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 claimed the first home vacant land concession, 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, not dispose (sell, transfer, lease or otherwise grant exclusive possession) of all or part of the property before you move in or 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.
For two or more acquirers, 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. 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.
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.
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.