If you're an aspiring homebuyer, you'd be forgiven for considering stamp duty a major roadblock to homeownership.
Luckily, there are many ways you might be able to minimise the tax, or even avoid it altogether. This might particularly be the case if you're buying your first home or you're purchasing a property you plan to live in.
Let's break down what stamp duty is and delve into how you might be able to dodge it.
What is stamp duty?
Stamp duty, also known as transfer duty, is a tax that state and territory governments charge to buyers when a property changes hands.
It's an additional cost on top of a property's purchase price and how much a buyer might be liable for can depend on several factors, including on how much they paid for the house, the type of property purchased, and where it's located.
Our stamp duty calculator can provide an estimate on how much stamp duty you may need to pay if you're planning to buy a house, an apartment, or land.
While few people enjoy paying stamp duty, the tax has its purpose. Funds collected are used to improve state- or territory-run services such as healthcare, education, law enforcement, and the creation and upkeep of infrastructure.
See also: Stamp duty FAQs: your frequently asked questions answered
Can you avoid paying stamp duty?
Each state and territory has its own rules regarding who can and cannot be exempted from paying stamp duty.
They also each calculate the tax slightly differently and charge buyers at different points of the homebuying journey. Also worth nothing are the first home owners grants on offer by many states and territories.
Here's Your Mortgage's state-by-state breakdown of stamp duty exemptions:
NSW stamp duty exemptions
Can first home buyers avoid stamp duty in NSW?
Thanks to the First Home Buyers Assistance Scheme, first time buyers in NSW can avoid paying stamp duty, as long as their property's value is within threshold amounts.
| Property type | Property value | Stamp duty |
|---|---|---|
| Dwelling | Up to $800,000 | Exempt |
| Dwelling | $800,001 - $1,000,000 | Discounted |
| Land | Up to $350,000 | Exempt |
| Land | $350,001 - $450,000 | Discounted |
See also: NSW First Home Owners Grant
Other ways to avoid stamp duty in NSW
You might also be able to avoid paying stamp duty in NSW if you receive property from a deceased estate, if property is being transferred between married or de facto partners, or in the event of a marriage or relationship breakdown.
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Victoria stamp duty exemptions
Can first home buyers avoid stamp duty in Victoria?
Victorian first home buyers might find they're exempt from paying stamp duty if the property they're buying is valued at less than $600,000.
| Property type | Property value | Stamp duty |
|---|---|---|
| Dwelling or land | Up to $600,000 | Exempt |
| Dwelling or land | $600,001 - $750,000 | Discounted |
See also: Victoria's First Home Owners Grant
Other ways to avoid stamp duty in Victoria
Additionally, Victoria will waive stamp duty for pensioners and concession card holders spending less than $600,000 on a property, and discount the duty charged to pensioners and concession card holders spending between $600,001 and $750,000.
The state might also grant exemptions in cases of deceased estates, transferring property between spouses, and for the purchase of family farms or a farmer's first farmland purchase.
Queensland stamp duty exemptions
Can first home buyers avoid stamp duty in Queensland?
First home buyers in Queensland might be eligible for a stamp duty exemption when buying properties valued at up to $700,000.
| Property type | Property value | Stamp duty |
|---|---|---|
| Dwelling | Up to $700,000 | Exempt |
| Dwelling | $700,001 - $800,000 | Discounted |
| Land | Up to $350,000 | Exempt |
| Land | $350,001 - $500,000 | Discounted |
See also: Queensland's First Home Owners Grant
Other ways to avoid stamp duty in QLD
The Queensland Government also provides stamp duty discounts for people purchasing a home to live in. The home concession applies to the stamp duty otherwise payable on the first $350,000 of a property purchase.
Other exemptions might apply for those transferring a property between spouses or in the case of a deceased estate.
South Australia stamp duty exemptions
Can first home buyers avoid stamp duty in SA?
South Australia doesn't charge any first home buyer stamp duty… as long as they build or buy a new or off-the-plan home.
Those purchasing existing homes can't make use of the following discounts.
| Property type | Property value | Stamp duty |
|---|---|---|
| New dwellings | ∞ | Exempt |
| Off-the-plan | ∞ | Exempt |
| Owner-builder | ∞ | Exempt |
| Land | ∞ | Exempt |
| Established homes | - | No discount or exemption |
See also: SA's First Home Owners Grant
Other ways to avoid stamp duty in SA
Stamp duty exemptions or concessions might also be available to those entering property transactions brought by the death of a property owner or for transactions between spouses.
