buyer stamp duty relief as a couple. State revenue offices assess applications based on the combined household unit — not the individual purchaser.

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• ✗If your partner has ever owned residential property in Australia, you cannot claim as a couple
• ✗This applies even if you are purchasing the property solely in your own name
• ✓If your partner has never owned property, you can apply jointly and both must meet all eligibility criteria
• ✓If you apply solely in your name without including your partner on title, some states may still assess your partner’s history — confirm with your conveyancer before proceeding

This is one of the most common eligibility issues that catches buyers off guard. Confirm both parties’ property ownership history with your broker before making any offers, not after you have found a property.

Does inheriting a property disqualify me from first home buyer stamp duty exemptions?

Yes, in most cases. Inheriting a residential property — even a minor partial share via a deceased estate — typically counts as prior property ownership and removes your first home buyer status. If your name has appeared on a residential property title in Australia, you are generally ineligible.

• ✗Inheriting any share of a residential property in Australia typically disqualifies you
• ✓Prior ownership of commercial, industrial, or rural land generally does not affect eligibility
• ✓Overseas property ownership does not affect eligibility in most states
• ✓Some states have hardship provisions — contact your state revenue office if you believe your inherited interest was minor or involuntary

Rules vary slightly between states. If you have inherited a property interest at any point and are unsure of your eligibility, confirm with your conveyancer and your state revenue office before applying for any concession. An incorrect claim can result in full duty being reassessed plus penalties.

Can I stack stamp duty exemptions with the First Home Guarantee?

Yes. State stamp duty exemptions and the federal First Home Guarantee are completely separate schemes that stack directly on top of each other. The First Home Guarantee eliminates LMI. Your state’s stamp duty exemption separately eliminates or reduces transfer duty at settlement. Combined with a state FHOG cash grant, the total benefit package can exceed $70,000 on a qualifying purchase.

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Grants are applied by your conveyancer at settlement. The First Home Guarantee is arranged through your participating lender as part of the loan application. Your broker coordinates all three. The key is confirming your eligibility for every scheme before you start making offers.

Can stamp duty be added to my home loan?

Yes, some lenders allow stamp duty to be capitalised into the loan — but this increases your loan-to-value ratio and may push you above the 80% LVR threshold, triggering Lenders Mortgage Insurance. If you are a first home buyer purchasing within your state’s exemption threshold, stamp duty does not apply and this question becomes irrelevant.

• ✗Adding stamp duty to the loan increases your LVR and may trigger LMI
• ✗Not all lenders allow capitalisation of stamp duty — policy varies
• ✓If you are eligible for a full exemption, stamp duty is $0 and capitalisation is irrelevant
• ✓The better solution is structuring the purchase within your state’s exemption threshold where possible

When do you pay stamp duty in Australia?

Stamp duty is paid at settlement, typically within 30 days of the contract date. Your conveyancer or solicitor calculates the amount, applies any eligible exemptions or concessions, and lodges payment to the relevant state revenue office as part of the settlement process. You do not pay it separately or in advance.

For off-the-plan purchases, stamp duty is typically assessed at the contract date based on the property’s dutiable value at that time — not the completed value at settlement. In Victoria, this means duty is calculated on the land value component only at contract exchange, which can significantly reduce the amount payable on apartment purchases.

Other stamp duty exemptions that apply to all buyers

Several stamp duty exemptions apply to all buyers — not just first home buyers. These include spousal and de facto transfers of a principal residence, property transfers following separation or divorce under a court order or binding financial agreement, deceased estate transfers, and in some states pensioner concessions. Each has specific eligibility criteria and varies by state.