Stamp duty is one of the largest upfront costs when purchasing property in Australia, often adding tens of thousands of dollars to the purchase price. For first home buyers already stretching to save a deposit, this additional cost can feel like a roadblock. Fortunately, every Australian state and territory offers first home buyer concessions, exemptions, or grants that can significantly reduce or even eliminate stamp duty.
This guide covers the stamp duty landscape across Australia for FY 2025-26, explains who qualifies for concessions, and shows you how to estimate your costs before you buy.
What Is Stamp Duty?
Stamp duty (also called transfer duty) is a state tax imposed on the purchase of property. The amount you pay depends on the property value, your state or territory, and whether you qualify for any concessions or exemptions. It is a one-off cost payable at settlement, and it must be paid in full before the property transfer is registered in your name.
For first home buyers, stamp duty can be the difference between being able to afford a home or being locked out of the market. A typical apartment in Sydney valued at $800,000 could attract over $31,000 in stamp duty without concessions — that's months of extra saving on top of your deposit.
State-by-State First Home Buyer Concessions (FY 2025-26)
Each state administers its own stamp duty regime. Here is a summary of the key concessions available for first home buyers.
New South Wales
First home buyers purchasing existing homes valued up to $800,000 receive a full exemption from stamp duty. A partial concession applies for homes valued between $800,000 and $1,000,000. For new homes (off-the-plan or newly built), the thresholds are higher, with full exemptions available up to $1,000,000.
The NSW Government provides this benefit automatically when you apply for assessment — no separate application is needed beyond declaring your first home buyer status.
Victoria
First home buyers in Victoria receive a full stamp duty exemption for properties valued up to $600,000 and a concessional rate for properties between $600,001 and $750,000. The exemption is available for both established and new homes, provided you meet the eligibility criteria.
Victoria also offers the First Home Owner Grant (FHOG) of $10,000 for first home buyers purchasing or building a new home valued up to $750,000.
Queensland
Queensland provides a full stamp duty concession for first home buyers purchasing property valued up to $500,000. A concessional rate applies for properties between $500,001 and $550,000. The first home buyer concession can be used in conjunction with the Queensland First Home Owner Grant ($15,000 for new homes valued up to $750,000).
For vacant land, the thresholds are different — the concession applies for land valued up to $250,000, with the concession phasing out up to $260,000.
Western Australia
WA first home buyers receive a full stamp duty exemption for properties valued up to $430,000 (including vacant land up to $300,000). A sliding scale of concession applies for properties valued up to $500,000 (or $400,000 for land).
The WA First Home Owner Grant provides $10,000 for new homes valued up to $750,000.
South Australia
First home buyers receive a full stamp duty exemption for properties valued up to $650,000. This was increased significantly in recent years to improve housing affordability. SA no longer offers the First Home Owner Grant for established homes, but it remains available for new homes built in regional areas.
Tasmania, ACT, and Northern Territory
- Tasmania: 50% stamp duty concession for first home buyers on properties valued up to $600,000
- ACT: Full stamp duty exemption for first home buyers on properties valued up to $1,000,000 (for owner-occupiers)
- Northern Territory: Full stamp duty exemption for first home buyers on properties valued up to $650,000, plus the $10,000 HomeGrow grant for new homes
Eligibility Criteria
While each state sets its own rules, the common eligibility requirements for first home buyer concessions include:
- You must be an Australian citizen or permanent resident
- You must be at least 18 years of age
- You must not have previously owned property in Australia (or overseas, in some states)
- You must occupy the property as your principal place of residence for at least 6-12 months
- The property value must fall below the relevant threshold
- Some states have income caps (for example, VIC applies a household income cap for certain concessions)
How to Calculate Your Stamp Duty
Stamp duty is calculated on a sliding scale, with higher-value properties attracting higher rates. In NSW, for example, the rate for properties over $1,000,000 is $40,090 plus $5.50 for every $100 over $1,000,000 — meaning the duty on a $1.2 million property is approximately $51,090.
To estimate your costs:
- Identify the state where you are buying
- Determine the property purchase price
- Check whether you qualify for first home buyer concessions
- Apply the relevant state's duty rate to the dutiable value
The key insight for first home buyers: check the thresholds before you set your budget. A property priced just above the concession threshold can cost thousands more in duty, making it less affordable overall than a slightly cheaper home.
Conclusion
Stamp duty remains one of the biggest hurdles for first home buyers across Australia. The good news is that state governments offer generous concessions that can save you between $10,000 and $50,000 depending on where and what you buy. Understanding your state's specific thresholds is the first step in budgeting accurately for your purchase.
Before you start house hunting, run the numbers for your specific situation. The difference between a property at $799,000 and $801,000 in NSW could mean paying $0 vs $30,000+ in stamp duty.
Use the BizMetrixs Stamp Duty Calculator to estimate your exact costs for any state or territory, including applicable first home buyer concessions.