Western Australia stamp duty exemptions
Can first home buyers avoid stamp duty in WA?
First home buyers entering the market in Western Australia could make use of these stamp duty exemptions or concessions:
| Property type | Property value | Stamp duty |
|---|---|---|
| Dwelling | Up to $450,000 | Exempt |
| Dwelling | $450,001 - $600,000 | Discounted |
| Land | Up to $300,000 | Exempt |
| Land | $300,001 - $400,000 | Discounted |
See also: WA's First Home Owners Grant
Other ways to avoid stamp duty in WA
Western Australia also offers discounted stamp duty to those purchasing an off-the-plan apartment or unit in a multi-story development between now and June 2025, with concessions as follows:
| Contract signed | Value of property | Discount |
|---|---|---|
| Before construction begins | Up to $650,000 | Stamp duty exemption, capped at $50,000 |
| Before construction begins | $650,000-$750,000 | 50% to 100% discount on duty payable, capped at $50,000 |
| Before construction begins | Over $750,000 | 50% of duty payable, capped at $50,000 |
| When under construction | Up to $650,000 | 75% of duty payable, capped at $50,000 |
| When under construction | $650,000-$750,000 | 37.5% to 75% discount on duty payable, capped at $50,000 |
| When under construction | Over $750,000 | 37.5% of duty payable, capped at $50,000 |
Married or de facto couples mightn't need to pay stamp duty for property transfers, while those transferring property due to a relationship breakdown might face a nominal rate.
Exemptions are also available for those transferring farming land between family members.
Tasmania stamp duty exemptions
Can first home buyers avoid stamp duty in Tasmania?
If you're buying an established home in Tasmania as your first property, you mightn't need to pay any stamp duty at all.
| Property type | Property value | Stamp duty |
|---|---|---|
| Established dwelling | Up to $750,000 | Exempt |
| New dwelling | - | No concession |
See also: Tasmania's First Home Owners Grant
Other ways to avoid stamp duty in Tasmania
Tasmania also offers a discount on stamp duty to those purchasing an off-the-plan or new apartment or unit, whether they're first-time buyers or not.
| Property type | Property value | Stamp duty |
|---|---|---|
| New or off-the-plan unit | Up to $750,000 | 50% discount |
It also promises a 50% stamp duty discount to eligible pensioners downsizing from one home to another, as long as they spend less than $600,000 on their new property.
On top of that, concessions and exemptions are available for property transferred between spouses, in the event of a relationship breakdown, and for family farms being transferred to family members.
ACT stamp duty exemptions
Can first home buyers avoid stamp duty in the ACT?
The ACT does offer stamp duty discounts to first home buyers, but its Home Buyer Concession Scheme works notably differently to schemes in other states and territories.
For starters, there's no value threshold that buyers must abide by, but there are income limits.
The scheme is also open to all homebuyers who haven't owned property in the last five years purchasing any property to live in, whether that be a new home, an established dwelling, land, or an apartment.
The amount of savings a buyer can realise through the scheme is capped to $34,270 in financial year 2024-25.
Here are the income thresholds buyers and their partners must abide by to realise the discounts:
| Number of dependent children | Income threshold |
|---|---|
| 0 | $250,000 |
| 1 | $254,600 |
| 2 | $259,200 |
| 3 | $263,800 |
| 4 | $268,400 |
| 5+ | $273,000 |
Other ways to avoid stamp duty in the ACT
If you're buying an off-the-plan property in the ACT for less than $1 million and prior to 30 June 2025, you won't be liable to pay stamp duty.
Also, eligible pensioners downsizing their home can have more than $34,000 waived from their stamp duty costs under the Pensioner Duty Concession Scheme. That means they can spend up to $1 million on their new home without paying the tax.
Duty concessions may also be available for property transfers related to deceased estates, matrimonial transfers, adding an owner-occupier to a title, and passing farming land to younger generations.
Northern Territory stamp duty exemptions
Can first home buyers avoid stamp duty in the NT?
The Northern Territory is the only state or territory in Australia that doesn't offer a first home owner stamp duty discount or exemption.
Though, there is one way a homebuyer can dodge the tax in the territory.
Other ways to avoid stamp duty in the NT
The Northern Territory's House and Land Package Exemption can see stamp duty waived for eligible buyers.
As the name suggests, those buyers must be purchasing a house and land package.
There's no value threshold that a buyer must stick to and the scheme isn't means tested, meaning there isn't an income limit.
Photo by Ronnie George on Unsplash
Collections: Stamp Duty First Home Buyer Buying a home
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