First home buyer duty exemption, concession or reduction-When you buy your first home after 1 July 2017, you may be eligible for an exemption or concession from duty.
If you entered into a contract to buy your first home before 1 July 2017, you may be eligible for the first home buyer duty reduction. This duty assistance is available to eligible first home buyers, in addition to the First Home Owner Grant.
Temporary exemptions and concessionsThere are some temporary duty exemptions and concessions that may be available if you are a first home buyer, even if you don’t qualify for the first home buyer duty exemption or concession. There is:
If you entered into a contract to buy your first home before 1 July 2017, you may be eligible for the first home buyer duty reduction. This duty assistance is available to eligible first home buyers, in addition to the First Home Owner Grant.
Temporary exemptions and concessionsThere are some temporary duty exemptions and concessions that may be available if you are a first home buyer, even if you don’t qualify for the first home buyer duty exemption or concession. There is:
- A duty waiver available on the purchase of a new or established Victorian residential property with a dutiable value of up to $1 million. Contracts must be signed on or after 25 November 2020 and before 1 July 2021.
- A duty exemption or concession for the purchase of residential property, with a dutiable value of up to $1 million, located within the City of Melbourne local government area. A 50% concession is available for new residential properties and a full exemption is available for new residential properties that have remained unsold for 12 months or more since completion of construction. Different contract dates apply for each. The 50% concession applies after all other eligible benefits, such as the first home buyer duty concession, the principal place of residence concession (including any off-the-plan concession), and the pensioner concession have been taken into account.
- You enter into a contract of sale to buy your first home on or after 1 July 2017.
- Your home has a dutiable value of:
- $600,000 or less to receive the first home buyer duty exemption,
- $600,001 to $750,000 to receive the first home buyer duty concession.
- All the purchasers of the property meet the First Home Owner Grant eligibility criteria, and at least one purchaser satisfies the residency requirement.
- The exemption or concession is only available to you once. If you or your partner has received the benefit of this exemption or concession previously, you cannot receive it again.
Unlike the First Home Owner Grant, it doesn’t matter whether you buy a new or established home. The exemption or concession is also available for vacant land.
The dutiable value is usually the contract price. If you buy your home off-the-plan, the dutiable value is determined after applying any off-the-plan concession. This means it will probably be less than the contract price.
If you are buying a property with a foreign purchaser, special rules may apply.
Use our calculator to calculate the duty you have to pay.
Find out more about applying for the first home buyer duty exemption or concession.
( references: https://www.sro.vic.gov.au/fhbduty ) - Are you eligible for the exemption or concession?All purchasers and their partners must satisfy the eligibility criteria for the First Home Owner Grant except:
- Your home does not have to be a new home.
- Your contract price can be more than $750,000 (remember, it is the dutiable value that is important).
- This means the exemption or concession is available even if you are buying an established or existing home and/or if your contract price is over $750,000. However, your home needs to meet the dutiable value requirements.
