Taking the first steps toward buying a new home can be an exciting event for first time buyers, but with the additional fees and expenses involved – not to mention the subsequent exemptions and grants – it can be difficult to know where to start to make the most out of your experience. One important fee to consider is stamp duty, but do you qualify for exemption?

Stamp duty concession in Victoria

There are times when buyers may be exempt from paying duties on new-build homes or homes under construction. This is usually a one-off exemption for a principle place of residence (PPR) that is valued at $60,000 maximum – or a concession for a home with a dutiable value between $600,001 and $750,000.

The rules

To qualify for stamp duty exemption or concessions, you must adhere to a certain set of guidelines. These will vary, depending on what you are eligible for and are applying for.

PPR and First-home buyer requirements

For PPR, the purchase price of the property needs to be between $130,000 and $550,000 to meet the initial terms. From, here you (or at least one named purchaser) will need to be living in the property in question for at least twelve months, starting within the first year of ownership.

First-home buyer concessions may be dependent on the status of your new home – and whether or not it is ‘new’. New-builds are open to receive a grant (the FHOG) but pre-existing or established homes do not meet the same criteria. In these instances, you may be eligible for the first home buyer’s stamp duty reduction instead.

For this you will need to meet the same price range and residency requirements for the principle place of residence concession – and you should not have been in receipt of the FHOG, owned or part-owned a residential property previously (before 1 July 2000), or occupied a residential property for a continuous period of at least 6 months that you have been hoping to buy (on or after 1 July 2000). These also apply to partners or spouses that will be living in the property – whether they are named or otherwise.

Confused? Don’t know where to start? Contact your friendly mortgage broker at Tundra Mortgage Brokers today to see if you qualify for first home buyer incentives.

For more information please visit the official website of State Revenue Office Victoria: https://www.sro.vic.gov.au/pprdutyconcession.