Learn more about stamp duty in your state

One of the major hurdles to buying property in Australia for first home buyers is the cost of stamp duty, which, depending on where you’re buying, often seems almost as much as the amount you’ll need to save for the deposit.

Stamp duty discounts for first home buyers

One of the major hurdles to buying property in Australia for first home buyers is the cost of stamp duty, which, depending on where you’re buying, often seems almost as much as the amount you’ll need to save for the deposit.Stamp duty – a tax on the sale or transfer of land – is invested into the economy by state and territory governments and used for things such as health, transport and roads, police, justice and emergency services.In Australia, it has increased along with house prices. These days, a first home buyer purchasing an established home in NSW for $800,000, will most likely need a 10% deposit of $80,000, plus an extra $31,768 for stamp duty, which is no drop in the ocean.uno’s stamp duty calculator enables users in any state to work out stamp duty by entering a number of variables.To make things easier for our customers, we’ve also linked our stamp duty calculator to our funds required calculator, so you can find out how much deposit you have left once stamp duty is accounted for, and how much you will need to borrow from your lender to pay for the house you’re interested in.The amount of stamp duty you’ll pay depends on a number of variables. Whether you’re purchasing a an investment property or a principal place of residence are all taken into account.Thankfully, a number of stamp duty concessions exist for first home buyers in different states, although you’ll have to meet eligibility criteria.

Stamp duty concessions and discounts state by state:

Stamp duty concessions for first home buyers in New South Wales

Thanks to the NSW government, first home buyers in NSW are exempt from paying stamp duty on new and existing homes valued at up to $650,000. Buyers of first homes used as a residential property and worth between $650,000 and $800,000 are eligible for stamp duty discounts of a few thousand dollars. For example, the purchase of a property valued at $750,000 in NSW by a first home buyer would receive a discount of $8,250 in stamp duty, making the total $20,990 rather than the $29,240 that would have to be paid by non-first home buyers.

Stamp duty concessions for first home buyers in Victoria

In Victoria, you may be eligible for the first home buyer duty exemption or concession if you purchased a home under a contract signed on or after 1 July 2017 and:

  • The dutiable value of the home is $600,000 or less – to receive the first home buyer duty exemption.For example, the stamp duty on a $500,000 property for a home buyer is $21,970, whereas for a first home buyer it is $0.
  • The dutiable value of the home is between $600,001 and $750,000 – to receive the first home buyer duty concession.The concession applies on a sliding scale: the higher the value of the property is to $600,001, the greater the concession.For a general home buyer purchasing a home valued at $650,000, the stamp duty would be $34,070, for example, whereas for a first home buyer the duty is reduced to $11,356.

Stamp duty concessions for first home buyers in the Australian Capital Territory

The ACT has what’s called the Home Buyer Concession Scheme (HBCS), where stamp duty is charged at a concessional rate. To claim the HBCS, the value of a new home must be more than $470,000 but less than $607,000. To be eligible, vacant land for building a new home must be purchased for more than $280,000 but less than $323,300.

Stamp duty in the Northern Territory

The Northern Territory Government has introduced increased stamp duty assistance for first home buyers who purchase an established home in the Northern Territory up to the value of $650,000.The scheme provides a stamp duty discount of $23,928 for first home buyers of an established home, plus a further $10,000 renovation grant of which $2000 can be spent on household goods.

Stamp duty concessions for first home buyers in Western Australia

In Western Australia, when a home buyer is eligible for the First Home Owner Grant, a concessional rate of transfer duty will apply if the value of the property is below certain thresholds: less than $530,000 for the value of a home, or for the purchase of vacant land where the land value does not exceed $400,000.

Stamp duty concessions for first home buyers in South Australia

For first home buyers in South Australia, an off-the-plan stamp duty concession of up to $21,330 (capped at stamp duty payable on a $500,000 apartment) is available for those purchasing a new or substantially refurbished apartment up until 30 June 2018. The concession is in addition to the FHOG.A partial stamp duty concession is available for off-the-plan apartments with contracts entered into between 1 July 2014 and 30 June 2018 inclusive.

Stamp duty concessions for first home buyers in Queensland

If you’re purchasing property as a first home buyer in Queensland, you don’t have to pay transfer duty on homes valued at $500,000 or less.

Stamp duty concessions for first home buyers in Tasmania

In Tasmania, there are currently no exemptions on stamp duty for first home buyers.Please note these figures are subject to change and usually come with deadlines, so be sure to check the revenue site in your state (listed above) for updates.

Can I borrow to pay for stamp duty as part of my home loan?

While you can’t borrow for stamp duty as part of your home loan, in order to pay for it you can effectively subtract the amount from your deposit and borrow more from your lender to accommodate the loss.Either way, when planning to buy property, you should account for at least 10% of the value of the property you wish to buy to put towards a deposit (some lenders may only require 5%), stamp duty costs and other fees. UNO advisers are here to run you through all the fees and costs you’ll need to consider before buying property.


Book Call Now

UNO home loans

Need help with your home loan?

