Various COVID-19 relief measures have caused delays in our service. We are assessing lodgements and applications in order of date received.
You can claim a first home concession for transfer duty when acquiring your first residence if you meet certain requirements.
The first home concession only applies to a home valued under $550,000 and can save you up to $15,925. The home concession may still apply for a home valued over $550,000.
You do not have to be an Australian citizen or permanent resident to claim a concession, but you must meet the eligibility criteria. Additional foreign acquirer duty may apply if you are a foreign person.
To be eligible for a first home concession when you buy or acquire a home, you must:
have never held an interest in another residence anywhere in Australia or overseas
be at least 18 years of age (we explain below when we may waive this requirement)
move into it with your personal belongings and live there on a daily basis within 1 year of settlement (this time cannot be extended)
not dispose (sell, transfer, lease or otherwise grant exclusive possession) of all or part of the property before you move in
be paying market value if the residence is valued between $500,001 and $549,999.
To keep the benefit of the first home concession in full after you move in, you must not dispose of all or part of the property within 1 year. A partial concession may apply if you dispose within 1 year.
Provided you qualify, you can claim a first home concession on your interest (or share), whether or not other acquirers also qualify for a first home concession or home concession.
Demolishing the home
The first home concession will not apply if you demolish the existing home without first living there, even if you construct and occupy a new home within a year.
An architect purchases an old house on a block of land. The old house will be removed so that a new house can be built. For convenience, the architect stays in the house over a weekend while he removes some fittings. He plans to continue living in a leased apartment while the new house is built.
The architect is unable to claim the home concession as he didn’t make the house his principal place of residence before demolishing it.
A couple buys a house, moves in and lives there after enrolling their child in a local day care centre. They update their electoral roll, driver licence and myGov details. After living there continuously for 3 months, they decide to rebuild. They move out and arrange for the house to be demolished.
They have resided in the property and made it their principal place of residence. Provided they do not sell, transfer, lease or otherwise grant exclusive possession within the first year of occupying the property, they are able to retain the full benefit of the concession even though the original house was demolished.
Existing tenants or previous owners
Any existing tenants must move out when their lease expires or within 6 months of settlement, whichever is the earlier, for you to stay eligible for the concession. Previous owners who continue to stay in the property must also move out within 6 months.
When lodging documents, make sure you include a covering letter with your name, address and details of what you have lodged. If you also give us an email address or mobile number, we will confirm when we’ve received your documents.
To claim a first home concession as a minor, you need to apply to us first so we can determine if we should make an exception to the age requirement.
Minors can only claim a first home concession if we are satisfied that the transaction is not part of a scheme to avoid transfer duty.
We will consider the following factors on a case-by-case basis:
the way in which the first home purchase agreement is structured
the reason for the purchase
the living arrangements for you and your family
the family arrangements generally
whether the funds to purchase the home were independently sourced.
If you are not eligible for the first home concession, you may still be eligible to claim a home concession that has no age restrictions and does not require pre-approval.
Claiming after the transfer
If you’re unsure that you meet the concession requirements, you can pay duty at the full rate when your documents are assessed and then claim the concession later if you have met, or will meet, the requirements. You just need to lodge the forms and documents with us.
You can also do this if you didn’t claim a concession when you acquired the home because you weren’t going to occupy it, but then you decide to move in.
In either case, we will reassess your duty at the concessional rate and refund the balance of your original payment. Find out about applying for a reassessment.