Stamp Duty Concessions Victoria 2026: How First Home Buyers Save Up to $40,000
Stamp duty — formally called Land Transfer Duty in Victoria — is one of the biggest upfront costs when buying property. On a $700,000 purchase as a non-first-home-buyer, expect to pay around $37,000. But for eligible first home buyers and certain other purchasers, the Victorian government offers concessions that can reduce that bill to zero. This 2026 guide walks through every Victorian stamp duty concession available, who qualifies, how much you actually save, and the strategies our clients use to maximise the benefit.
At Dahiya Finance, we have helped Melbourne south-east buyers structure purchases to optimise stamp duty since 2020. The numbers below reflect 2026 thresholds and rates as administered by the Victorian State Revenue Office.
How Victorian Stamp Duty Is Calculated in 2026
Standard stamp duty in Victoria is calculated on a sliding scale based on the property purchase price. The full schedule of rates for 2026:
Up to $25,000: 1.4% of dutiable value
$25,001 to $130,000: $350 plus 2.4% of value over $25,000
$130,001 to $960,000: $2,870 plus 6% of value over $130,000
$960,001 to $2,000,000: 5.5% of total dutiable value
Over $2,000,000: $110,000 plus 6.5% of value over $2,000,000
For a typical Melbourne south-east buyer, here are the standard stamp duty amounts before any concessions:
$500,000 purchase: $21,970 stamp duty
$600,000 purchase: $31,070 stamp duty
$700,000 purchase: $37,070 stamp duty
$800,000 purchase: $43,070 stamp duty
$1,000,000 purchase: $55,000 stamp duty
These numbers are why concessions matter so much — they can make the difference between affording the purchase and being priced out.
First Home Buyer Stamp Duty Exemption (Up to $600,000)
If you are buying your first home in Victoria for $600,000 or less and you will live in the home as your principal place of residence, you pay zero stamp duty. This is a full exemption, not a discount — the saving on a $600,000 purchase is the full $31,070.
Eligibility for the full exemption
You and any co-purchaser must be at least 18 years old
You must be an Australian citizen, permanent resident, or New Zealand citizen with a special category visa
Neither you nor any co-purchaser has previously owned residential property in Australia (including investment property)
You must intend to live in the property as your principal place of residence for at least 12 continuous months commencing within 12 months of settlement
The property is a residential dwelling (house, unit, apartment, townhouse) — not vacant land alone
This exemption applies to both new and established homes, which makes it more broadly useful than the FHOG (which is only for new builds).
First Home Buyer Concession ($600,001 to $750,000)
For properties between $600,001 and $750,000, first home buyers receive a sliding-scale concession that reduces stamp duty significantly without eliminating it entirely. The formula is complex but here's what it looks like in practice:
$625,000 purchase: Concession reduces stamp duty from $32,570 to approximately $5,400. Saving: $27,000.
$650,000 purchase: Reduces from $34,070 to approximately $11,400. Saving: $22,600.
$675,000 purchase: Reduces from $35,570 to approximately $17,800. Saving: $17,700.
$700,000 purchase: Reduces from $37,070 to approximately $24,700. Saving: $12,300.
$725,000 purchase: Reduces from $38,570 to approximately $32,000. Saving: $6,500.
$750,000 purchase: No concession remains — full $40,070 payable.
Notice the cliff: at $750,001 there is no concession at all. This makes the $749,000 versus $751,000 decision worth tens of thousands. Many buyers stretch their budget by exactly the wrong amount.
Off-the-Plan Concession
Victoria offers a separate concession for buyers purchasing off-the-plan (before construction is complete). The concession effectively excludes the construction component of the purchase price from the duty calculation — meaning stamp duty is calculated only on the land value plus any construction completed at the time of contract.
For first home buyers, this can be stacked with the standard first home buyer concession. For non-first-home-buyers, the off-the-plan concession applies if the property will be your principal place of residence and meets the value caps.
Example: off-the-plan apartment in Cranbourne East
Purchase price $650,000 for a brand new apartment, with land value assessed at $200,000 and construction value of $450,000:
Standard stamp duty on $650,000: $34,070
Off-the-plan concession applied: duty calculated only on $200,000 land value = $5,870
First home buyer concession then applied on the $5,870: further reduction to approximately $1,200
Total stamp duty payable: $1,200 instead of $34,070. Saving: $32,870.
Pensioner Stamp Duty Concession
Eligible pensioners (Centrelink pension recipients) buying residential property in Victoria for $750,000 or less can claim a stamp duty concession. The concession amount depends on the property value and works similarly to the first home buyer concession's sliding scale.
Eligibility
You hold an eligible Centrelink concession card or Department of Veterans' Affairs concession card
You will live in the property as your principal place of residence
Property value $750,000 or less
You meet specific residence and ownership criteria
Family Farm Concession
If you are receiving farmland as a transfer from a family member (gift or sale), the Family Farm Concession can reduce stamp duty to nominal levels. This applies to working farms transferred between specific family members under particular conditions.
