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August 17, 2021

Stamp Duty Concessions

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State
Amount
Conditions
ACT
n/a
From July 1 2019, the FHOG ACT has been replaced with exemptions on stamp duty(see below section 1.5).
NSW
$10,000
To be eligible, your first home must have a total value below $600,000, and beeither newly constructed or ‘substantially renovated’*. If you plan to build a newhome from scratch, you can still be eligible as long as your land plus the home youbuild have a combined value of less than $750,000.
NT
$10,000
Your income and the price of your home don’t affect the FHOG NT, and the grant isavailable if you buy or build a new house, apartment, duplex or townhouse.
QLD
$15,000
To be eligible, you need to buy a brand new home or build a home from scratch withthe total value (including the land) below $750,000. You may also be eligible if youbuy off the plan or an established home that’s been substantially renovated*.
SA
$15,000
You are only eligible when you buy or build a brand new home, the grant is notavailable if you buy an established home. You can choose from a house,apartment, townhouse or villa, but you will only be able to claim the FHOG SAif you pay below $575,000 for your home.
TAS
$20,000
You are only eligible when you buy or build a brand new home, the grant is notavailable if you buy an established home. The FHOG in Tasmania is currentlyavailable until 30 June 2022. Off the plan purchases are also eligible. In Tasmaniathere is no limit on the purchase price and the grant is not means tested.
VIC
$10,000
The FHOG is available if you buy a newly built home or if you choose to build a homefrom scratch in Victoria. Your first home can be a house, townhouse, apartment, or unitbut it must be valued at $750,000 or less, and it must be a new home – being sold asa home for the first time, and less than five years old
WA
$10,000
You are only eligible when you buy or build a brand new home, the grant is notavailable if you buy an established home. However, a home that has beensubstantially renovated* may be considered a new home. There are limits on whatyou can pay for your first home to be eligible. If you’re located south of the 26thparallel, which basically covers all the Perth metropolitan area, you can claim theFHOG WA if your new home is worth up to $750,000 – this includes the value of theland plus buildings. If you buy or build a home north of the 26th parallel, the propertymust be valued up to or below $1 million.

*Substantially Renovated means all, or most, of the building, has been removed or replaced. As a guide,substantial renovations include replacing or altering foundations or replacing or altering floors.

Effects on stamp duty.

Stamp duty is one of the upfront costs that apply when you buy a home or vacant land. It is a state government tax and therefore the rates of duty differ. The amount you will pay for stamp duty will depend on where you are buying, and how much you pay for your home or vacant land.
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As stamp duty is a state government tax, the concessions on stamp duty will differ from state to state and can be provided with and without the FHOG in most cases:

ACT

From 1 July 2019, first home buyers in ACT will no longer have to pay stamp duty on their properties. This concession is applicable to all properties in ACT, including vacant residential land and both new and established homes at any price. As this is still to aid first home buyers, to be eligible at least one buyer must live in the home for at least 12 months, starting within 12 months of settlement or completion of construction.
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To be eligible, first homeowners in the ACT must have a household income below $160,000. This number increases up to $176,000 depending on the number of children you may have. As this is a household income measurement, your partner’s income must be included, even if they won’t be an owner of the home.

NSW

Under the First Home Buyer Assistance Scheme (FHBAS), first home buyers will not have to pay stamp duty on new and existing homes that are valued at less than $650,000 and on vacant land that is valued less than $350,000.
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Additionally, a concessional rate of duty will apply to homes valued more than $650,000 but less than $800,000 and vacant blocks of land valued more than $350,000 and less than $450,000
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NT

The Northern Territory’s First Home Owner discount allows homeowners to save up to a maximum of $18,601 on thecost of stamp duty.

This is available to both new and established homes that are valued under $650,000
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QLD

If you’re buying vacant land to build your first home, you pay zero stamp duty as long as you pay $400,000 or less for your block. That’s a saving of $5,250 on the regular cost of stamp duty.
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If your first home is valued up to $500,000, you pay zero stamp duty. That’s a saving of $8,750, which is the maximum stamp duty rebate available to first home buyers in QLD.
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Additionally, savings on stamp duty may still be available if you pay between $500,000 and $550,000 for your first home. As a guide, if your first home is worth $505,000, you pay stamp duty of $1,050, a saving of $7,875.

These savings cut out altogether if your first home costs $550,000 or more. On a property valued at $550,000, for example, the stamp duty would work out to be $10,600.

SA & TAS
There are currently no specific stamp duty concessions available for first home buyers in South Australia and Tasmania. However, if you are a first home buyer that is ineligible for the FHOG in Tasmania you may be entitled to duty concessions (see below section 5.3)

VIC

First home owners in Victoria don’t pay stamp duty at all on their first home as long as the property is valued below $600,000 and you meet the eligibility criteria. That’s a savings of up to $31,000!
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You may still be eligible for savings on stamp duty if you pay between $600,000 and $750,000 for your first home if you meet the eligibility criteria.
The stamp duty concessions available in Victoria apply to both established and new homes.

WA

If you buy vacant land to build your first home, you’re exempt from paying stamp duty as long as you don’t pay more than $300,000. If you pay between $300,000 and $400,000 you will be entitled to a reduced rate of duty.
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If you buy a home costing up to $430,000, no stamp duty is payable at all. If the value of your home is between $430,000 and $530,000, you’ll be entitled to a reduced rate of stamp duty.
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There are no additional concessions for homes valued above $530,000 and land valued above $400,000, however, the stamp duty concessions in WA are applicable to both new and established homes.

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Other Grants

Family Home Guarantee

This new scheme announced in the 2021-22 Federalbudget allows single parents to be able to get a home loan with a 2% deposit, as the government’s scheme aims to support single parents with dependants (who are predominantly women) to enter or re-enter the housing market. Commencing on 1 July 2021, the Family Home Guarantee scheme will provide 10,000 places to eligible single parents over four financial years to 30 June 2025. Similarly, to the 5% deposit scheme, the family home guarantee is administered by the NFHIC and allows single parents to purchase an existing home or build a new property with a low deposit while avoiding LMI. Although this grant is not specifically for first home buyers, eligible first home buyers are able to apply.

References

See the complete list of state based references and resources for you to explore. Each state has their own individual requirements. However, thats why we are here to assist you on your journey of homes ownership.

Super Saver

The First Home Super Saver Scheme (FHSSS) helps Australians boost their savings for a first home by allowing them to build a deposit inside superannuation, giving them a tax cut. The FHSSS applies to voluntary superannuation contributions made from 1 July 2017. These contributions, along with deemed earnings, can be withdrawn for a home deposit from 1 July 2018. For most people, the FHSSS could boost the savings they can put towards a deposit by at least 30 per cent compared with saving through a standard deposit account as amounts saved through the scheme will only be taxed at 15% instead of your marginal tax rate, this can help you purchase your first home sooner.

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