What is the first home buyer stamp duty exemption in VIC 2026?
The first home buyer stamp duty exemption in Victoria allows eligible buyers to pay no stamp duty on properties valued up to $600,000, and a concession for properties between $600,001 and $750,000. These thresholds are current and subject to change by 2026.
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How it works in practice
First Home Buyer Duty Exemption in Victoria
In Victoria, eligible first home buyers can receive a full exemption from stamp duty (also known as land transfer duty) when purchasing a new or established home valued up to $600,000. For properties valued between $600,001 and $750,000, a concessional rate of stamp duty applies, meaning you pay a reduced amount.
Eligibility Criteria
To qualify for this exemption or concession, specific criteria must be met. You must be at least 18 years old, be an Australian citizen or permanent resident, and never have owned residential property in Australia before. Additionally, you must intend to live in the property as your principal place of residence for at least 12 continuous months, starting within 12 months of settlement.
Implications for 2026
While the current thresholds are defined, government policies and property values are subject to review and change. For purchases in 2026, it is crucial to verify the prevailing rules closer to the date, as thresholds and eligibility criteria may be adjusted. Always consult the official State Revenue Office Victoria website for the most up-to-date information.
Important exceptions
The exemption or concession will not apply if the property value exceeds the specified thresholds. If you or your spouse have previously owned residential property in Australia, you are ineligible. You must also occupy the home as your principal place of residence for at least 12 months within the first year of ownership; failure to do so may result in the clawback of the exemption. The exemption also does not apply to investment properties or commercial properties.
What you should do now
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Check the latest eligibility criteria and property value thresholds on the State Revenue Office Victoria website closer to your purchase date.
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Ensure you meet all personal criteria, such as age, residency status, and not having previously owned property.
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Budget for properties within the exemption or concession limits to maximise your savings on stamp duty.
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Plan to move into the purchased property within 12 months of settlement and reside there for at least 12 continuous months.
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Seek advice from a licensed conveyancer or solicitor to assist with the application process and ensure compliance.
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