How to Reduce or Avoid Stamp Duty in Australia (2026)
Stamp duty is one of the largest upfront costs of buying property in Australia. On a $700,000 home, duty ranges from $13,000 in QLD (with the home concession) to $37,000+ in Victoria. There are several legal strategies Australians use to reduce or eliminate stamp duty — all based on government concessions or structural decisions about how and what you buy.
This guide explains each strategy with a clear explanation of who qualifies, how much you can save, and the conditions attached.
Strategy 1 — Use Your First Home Buyer Exemption
The most powerful stamp duty reduction available is the first home buyer exemption or concession offered by every state and territory. These can save you $15,000–$31,000+ depending on your state and purchase price.
| State/Territory | FHB Exemption Threshold | Maximum Saving |
|---|---|---|
| NSW | Full exemption ≤$800,000 | ~$31,490 |
| VIC | Full exemption ≤$600,000 | ~$31,070 |
| QLD | Home concession rate (all prices) | ~$5,000–$15,000 |
| WA | Full exemption ≤$430,000 | ~$14,440 |
| SA | No general exemption | $0 |
| TAS | 50% concession (all prices) | Varies |
| ACT | Full exemption (income-tested, no price cap) | Up to $37,000+ |
| NT | Full exemption ≤$500,000 | ~$30,000+ |
Who qualifies:
- Never previously owned residential property in Australia (in most states — some states use “have not owned in the past X years”)
- Australian citizen or permanent resident
- Must intend to live in the property
Key action: Confirm eligibility with your solicitor or the relevant state revenue office before exchanging contracts.
Strategy 2 — Stay Under Key Price Thresholds
Remaining just below a concession threshold can eliminate your stamp duty entirely — or save tens of thousands of dollars.
| State | Key Threshold | Effect |
|---|---|---|
| NSW | $800,000 | FHB exemption — saves ~$31,490 vs $801,000 |
| VIC | $600,000 | FHB exemption — saves ~$31,070 vs $601,000 |
| WA | $430,000 | FHB exemption — saves ~$14,440 vs $431,000 |
| NT | $500,000 | Territory Home Owner Discount — saves ~$30,000 |
Practical example: If you are a NSW first home buyer and your preferred property is listed at $810,000, negotiating the price down to $800,000 saves you the full $31,490 in stamp duty — making your total cost of purchasing at $800,000 potentially less than purchasing at $810,000 even if the asking price was the same.
Strategy 3 — House and Land Package (Separate Contracts)
In many states, stamp duty is calculated on the land purchase price only when you buy land and construction as separate contracts.
Example (QLD):
- Completed new home: $600,000 total — duty calculated on $600,000 ≈ $8,750 (home concession)
- House and land with separate land contract at $200,000, construction $400,000:
- Duty calculated on $200,000 land only ≈ $2,000
- Saving: ~$6,750
This works in QLD, SA, WA and some other states where the contracts are genuinely separate. It requires a registered building contract — not just an internal split.
States where this is most useful:
- Queensland
- Western Australia
- South Australia
Strategy 4 — Off-the-Plan Apartment Purchase
In most states, stamp duty on off-the-plan purchases is assessed on the land value component only (the construction value is not yet complete at time of contract). This can significantly reduce the dutiable value.
Example (VIC):
- Off-the-plan apartment contract price: $600,000
- Estimated construction value at contract: $280,000
- Dutiable value: $600,000 − $280,000 = $320,000
- Duty on $320,000 (standard): ~$12,470
- vs duty on completed $600,000: ~$31,070
- Saving: ~$18,600
Important caveats:
- The off-the-plan reduction depends on the stage of construction at contract
- In VIC, the off-the-plan concession has been narrowed in recent years — verify eligibility
- If the property is completed by the time of settlement, the off-the-plan reduction may be reduced or eliminated
- In QLD and SA, specific off-the-plan concessions apply — verify with state revenue office
Strategy 5 — ACT Home Buyer Concession Scheme (Income-Tested)
In the ACT, the Home Buyer Concession Scheme (HBCS) provides a full exemption from conveyance duty for buyers who:
- Have not owned ACT residential property in the past 2 years
- Earn below the income threshold (~$160,000 for singles, ~$170,000 for couples — verify with ACT Revenue)
- Intend to occupy as principal residence
This is open to repeat buyers (not just first home buyers) — making it one of the most accessible concessions in Australia for those who qualify on income.
See Stamp Duty ACT — Concessions Explained.
Strategy 6 — Transfer Between Spouses or Family Members
In most Australian states, transferring property between married or de facto partners as part of a relationship restructure (e.g., adding a partner to the title, removing a name after refinancing) may be exempt from stamp duty.
Common exemptions:
- Transfer to spouse for consideration of love and affection (principal residence) — exempt in most states
- Transfer pursuant to a court order following divorce or separation — generally exempt
- Transfer from deceased estate in some circumstances
Conditions vary significantly by state — this requires advice from a solicitor before proceeding.
Strategy 7 — Time Your Purchase Around State Budget Changes
State governments occasionally change stamp duty rates, thresholds or concessions in their annual budgets. First home buyer thresholds have been raised periodically — particularly when property prices increase significantly.
Actionable tip: If your state has announced a change to FHB thresholds in an upcoming budget, timing your purchase to take effect after the change could save you significant money. Consult a solicitor about contract timing and effective dates of legislative changes.
Strategy 8 — Concessions for Pensioners and Downsizers
Some states offer stamp duty concessions for pension card holders and downsizers purchasing a principal residence — separate from first home buyer schemes.
| State | Pensioner/Downsizer Concession |
|---|---|
| VIC | Land transfer duty concession for pensioners purchasing principal residence |
| QLD | Home concession rate (applies to any owner-occupier, not just FHBs) |
| WA | Owner of home rate — lower rate for owner-occupiers |
| SA | Verify with RevenueSA |
What Does NOT Reduce Stamp Duty
- Negotiating on chattels/inclusions: Attempting to allocate part of the purchase price to chattels (furniture, whitegoods) to reduce the dutiable property value is generally audited by state revenue offices and may be disallowed
- Trust structures: Using a trust to buy may actually increase duty in some states (e.g., VIC has an additional trust duty)
- Using a company: Property purchases through companies are generally ineligible for FHB concessions
Summary — Strategies by State
| State | Best Strategies |
|---|---|
| NSW | FHB exemption (≤$800k); annual property tax election for FHBs ≤$1.5m |
| VIC | FHB exemption (≤$600k); off-the-plan reduction; pensioner concession |
| QLD | Home concession rate; house-and-land separate contracts; FHOG |
| WA | FHB exemption (≤$430k); owner-of-home rate |
| SA | Off-the-plan concession; FHOG for new builds |
| TAS | 50% FHB concession; FHOG |
| ACT | HBCS full exemption (income-tested); no price cap |
| NT | Territory Home Owner Discount (≤$500k); FHOG |
Related Guides
- Stamp Duty Calculator Australia
- Stamp Duty Australia — All States
- Stamp Duty Comparison Table
- First Home Buyer Stamp Duty Concessions
- Stamp Duty Hub
This article provides general information about stamp duty reduction strategies. The availability and conditions of concessions vary by state and change regularly. Always verify with the relevant state revenue office or your solicitor before purchasing. For advice tailored to your situation, speak with a licensed mortgage broker or financial adviser. Find one through MoneySmart.