Stamp Duty Concessions: The Pros and Cons for Brunswick

Victoria offers one of the more generous stamp duty concessions in Australia for first home buyers. A full stamp duty exemption applies on properties valued up to $600,000 where the property is the buyer's principal place of residence, with a sliding scale concession on properties valued between $600,001 and $750,000. The exemption and concession apply to both new and established homes, which sets Victoria apart from jurisdictions that limit relief to new builds only.

How the Concession Applies to Brunswick Properties

Brunswick sits within the City of Merri-bek and attracts a mix of Victorian-era terraces, Edwardian cottages, and more recent medium-density developments. Most established properties in Brunswick now sit above the $600,000 threshold where the full exemption applies, though some one-bedroom apartments and smaller dwellings can still fall within that band. Properties valued between $600,001 and $750,000 receive a partial concession calculated on a sliding scale, which reduces the duty burden but does not eliminate it. Above $750,000, standard rates apply with no first home buyer relief.

Consider a first home buyer purchasing an apartment in Brunswick for $680,000. Under the sliding scale, that buyer receives a partial concession rather than paying the full duty applicable to an established property at that price. The concession reduces the upfront cost, though the buyer still pays a portion of the duty. The exact amount varies based on the property value and is calculated according to the formula set out in the Duties Act 2000 (Vic). A stamp duty calculator can provide a specific figure based on the purchase price.

The Full Exemption and Settlement Timing

The full exemption applies where the property is valued at $600,000 or less and the buyer meets the eligibility criteria. The property must be the buyer's principal place of residence. The buyer must not have previously owned residential property in Australia or held a relevant property interest. The buyer must be an Australian citizen or permanent resident. The property must be occupied as the principal place of residence within 12 months of settlement, and that occupation must continue for a continuous period of at least 12 months.

Brunswick's proximity to the CBD, its connection to tram and train networks, and its established dining and retail precincts make it a strong candidate for first home buyers who work in the city. Properties that qualify for the full exemption tend to be smaller apartments or older units requiring some updating. In our experience, buyers in this price range often weigh the benefit of zero duty against the likelihood of needing to undertake cosmetic or functional improvements soon after purchase. The exemption provides more funds at settlement, which can be allocated to those works or retained as a buffer.

The Sliding Scale Between $600,001 and $750,000

The sliding scale concession applies where the property is valued above $600,000 but does not exceed $750,000. The concession reduces progressively as the property value increases, phasing out entirely at $750,001. The calculation is set out in statute and is applied automatically by the State Revenue Office when the buyer lodges the transfer duty return and claims the concession.

A buyer purchasing a two-bedroom apartment in Brunswick for $720,000 would receive a partial concession. The buyer would pay a reduced amount of duty compared to a non-concession purchase at the same price, but the saving is smaller than it would be at $680,000, and significantly smaller than the full exemption at $600,000. The concession remains valuable, particularly when combined with other cost reductions such as avoiding Lenders Mortgage Insurance through a larger deposit or accessing the Australian Government 5% Deposit Scheme.

The sliding scale creates a situation where small differences in purchase price can have a noticeable impact on the duty payable. Buyers who are comparing properties within this band should request a specific duty calculation for each property under consideration, rather than estimating. The difference between $710,000 and $730,000 in purchase price affects both the loan amount and the duty concession, and both should be factored into the decision.

Combining the Concession with Government Guarantee Schemes

The Victorian stamp duty concession can be used alongside the Australian Government 5% Deposit Scheme, which allows eligible first home buyers to purchase with a deposit of as little as 5% without paying LMI. The property price cap in Victoria for the 5% Deposit Scheme is $950,000 in capital cities and regional centres and $650,000 in other areas. Brunswick, as part of metropolitan Melbourne, falls within the $950,000 cap.

A first home buyer purchasing in Brunswick for $720,000 with a 5% deposit would contribute $36,000, with Housing Australia providing a guarantee to the lender to cover the gap between the borrower's deposit and the 20% threshold. The buyer avoids LMI and receives a partial stamp duty concession on the same transaction. The combination reduces both the upfront cash requirement and the duty payable, which can make the difference between proceeding with a purchase or waiting to save further. Applications are made through participating lenders, not directly through Housing Australia, and our team can connect you with lenders on the panel who are actively processing applications.

Where the Concession Does Not Apply

The concession does not apply where the buyer has previously owned residential property in Australia, either solely or jointly, or held a relevant property interest such as a long-term lease or life interest. It does not apply where the property will not be the buyer's principal place of residence. Investment property purchases do not qualify, regardless of the buyer's ownership history. The concession also does not apply where the property exceeds $750,000 in value, even by a small margin.

Brunswick's median property values have increased over recent years, and many established homes now sit above the $750,000 threshold. Buyers who are targeting family-sized homes in Brunswick often find themselves outside the concession range and pay standard duty. In that situation, the focus shifts to structuring the home loan to minimise interest costs and maintain flexibility, rather than relying on duty relief to reduce the upfront burden. A City of Merri-bek mortgage broker can help assess which lenders offer the most suitable loan features for properties in that price range.

Off-the-Plan Concession for Unit Purchases

An off-the-plan duty concession applies to strata or community title contracts signed on or before 31 October 2026 for properties not yet titled or substantially completed, with duty calculated on the land value at the contract date only. This concession is available to all buyers, not just first home buyers, and applies during the eligible period. Where a buyer is purchasing an apartment or townhouse off the plan in Brunswick and the contract is signed before the deadline, duty is calculated on the land value only, not the completed property value. The land value is typically a fraction of the total contract price, which results in a substantial reduction in duty payable.

A buyer purchasing an off-the-plan apartment in Brunswick for $650,000 under a contract signed in September 2026 might have a land value apportionment of $150,000. Duty is calculated on the $150,000 figure, not the full contract price. The saving is significant and applies regardless of whether the buyer is a first home buyer or an existing owner. Where the buyer is also a first home buyer and the land value falls within the first home buyer concession thresholds, both concessions can apply, though the off-the-plan concession alone often delivers the larger saving.

Occupation and Residency Requirements

The buyer must occupy the property as their principal place of residence within 12 months of settlement and continue to occupy it for a continuous period of at least 12 months. Where the buyer fails to meet this requirement, the concession is withdrawn and the full duty becomes payable, together with penalty tax and interest. The State Revenue Office monitors compliance and may request evidence of occupation, including utility bills, correspondence, and statutory declarations.

Brunswick's rental market is active, and some first home buyers consider purchasing a property with the intention of renting it out for a period before moving in. That approach is not compatible with the concession, which requires occupation as the principal place of residence. Buyers who are uncertain about their ability to occupy the property within the required timeframe should seek advice before claiming the concession. The penalty for non-compliance is the full duty amount plus interest and penalty tax, which can exceed the original concession value.

Call one of our team or book an appointment at a time that works for you. We work with first home buyers across Brunswick and the City of Merri-bek to structure applications that align with both the Victorian concession framework and the federal guarantee schemes, and we can walk you through the eligibility criteria and timing requirements before you make an offer.

Frequently Asked Questions