First home concession
You can claim a first home concession for transfer duty when acquiring your first residence, as long as you meet certain requirements.
The first home concession only applies to a home valued under $550,000. The home concession may still apply for a home valued over this amount.
To be eligible for a first home concession when you buy or acquire a home, you must:
- have never claimed the first home vacant land concession
- have never held an interest in a 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
- not dispose (sell, transfer, lease or otherwise grant exclusive possession) of all or part of the property before you move in.
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.
Use our home concession eligibility tester to find out if you are eligible to claim the home concession or first home concession.
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.
How much will you pay
The first home concession is calculated at the home concession rate minus the first home concession amount.
If the home is valued at $500,000 or under, the first home concession amount will match the home concession rate resulting in no duty payable.
The concession doesn’t apply to any part of the land that’s used for non-residential purposes. Read the public ruling on the residential purposes for the transfer duty concession for homes and first homes (DA087.1).
If there’s a non-residential part of the land, use the transfer duty calculator to check the amount you will pay.
|Home value||Duty payable||Calculation|
|$450,000||$0.00||No duty payable because the value of the residence is under $500,000.|
|$530,000||$6,300.00||The home concession reduces the duty to $9,800. As the first home is valued between $530,000 and $534,999.99, a further concession of $3,500 applies.|
|$600,000||$12,850.00||Only the home concession applies because the value of the residence is over $550,000.|
How to claim
Complete the following forms and include them with your documents when lodging them for stamping:
- a claim for home or first home transfer duty concession (Form D2.1)
- an identity details annexure for each non-Australian transferor and transferee.
Find out more about lodging and stamping your documents.
18 years of age requirement
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:
- your age
- 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.
Obligations after you claim
If you claim the concession but don’t meet its eligibility requirements, you must notify us by completing a notice for reassessment (Form D2.4).
Read about common reasons for reassessment to find out more about a reassessment of your transfer duty concession and what documents you need to lodge.
After a reassessment, you may have to pay a transfer duty liability. You may also have to pay unpaid tax interest and penalty tax, depending on your circumstances.