If you are an eligible first-home buyer who buys a new or established home, you will receive a 50 per cent reduction of duty if:

  • Your settlement date is on or after 1 September 2014,
  • The property is your principal place of residence, and
  • The total house and land value is $600,000 or less

Are you eligible?

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

For example, your first home purchase may be an established/existing home (as opposed to a newly built home) with a contract date on or after 1 July 2013. The FHOG is no longer available for established/existing home purchased after that date. Even so, you will receive the first-home owner duty reduction if you meet the eligibility criteria for the FHOG.

You must also live in your property as your PPR for a continuous period of 12 months, commencing within 12 months of settlement, to maintain your eligibility for the duty reduction.

If you buy the property with someone else, at least one of you must satisfy this residency requirement. It is not necessary, however, for the same purchaser to occupy the home for the whole 12 months.

If a change in your circumstances means you cannot, or no longer, meet the residence requirement, you must notify us in writing as soon as possible.

Duty reduction values

The following information 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 reduction 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 the first-home buyer duty reduction and the pensioner exemption/concession, you can use our calculators to compare the amounts of duty you will pay after receiving the benefit of each.

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

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

Note: the first-home buyer duty reduction 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.

Apply for a duty reduction

Duty reductions since 2011

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

If you bought your property during this time and did not receive a duty reduction, you may be entitled to a duty refund. You need to apply for the refund within five years of making the overpayment.