Stamp duty has been abolished for first-home buyers purchasing a home with a dutiable value of not more than $600,000 where the contract is signed from 1 July 2017.
Further, duty will be phased-in for eligible first-home buyers who purchase a home with a dutiable value between $600,001 and $750,000.
- What are the new stamp duty changes?
There is an exemption from stamp duty for first-home buyers who buy a home with a dutiable value of $600,000 or less.
First-home buyers buying a home with a dutiable value from $600,001 to $750,000 will be entitled to a concessional rate of duty, calculated on a sliding scale.
In most cases, the dutiable value of a property is the price you pay for it minus any deductions (such as the off-the-plan concession). If the price you pay for the property is less than market value, the dutiable value will be the market value minus any deductions.
- How does the concessional rate of duty work?
The concession applies on a sliding scale. The closer the dutiable value is to $600,001, the greater the concession.
This table gives you a guide on how the concession works.
Examples of first-home buyer duty concession
|
Dutiable value |
Normal duty |
Duty after concession |
|
$605,000 |
$31,370 |
$1045 |
|
$625,000 |
$32,570 |
$5428 |
|
$650,000 |
$34,070 |
$11,356 |
|
$675,000 |
$35,570 |
$17,785 |
|
$700,000 |
$37,070 |
$24,713 |
|
$725,000 |
$38,570 |
$32,141 |
|
$745,000 |
$39,770 |
$38,444 |
The first-home buyer exemption and concession are available for both established and new home purchases.
- How do you qualify for the exemption/concession?
There are a number of criteria you or the property must satisfy:
Value of the property:
The home purchased must have a dutiable value:
Of $600,000 or less to receive the exemption,
From $600,001 and $750,000 to receive the duty concession
The dutiable value for a property is generally the greater of its purchase price or market value minus any deductions (such as the off-the-plan concession).
The off-the-plan concession deducts the construction or refurbishment costs incurred after you sign the contract from the contract price.
Purchaser eligibility:
All purchasers and their partners must meet the FHOG eligibility criteria to be entitled to this duty exemption/concession.
Residency requirement
At least one purchaser must use the home as a principal place of residence (their home) for a continuous period of 12 months, starting within 12 months of becoming entitled to possession of the purchased property (this normally occurs at settlement).
- When will this exemption/concession commence?
The first-home buyer duty exemption and phase-in concession is available for transfers resulting from contracts entered into on or after 1 July 2017.
If you enter into a contract before 1 July 2017 but settle after this date, you will not be eligible for the new first home buyer exemption or phase-in concession. You may, however, be eligible for the existing first-home buyer duty reduction.
- Purchasers with Concession Cards
Concession cards do not affect the first home buyer duty exemption / concession.