UNO Brokers are available night and day for a quick review or your situation and bring expertise that will support better decision making that will save you time and money. Book in a quick call when it suits your busy schedule

Get Started

Related Articles

TESTIMONIALS

What our customers are saying

John Cahill
March 7, 2024
Scott Wilkinson was my broker last year when I sought finance for a new property investment and refinance for my property port folio. He was an absolute delight to work with. He was always professional, on time and always available to talk at a moment's notice to discuss my credit options and give well considered advice; usually this was very much after-hours due to my work commitments during the day. He was always happy to talk. I had not used a mortgage broker in a long time opting to do the re-financing myself. This was primarily due to disappointing experiences I'd had with mortgage brokers in the past. However with the increasing complex nature of dealing with credit providers, I could see that I needed a good advocate to act on my behalf for this particular refinance. In all honesty I did not hold much hope that in the current credit environment I would be able to secure the finance I required for the new property investment I was wishing to secure. Scott found a way however and was able to secure the finance along with the refinance of my portfolio. I have since referred friends to Scott and I know they have been very happy with his work. He is ideal for property investors who have busy day-jobs and need someone who understands property investment strategy and is able to tailor credit advice and options to their needs. Scott provides this advice and information in a way that is clear and concise. He kept me up to date continually during the application process. He made what could have been a very stressful and frustrating process easy and straightforward. I could not recommend Scott and the team at UNO Home Loans more highly. They are all a delight.
Read more
Sally Mackenzie
February 19, 2024
We chose Uno Home Loans from their impressive web site knowing we were going to find it hard, on many fronts, to qualify for a home loan. We were incredibly fortunate to be assigned Mike Parsons as right from the get-go, despite the complexities, he hit the ground running for us. He was incredibly knowledgeable, with years of experience but what was immediately apparent and impressive was that he was totally invested in getting us over the line, doing absolutely everything possible, including working around the clock. Despite it being a relatively small loan in the order of things, Mike never missed a beat, getting docs ready, following up and answering every request from the proposed funder immediately. He kept us informed on progress the minute anything happened, and again if anything needed to be done, he was right on it. In short, we highly recommend Uno, and Mike, knowing what a remarkable job he did, over many weeks, to get us our loan. He got us a great deal, with far better rates than we expected, so we couldn't be happier. In fact, without doubt, you'd be hard pressed to find a more personable, sharp, hard working, dedicated professional who clearly prides himself on getting his customers standout results.
Read more
Rod
February 13, 2024
Scott and his team were just A-mazing. We felt supported through the whole process with the greatest quality and care. Every question answered right in time, or even before we asked. The process was smooth and we got the best outcomes we could have wished for.
Read more
Angela Biddle
February 6, 2024
Our mortgage recently came up for renewal, and with interest rates skyrocketing we were looking for ways to minimise the impact. Michael and his team were proactive and attentive. Michael spent time with us to understand our circumstances. He found mortgage options that worked with our current financial situation and longer investment plans. He presented clear options, providing guidance where needed. He and his team were helpful and responsive - streamlining the process and keeping us updated through the negotiations. In the end, Uno did the heavy lifting and secured a significantly better rate than our current bank offered, all with friendly, personal service. We would highly recommend UNO Home Loans.
Read more
Fotis Bikas
January 15, 2024
I cannot help but congratulate Scott Wilkinson of UNO Home Loans for being an absolute credit to both his company and the entire loans industry. Scott is a truly rare gem of a broker in that he will not only go the extra mile to achieve for each customer the very best deal, but his knowledge of all and sundry within the industry is unsurpassed (you will see what I mean if you speak to him). Additionally, Scott has a clear passion for imparting his wealth of information with each customer, whereas the conversation with most other brokers would simply be over if they could not get you the best deal. For me, Scott Wilkinson of UNO Home Loans stands head and shoulders above the competition and I feel privileged to benefit both from his expertise and professionalism whenever it is time for a refinance or new loan.
Read more
Tomoharu Matsui
January 11, 2024
Michael Parsons helped me a lot when it's difficult to establish my capabilities in loan.
Read more
Gillian Kearon
January 9, 2024
I highly recommend Mike Parsons as a mortgage broker. I couldn't fault the service provided by UNO. Thanks Mike!
Read more
Taner T
December 20, 2023
Thank you Eren Tan for the amazing service and support. Our Loan was a little tricky and complex for other lenders but Eren managed to get it over the line in record time. His professionalism and dedication to our needs was exceptional. If you need a Loan no matter how complex your situation, make sure you contact Eren at UNO Home Loans.
Read more
Karaipu Brown
December 20, 2023
Buying & selling a house at the same time is very stressful but Scott Wilkinson from UNO home loans made sure we knew what was happening & took most of the stress away. He always kept us up to date and if we had a concern or wanted clarification on something we were able to call him, if he didn’t know the answer straight away he will find out and contact us back.. now we are enjoying our new house and turning it into a home :)
Read more
Chris Anderson
December 18, 2023
Just completed my first loan with UNO which was so much easier than with other other brokers I have used in the past. Our broker MIKE PARSONS always had time for me and broke things down for me in the simplest of terms and was very patient with my silly questions and my constant changing of plans. I wish I had used them in the past as I wouldn't be in the situation I'm in now. Can't recommend them highly enough. Thanks UNO and Thanks MIKE 😊
Read more
Stephen Broomfield
December 11, 2023
To be able to recommend Scott Wilkinson for your mortgage broker was a privilege. We had deals fall through but Scott supported, guided and stuck with us, proper partnership. The whole team at UNO helped us and supported us right through to after settlement. Made sure everything was correct and how we are progressing. Communication was amazing and straightforward and easy to understand. Transparent. We can not Recommend Scott and the team as Uno high enough. Use UNO with confidence.
Read more
Tarek Hussain
December 6, 2023
Can't thank Amy enough for her hard work, dedication and determination on getting multiple loans completed for me. I wouldn't hesitate in recommending Amy and the Uno team to any of my associates. Will definitely be back in the near future!
Read more