Want to save thousands on your first home?
Purchasing your first home is a big milestone in life, but it can also be expensive. However, first-home buyers in Australia may be able to take advantage of stamp duty concessions, which vary depending on the state or territory. In this article, we will outline the rules for each state and territory to help you understand the relief that may be available for you.
New South Wales
In NSW, eligible first-home buyers are not required to pay stamp duty on properties with a value of up to $650,000. For properties valued between $650,000 and $800,000, a concessional rate applies, potentially saving you over $26,000 when you purchase a home. In regards to vacant land, first home buyers won’t pay stamp duty on land worth up to $350,000, while land valued between $350,000 to $450,000 attracts a concessional rate. Additionally, the NSW government has abolished insurance duty on lender’s mortgage insurance, saving you further money if you borrow more than 80% of a property’s value.
Victoria
If you are a first homeowner in Victoria, you won’t be required to pay any stamp duty if your property is valued at less than $600,000, and you entered into your contract after 1 July 2017. For properties valued between $600,000 and $750,000, a concessional rate applies.
Queensland
First homeowners in Queensland receive a concessional rate of stamp duty, which means you won’t have to pay stamp duty if you’re buying a first home worth less than $500,000, and a concessional rate applies to homes valued between $500,000 and $550,000. If you’re buying vacant land, there’s no stamp duty on land valued up to $250,000, and a concessional rate applies to land valued between $250,000 and $400,000.
Western Australia
In Western Australia, first-home buyers do not have to pay any stamp duty on homes valued at less than $430,000. A concessional rate applies to homes valued between $430,000 and $530,000. Similarly, there’s no stamp duty on land valued up to $300,000, and a concessional rate applies to land valued between $300,000 and $400,000.
South Australia
While there isn’t a specific first-home buyer concession in South Australia, there’s an ‘off the plan’ stamp duty concession available for apartments valued above and below $500,000.
Tasmania
First-home buyers in Tasmania can receive a concession of up to 50% if they’re purchasing an established home.
Australian Capital Territory (ACT)
The ACT government doesn’t provide a discount for first-home buyers, but certain categories of home buyers can qualify for a discounted rate of stamp duty on their purchase. Depending on the value of the home you’re buying, you may not need to pay any stamp duty at all.
In summary, as a first-home buyer in Australia, there may be relief available through stamp duty concessions. It’s worth checking the rules for your state or territory to see what savings you may be eligible for when purchasing your first home. By taking advantage of these concessions, you could potentially save thousands of dollars and make homeownership more accessible.
