Beginner's Guide to Stamp Duty Concessions

Victoria offers one of the most accessible stamp duty concessions in Australia for first home buyers.

If you're purchasing in Templestowe or surrounding areas, you can access a full transfer duty exemption on homes valued up to $600,000, or a partial concession on properties between $600,001 and $750,000. The concession applies to both new and established homes, provided you meet residency requirements.

Who Qualifies for the Victorian First Home Buyer Stamp Duty Exemption

You qualify for the concession if you or your partner have never owned property anywhere in Australia, you're purchasing as an individual or with a spouse or domestic partner, and you intend to occupy the home as your principal place of residence within 12 months of settlement. You must then live in the property continuously for at least 12 months.

These requirements apply across the state. The obligation to occupy the property within 12 months creates planning implications if you're building or renovating before moving in, so timing becomes part of the settlement discussion rather than an afterthought.

How the Concession Works Across Different Price Bands

The structure of Victoria's concession changed in mid-2023, removing income caps and simplifying access. For properties valued up to $600,000, transfer duty is reduced to nil. Between $600,001 and $750,000, a sliding scale concession applies. Above $750,000, standard duty rates apply with no concession.

Consider a buyer purchasing a three-bedroom villa in Templestowe. CoreLogic data from May 2026 shows the all-dwellings median house price in Templestowe at $1,605,000, placing most family homes well above the concession threshold. However, the unit market offers more accessible entry points, with a median unit price of $1,000,944. While still above the concession cap, smaller units or properties requiring renovation may fall within the partial concession band.

If that buyer instead looked at nearby Bundoora, where the all-dwellings house median sits at $905,000 and the unit median at $520,000, they would access the full exemption on a unit purchase. On a $520,000 unit, the full stamp duty exemption saves approximately $27,070 in transfer duty, funds that can instead be directed toward furniture, minor renovations, or retained as an emergency buffer.

Combining the Stamp Duty Exemption with Other Schemes

The Victorian stamp duty concession can be used alongside the Australian Government 5% Deposit Scheme and the $10,000 First Home Owner Grant for new homes. The grant applies only to new builds valued under $750,000, and does not extend to established homes.

If you're looking at first home buyers strategies in Templestowe, pairing the stamp duty exemption with the 5% Deposit Scheme may reduce the total cash required at settlement. The scheme allows eligible buyers to purchase with a 5% deposit while Housing Australia provides a guarantee to the lender, removing the need for lenders mortgage insurance. Victoria falls within the $950,000 property price cap for capital cities and regional centres under the scheme, as confirmed by Housing Australia's official price cap table.

The schemes operate independently but can be accessed on the same transaction, provided all eligibility criteria are met. Your broker structures the application to satisfy both sets of requirements, rather than choosing one or the other.

What the Exemption Doesn't Cover

The stamp duty exemption applies only to transfer duty on the property itself. It does not cover mortgage registration fees, which are approximately $119 in Victoria, or other settlement costs including conveyancing, building and pest inspections, or loan establishment fees.

If you're purchasing with a low deposit and require lenders mortgage insurance, the LMI premium remains payable even when stamp duty is fully exempt. In Victoria, stamp duty on the LMI premium itself was abolished in mid-2023, which removes one layer of cost but does not eliminate the premium.

These distinctions matter when calculating total funds required at settlement. A common error is assuming that a stamp duty exemption means settlement costs are limited to the deposit alone. In practice, you still need conveyancing fees, inspection costs, loan establishment fees, and potentially LMI, which together can add several thousand dollars to the amount required before settlement.

How Established Homes in Templestowe Sit Within the Concession Framework

Templestowe's housing stock skews toward larger family homes on established blocks, with three-bedroom medians from Domain sitting at $1,107,500 and four-bedroom homes at $1,495,000. These figures place the majority of houses outside both the full exemption and partial concession bands.

The unit market in Templestowe includes a proportion of older-style villas and townhouses, some of which may fall within the $600,001 to $750,000 partial concession range depending on size, condition, and location within the suburb. A buyer in that scenario would still benefit from a reduced duty amount, though not a full exemption.

For buyers committed to Templestowe specifically, maximising the benefit of the concession may involve targeting properties requiring cosmetic renovation, or considering adjacent suburbs where median prices provide better alignment with the exemption bands. Bundoora, Greensborough, and Reservoir all offer unit stock within or closer to the concession thresholds, and each sits within 20 minutes of Templestowe by car.

New Builds and the $10,000 First Home Owner Grant

Victoria's First Home Owner Grant of $10,000 applies to new homes valued up to $750,000. The grant does not apply to established homes. A new home is defined as one that has not been previously occupied as a place of residence, and includes substantially renovated homes that meet specific criteria under the legislation.

If you're purchasing a house and land package or a newly completed townhouse in Templestowe or nearby precincts, you can access both the stamp duty exemption and the grant on the same transaction, provided the total property value remains under $750,000. Given Templestowe's price points, this combination is more commonly applied in suburbs further north and east, where new estates and developments offer entry-level product within the cap.

The grant is paid after settlement and requires occupancy within 12 months, with a minimum continuous residency period of 12 months. It's administered by the State Revenue Office Victoria, and your conveyancer typically manages the application as part of the settlement process.

Planning for Upfront Costs Beyond Stamp Duty

Even with a full stamp duty exemption, settlement costs remain material. Conveyancing fees typically range from $1,200 to $2,500 depending on the complexity of the transaction. Building and pest inspections together cost approximately $600 to $1,000. Loan establishment fees vary by lender but commonly sit between $300 and $600. Mortgage registration is $119 in Victoria.

If you're borrowing above 80% of the property value, lenders mortgage insurance applies. The premium is calculated on a sliding scale based on loan amount and loan-to-value ratio, and for a 95% loan can add several thousand dollars to the total.

Understanding the breakdown of these costs early in the process allows you to structure your savings and deposit strategy accordingly. A buyer who assumes that a $30,000 deposit on a $600,000 property will cover all upfront costs may find themselves short by $5,000 to $10,000 at settlement, creating unnecessary pressure in the final weeks before settlement.

Your broker can provide a detailed cost estimate once your purchase price and deposit level are confirmed, allowing you to adjust your strategy if needed. If you're considering refinancing an existing loan or consolidating debts to improve your borrowing capacity, that process should be completed well before you begin making offers, not during the settlement period.

Off-the-Plan Purchases and Duty Concessions in Victoria

Victoria offered an off-the-plan duty concession for contracts signed on or before 31 October 2026, under which duty was calculated on the land value at the contract date only, rather than the completed property value. That concession ended on 31 October 2026 and does not apply to contracts signed after that date.

For buyers who signed eligible contracts before the deadline, the concession can be combined with the first home buyer stamp duty exemption, though the interaction depends on the total dutiable value and the structure of the contract. Your conveyancer confirms which concessions apply and in what order they are calculated.

Templestowe has limited off-the-plan apartment stock compared to inner-city precincts, but surrounding areas including Doncaster, Bulleen, and Heidelberg have seen townhouse and villa developments in recent years. Buyers in those markets who contracted before the October 2026 deadline may still benefit from the concession at settlement.

Call one of our team or book an appointment at a time that works for you to discuss how Victoria's stamp duty concessions and federal schemes apply to your specific situation, and to structure a home loan that aligns with your upfront cost position and long-term ownership plans.

Frequently Asked Questions