Everything You Need to Know About Stamp Duty Concessions

What Stamp Duty Concessions Are Available in Victoria

Stamp duty concessions reduce or eliminate the transfer duty you pay when buying property. Victoria offers a full exemption for first home buyers purchasing property up to $600,000, and a sliding scale concession for properties between $600,000 and $750,000. These concessions only apply if you're buying an owner occupied home and meet eligibility requirements including income thresholds and residency commitments.

Consider a buyer purchasing a unit in Preston for $550,000. Without the first home buyer stamp duty concession, they would pay around $29,070 in transfer duty. With the full exemption, that cost drops to zero. That $29,070 can stay in their offset account, reduce what they need to borrow, or cover furniture and settlement costs without dipping into credit.

How Preston Property Prices Fit Within the Concession Thresholds

Preston sits in Melbourne's northern suburbs along High Street, with a mix of renovated weatherboard homes, newer townhouses, and apartment developments near Preston Market and the railway station. The suburb's median prices position many properties within the concession range, particularly units and smaller homes.

For a two-bedroom apartment near Bell Station priced at $580,000, a first home buyer accessing the full stamp duty exemption saves the entire transfer duty amount. A three-bedroom period home closer to Regent Station might be listed at $720,000. At that price point, a partial concession still applies, reducing the stamp duty bill from approximately $40,070 to around $10,035. The difference between paying full stamp duty and accessing the concession can represent several months of mortgage repayments or the gap between needing Lenders Mortgage Insurance and avoiding it.

Income Limits That Apply to Stamp Duty Concessions

To access Victoria's first home buyer stamp duty concession, your combined household income cannot exceed $135,000 per year for individuals or up to $200,000 per year for couples or two or more buyers purchasing together. Income is assessed using your most recent Notice of Assessment from the Australian Taxation Office.

In a scenario where a couple both work in Preston's retail and healthcare sectors, one earning $72,000 and the other $68,000, their combined income of $140,000 sits $60,000 below the couple threshold. They qualify without issue. A single buyer working in administration on $95,000 also qualifies comfortably. Income limits are assessed at the time you enter the contract of sale, not when you apply for home loan pre-approval, so timing your purchase around a pay rise or bonus might matter if you're close to the threshold.

Property Types That Qualify for the Concession

The concession applies to established homes, new builds, vacant land, and off-the-plan purchases. The property must be for owner occupation, meaning you need to move in and live there as your principal place of residence within 12 months of settlement and remain there for at least 12 continuous months.

An apartment purchased off-the-plan on Plenty Road qualifies, as does a renovated cottage on a side street near Northland. Vacant land on the outskirts heading towards Reservoir would also qualify if you intend to build your home. Investment properties do not qualify, even if it's your first property purchase. If you're comparing buying an apartment versus buying a house, both can access the concession provided the price and other criteria are met.

How the Sliding Scale Concession Works Between $600,000 and $750,000

Once a property's value exceeds $600,000, the concession reduces progressively until it phases out completely at $750,000. The reduction is calculated on a sliding scale, meaning the closer you are to $750,000, the less you save.

For a townhouse in Preston priced at $680,000, the full stamp duty would be approximately $37,070. The concession reduces this to around $17,535, saving nearly $20,000. At $730,000, the saving drops to roughly $5,000. Beyond $750,000, you pay full stamp duty with no concession. If you're looking at properties near the upper threshold, even a small negotiation on purchase price could shift you into a more favourable concession bracket and save thousands.

Documents You'll Need to Claim the Concession

You claim the stamp duty concession when lodging your transfer of land with the State Revenue Office, usually handled by your conveyancer or solicitor. You'll need to provide proof of identity, evidence of income such as your Notice of Assessment, and a signed declaration confirming you meet the eligibility criteria including the intention to occupy the property.

Your conveyancer will prepare the forms and submit them as part of settlement. The concession is applied at the time of transfer, not retrospectively, so make sure your conveyancer is aware you're eligible before settlement occurs. If you're working with a mortgage broker to arrange your home loan application, they can often connect you with conveyancers experienced in first home buyer concessions.

Combining Stamp Duty Concessions with Other First Home Buyer Assistance

You can access the stamp duty concession alongside other government schemes. The Home Guarantee Scheme in Victoria allows eligible first home buyers to purchase with a deposit as low as 5% without paying Lenders Mortgage Insurance. Combining both means you save on upfront duty and avoid LMI, reducing the cash and borrowing required to get into your first home.

If you're purchasing a newly built home or off-the-plan property in Preston, you may also qualify for the First Home Owner Grant, which provides $10,000 for new builds under $750,000. Stacking the grant, the stamp duty exemption, and a low deposit scheme can bring a first home within reach much sooner. Your broker can walk you through which combination applies to your situation and structure your owner occupied home loan to take full advantage.

If you're ready to understand how stamp duty concessions fit into your Preston property purchase, call one of our team or book an appointment at a time that works for you. We'll review your income, the properties you're considering, and make sure you're claiming every concession available so more of your money goes toward your home, not transfer duty.

Frequently Asked Questions