Foreign Buyer Surcharge (When Concessions Don't Help)
If you are a foreign purchaser (non-citizen, non-PR, non-NZ SCV holder), in addition to standard stamp duty you pay an 8% Foreign Purchaser Additional Duty on residential property. On a $700,000 purchase, that adds an extra $56,000 to the stamp duty bill.
Foreign buyers cannot claim the first home buyer concession (FHOG also unavailable). The only viable strategies are: become a permanent resident before purchase, or purchase with an Australian PR co-buyer who meets all first home buyer requirements.
Worked Example: Stacking Concessions in Officer 2026
Sarah, 29, single, $90k income, buying her first home — a brand new house and land package in Officer for $670,000 settling July 2026.
What Sarah saves
FHOG grant: +$10,000 (new home under $750k)
Stamp duty concession: Standard duty would be $35,070; first home buyer concession reduces to approximately $18,400. Saving: $16,670.
FHBG no-LMI: 5% deposit ($33,500). LMI saved at 95% LVR ≈ $20,000.
Total saved: $46,670
Sarah needs $33,500 deposit plus $18,400 stamp duty plus approximately $3,000 in legal and government fees = roughly $54,900 cash to settle. Without these concessions she'd need $85,000+. The difference between buying now and saving for 18 more months.
When You Don't Qualify: Strategies That Still Work
1. Co-buyer with previous property ownership
If one partner has previously owned property, neither gets the first home buyer concession. The fix: have the eligible buyer purchase alone, using parental guarantee if needed to satisfy serviceability.
2. Property over $750,000
No concession available above $750,000. Strategies: negotiate to under $750k, look in adjacent suburbs with lower medians (Cranbourne West, Cranbourne North versus Berwick), or wait and increase deposit while saving.
3. Investment purchase (not your home)
No first home buyer concession on investment purchases. The only strategies are buying the property to live in first (genuine PPR), then converting to investment after 12 months, or accepting the full duty cost as part of the investment numbers.
Stamp Duty Strategies by Suburb in 2026
Cranbourne: Established homes under $600k are common — full exemption widely accessible. Median is in the high $600s, meaning many buyers benefit from the partial concession.
Cranbourne West: New estates with house-and-land packages under $700k — stamp duty concession + FHOG + FHBG all stackable.
Hampton Park: One of the most affordable suburbs in Casey council. Most purchases fall under the $600k full exemption threshold.
Pakenham: Wide mix of price points. Established homes regularly under $600k, new builds often in the $650-750k partial concession band.
Officer and Clyde North: Almost entirely new-build markets, perfect for stacking FHOG + stamp duty concession + off-the-plan concession on apartments.
Berwick and Narre Warren South: Premium suburbs where many properties exceed the $750k cap. Strategy here is finding the right pocket — established 3-bed homes in older parts of these suburbs can still fall within concession territory.
How Stamp Duty Is Paid at Settlement
Your conveyancer or solicitor calculates the stamp duty payable, lodges the transfer paperwork with the State Revenue Office, and includes the duty amount in the settlement statement. The funds are paid at settlement — you don't pay upfront before settlement.
If you're claiming a concession or exemption, your conveyancer attaches the relevant declaration forms confirming your eligibility. The SRO can audit applications years later if doubt arises about eligibility, so accurate declarations matter.
Frequently Asked Questions
When does stamp duty get paid?
At settlement. Your conveyancer includes it in the settlement statement and pays the State Revenue Office on your behalf using funds from the settlement.
Can I include stamp duty in my home loan?
Not directly — lenders fund up to your maximum LVR on the property value, not on duty costs. However, you can structure your loan to free up cash elsewhere (e.g., using a 95% LVR with the FHBG to keep more savings available for duty and other costs).
What if I'm buying with a parent as guarantor?
Guarantor parents don't appear on title, so they don't affect your first home buyer status. The guarantor's previous property ownership is irrelevant.
Does buying through a trust affect stamp duty concessions?
Yes — trusts are generally ineligible for first home buyer concessions. The concession requires individual purchasers occupying the property. Speak to your accountant if a trust purchase is being considered.
What's the stamp duty on a $1,000,000 home in Victoria?
For a non-first-home-buyer: $55,000 (calculated at 5.5% of dutiable value above the $960k threshold). For a first home buyer: still $55,000 — no concession above $750,000.
Talk to a Local Mortgage Broker About Your Purchase
Stamp duty is just one piece of the cost-of-purchase puzzle. As Lyndhurst-based brokers who handle dozens of first home buyer applications each month, we structure the entire purchase to optimise your cash position at settlement — stamp duty concession claimed correctly, FHOG application included with conveyancer, FHBG no-LMI loan structured, and lender selected for the most competitive rate.
Our service is free to you — the lender pays us commission once your loan settles. Book a free 20-minute consultation to map out your stamp duty situation and total cost-to-purchase: call 0404 129 000, (03) 9005 4079 (Melbourne) or (02) 7238 0946 (Sydney).