First home buyers in Victoria can save up to $39,000 in stamp duty through the First Home Buyer (FHB) Stamp Duty Exemption or Concession. This is separate from the First Home Owner Grant (FHOG) — the exemption applies to most established and new homes under price thresholds, while the FHOG is a $10,000 cash payment for new builds only. Most first home buyers qualify for one or the other; some qualify for both.
This guide covers the FHB Stamp Duty Exemption and Concession rules, the price thresholds, eligibility requirements, and how the exemption interacts with the FHOG.
The exemption (full waiver) and concession (partial waiver)
| Property dutiable value | Type | Stamp duty payable |
|---|---|---|
| Up to $600,000 | Full exemption | $0 |
| $600,001 – $750,000 | Sliding-scale concession | Reduced |
| $750,001+ | No concession | Full standard rate |
For a property at exactly $600,000, the full standard stamp duty is approximately $31,070. The first home buyer pays $0 — saving $31,070. At $750,000, standard duty is approximately $40,070; the first home buyer pays approximately $20,000 (about half). Above $750,000, no concession applies.
Eligibility — who qualifies
Buyer requirements
- At least one buyer must be a natural person (not a company or trust)
- At least 18 years old
- Australian citizen or permanent resident
- Has not previously owned residential property in Australia
- Has not received the FHB stamp duty concession or exemption before
Property requirements
- Located in Victoria
- Dutiable value of $750,000 or less (the contract price typically)
- Buyer must occupy as principal place of residence (PPR) for at least 12 months, starting within 12 months of settlement
- Established or new dwelling — both eligible
- Vacant land for residential building — eligible if the build is completed and occupation begins within timelines
The 12-month residence rule — the most-tripped-on requirement
You must move into the property as your principal place of residence within 12 months of settlement, AND remain in residence for at least 12 continuous months. Failure to do this means:
- The exemption / concession is clawed back
- You owe the full stamp duty (potentially $30,000+)
- Penalty interest may apply (8% pa)
Common scenarios that trigger clawback:
- Bought as a first home but rented out from settlement
- Moved in but moved out before 12 months
- Couple separated before completing 12 months
- Job relocation forced move out under 12 months
Limited exemptions to the residence rule exist — death, end of relationship, financial hardship — but evidence is required. Apply to the SRO if circumstances change.
FHB Stamp Duty Concession vs First Home Owner Grant — they’re different
| Aspect | FHB Stamp Duty Exemption/Concession | First Home Owner Grant (FHOG) |
|---|---|---|
| What it is | Stamp duty waiver | $10,000 cash grant |
| Eligible properties | New + established | New homes only |
| Price threshold | Under $750k | Under $750k |
| Maximum saving | ~$40,070 (at $750k) | $10,000 |
| Application | Via conveyancer at settlement | SRO online application |
| Stackable with each other | Yes — use both for a new home under $750k | Yes — use both for a new home under $750k |
Maximum benefit — combining schemes
For a new home under $600,000, a first home buyer could potentially receive:
- FHB Stamp Duty Exemption: $0 stamp duty (saving up to $31,000)
- First Home Owner Grant: $10,000 cash
- Vic Homebuyer Fund (eligible): 25% government equity
- Federal Home Guarantee: deposit guarantee, no LMI (saving $20,000+)
Total potential combined benefit: $60,000+ on a $600,000 first home purchase. Plan eligibility before bidding.
Application mechanics
- Confirm eligibility before contract. If you buy a property over $750,000, you forfeit the entire concession even if you would have qualified at lower price.
- Complete the SRO declaration. Your conveyancer submits this with the duty payment at settlement.
- Document principal residence intent. Keep utility connection records, address registration with employer and government, and similar evidence.
- Comply with the 12-month rule. Move in within 12 months and remain for 12+ months continuous.
- Notify SRO of changes. If circumstances change, notify before clawback occurs.
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