If you are an eligible first-home buyer who buys a new or established home, you will be exempt from paying duty if:

  • The dutiable value is $600,000 or less
  • Your contract date is on or after 1 July 2017,
  • At least one of the purchasers uses the property as their home and satisfies the residence requirement, and

If the dutiable value value is more than $600,000 but not more than $750,000, you will pay a concessionary amount of duty. The concession applies on a sliding scale. The closer the dutiable value is to $600,001, the greater the concession. 

You can calculate how much concessional duty you have to pay using our calculator.

Are you eligible?

If you satisfy the eligibility requirements for the First Home Owner Grant (FHOG), you will be entitled to the first-home buyer duty reduction. This is the case even if your circumstances prevent you from actually receiving the FHOG.

This could be, for example, because your first home purchase is an established/existing home (as opposed to a newly built home). The FHOG is not available for established/existing homes purchases.

Living in the property

You must live in your property as your principal place of residence for a continuous period of 12 months, commencing within 12 months of settlement, to maintain your eligibility for the duty exemption or concession.

If you buy the property with someone else, at least one of you must satisfy this residency requirement. 

If a change in your circumstances means the residence requirement cannot be satisfied, you must notify us in writing within 30 days of becoming aware of any circumstances that may result in the residence requirement not being complied with.

Common questions

Duty reduction prior to 1 July 2017

If you are an eligible first-home buyer who bought a new or established home prior to 1 July 2017, you will receive a 50 per cent reduction of duty if:

  • Your settlement date was on or after 1 September 2014,
  • At least one of the purchasers uses the property as their home and satisfies the residence requirement, and
  • The dutiable value is $600,000 or less

As with the exemption/concession, you must meet the eligibility requirements for the FHOG.

Here is a general description of the 50 per cent duty reduction applied to various property prices.

 
Value of property Duty payable (for a PPR) before reduction 50% reduction Duty payable after reduction

$200,000

$6370

$3185

$3185

$300,000

$11,370

$5685

$5685

$400,000

$16,370

$8185

$8185

$500,000

$21,970

$10,985

$10,985

$565,000

$28,970

$14,485

$14,485

$600,000

$31,070

$15,535

$15,535

Pensioner exemption or concession

You may qualify for both the first-home buyer duty exemption or concession and the pensioner exemption or concession but you cannot receive both in respect of the same transaction. You must elect to receive one or the other.

Which one should you apply for?

Assuming you are eligible for both, you can use our calculators to compare the amounts of duty you will pay after receiving the benefit of each. Remember, the first-home buyer duty exemption or concession is only available on the purchase of your first home. It is not available on subsequent home purchases. The pensioner exemption/concession is available to you only once, but the home you buy does not have to be your first home. It may be available for a subsequent home purchase.

Calculate how much duty you pay after receiving the benefit of the first-home buyer exemption/concession.

Calculate how much duty you pay after receiving the benefit of the pensioner exemption/concession.

Duty reductions from 2011 to 2014

Reductions in duty ranging from 20 to 40 per cent have been phased in since 2011 for eligible first-home buyers.

If you settled on your property on or after 1 July 2011 and before 1 September 2014 and did not receive a duty reduction, you may be entitled to a duty refund. You can apply for the refund up to five years after the date the duty as paid.