Australia's first full stamp duty exemption for some home buyers is coming

Stamp duty is being scrapped for some ACT buyers. Here's how the rest of Australia stacks up.

Buyers typically pay stamp duty, which ranges from 2 to 6 per cent and is levied by the state or territory. Source: AAP / Mick Tsikas

In brief

• The ACT is set to scrap stamp duty for first-home buyers entirely in a bid to tackle housing affordability in the capital.
• Most jurisdictions have stamp duty concessions for first-home buyers, but none are as generous as the new ACT measures.

The ACT is set to scrap stamp duty for first-home buyers entirely, becoming the first territory or state in Australia to do so. 

The measure is designed to address growing housing unaffordability, which the capital struggles with like the rest of the country, as part of ACT Treasurer Chris Steel's second budget, handed down on Wednesday.

Under current rules, only first-home buyers of properties under $1 million are exempt from paying the transfer tax if they meet low-income eligibility thresholds.

From 1 July, no first-home buyer will pay stamp duty in the ACT as the territory's Labor government pushes ahead with its 20-year plan to replace stamp duty with a land tax system.

"The elimination of stamp duty for first-home buyers complements the federal government's tax reforms by supporting younger generations of Canberrans to own their own home," Steel said.

The exemption will also apply to pensioners, some National Disability Insurance Scheme recipients, and anyone who has not owned a property for five years.

The move will make the ACT the most progressive jurisdiction in shifting away from stamp duty, although most others have similar measures in place.

Where Australia stands on stamp duty

The Northern Territory is the only territory or state in Australia where first-home buyers do not receive any concessions on stamp duty, although Tasmania will soon join it.

Everywhere else, the land transfer tax is typically reduced for first-home buyers.

However, a buyer's intention for the property, the type of property it is, whether the buyer is a concession card holder, their residency status, and their income can all affect the cost of stamp duty.

First-home buyers seeking to live in a cheaper new build will generally receive the deepest stamp duty discounts, whereas investors looking to rent out a more expensive existing property will generally pay more.

ACT Treasurer Chris Steel said removing stamp duty for first-home buyers in the territory would support younger generations to own their own home. Source: AAP / Lukas Coch

Foreign buyers living overseas typically pay an additional 7 to 8 per cent on top of the standard stamp duty rate.

Vacant lots are typically much cheaper, as stamp duty is paid on the value of the land, rather than a completed house.

Stamp duty is largely determined by the property's market value and applies a sliding scale, similar to income tax.

It is paid by the buyer and is usually transferred through the buyer's conveyancer or solicitor at or soon after settlement.

NSW

First-home buyers in NSW pay no stamp duty on new and existing homes valued up to $800,000.

A sliding-scale concessional rate applies to properties valued between $800,000 and $1 million.

Off-the-plan buyers can defer stamp duty payments for up to 12 months while the property is being built.

Victoria

First-home buyers in Victoria pay no stamp duty on homes up to $600,000, and pay a discounted rate on homes up to $750,000.

Residents buying a "principal place of residence" pay a slightly lower rate for homes under $550,000.

Off-the-plan buyers can deduct the cost of construction work occurring after the contract date, which can significantly reduce the property's taxable value.

Queensland

First-home buyers in Queensland pay no stamp duty on homes up to $700,000, and pay a discounted rate on homes up to $800,000. There is also no stamp duty for first-home buyers on newly built homes or vacant lots intended for new builds.

Any buyer who moves into their property as their primary residence within a year of the settlement date receives a discounted tax rate on the first $350,000 of the purchase price.

South Australia

First home buyers in South Australia pay no stamp duty on newly built homes or vacant lots intended for a new build. This concession has no property price cap.

However, first-home buyers seeking to purchase an established home must pay standard stamp duty rates in full.

Off-the-plan buyers do receive partial stamp duty concessions for apartments or new builds, depending on the stage of construction.

Western Australia

First-home buyers in Western Australia pay no stamp duty on homes valued up to $600,000, and a concessional rate on properties up to $800,000.

On vacant lots, first-home buyers also pay no stamp duty up to $450,000.

Off-the-plan buyers can access a 75 per cent stamp duty rebate for apartments under construction or newly completed. This rebate is capped at $50,000.

Tasmania

First-home buyers in Tasmania pay no stamp duty on homes valued up to $750,000. However, this is a temporary budget measure set to expire on 30 June, 2026.

After that date, first-home buyers will have to pay normal stamp duty rates like everyone else.

Northern Territory

While the Territory does not offer general stamp duty concessions for first-home buyers, it does offer a $50,000 grant for first-home buyers building or buying a brand new home. Buyers in the NT may also be eligible for a stamp duty exemption if they buy an eligible new house and land package.

First-home buyers who bought an existing property before 30 September 2025 can access a $10,000 grant to offset the cost of stamp duty within 12 months of settlement.

— With additional reporting by the Australian Associated Press.

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