Eligible Victorian first home buyers may pay no land transfer duty on a home with a dutiable value up to $600,000, or reduced duty from $600,001 to $750,000. Eligibility and dutiable value must be checked before treating that saving as part of your Melbourne purchase budget.
What do the current thresholds cover?
The State Revenue Office’s first home buyer guidance covers qualifying new or established homes and vacant land intended for a first home. Dutiable value is generally the higher of price and market value; eligible off-the-plan purchases can involve an adjustment.
Applicant, citizenship or residency, previous ownership and previous benefit rules apply, including relevant spouse or partner history. Generally, at least one purchaser must occupy the home for 12 continuous months within 12 months of settlement; vacant land has different timing. Check the full rules and any exceptions with your conveyancer. A duty benefit and the First Home Owner Grant are separate forms of assistance.
Build the budget in two stages
First, list the purchase price, deposit contribution, expected borrowing and all purchase costs. Second, add each possible benefit only after its eligibility, amount and timing have been checked. This makes it easier to see which part of the budget depends on an unresolved assumption.
For each cost or benefit, record a figure, its source, the date checked and who will confirm it. Keep estimated figures visibly marked until confirmed.
A three-column planning example
Imagine comparing two properties. Create columns for “property A”, “property B” and “still to confirm”. Include:
- The proposed purchase price and the dutiable value used for the calculation.
- The duty estimate for your exact circumstances.
- Legal, inspection, lending and moving costs.
- Cash required at each contractual stage and at settlement.
- The savings you plan to retain after the purchase.
Do not copy a duty figure from one property to the other just because the asking prices are close. A change to the property, purchaser details or available concession may change the calculation. Use the official calculation process with your conveyancer.
Questions to resolve before an offer
- Has every purchaser’s and relevant partner’s history been checked?
- Is the proposed home and occupancy plan consistent with the rules?
- Which value has been used, and does any adjustment need confirmation?
- Which documents and declarations are required?
- Who will lodge the application and confirm the settlement figures?
Does being a first home buyer guarantee no duty?
No. “First home buyer” is not enough on its own. The value and eligibility requirements need to be met. Do not rely on a selling agent’s general statement about concessions as a determination of your entitlement.
Can I use an expected saving as my deposit?
Keep a reduction in a purchase cost separate from cash available to pay a deposit. Ask your conveyancer and broker to map when money is required and when any benefit is applied. This avoids a timing gap even where the overall budget appears to balance.
Turn the estimate into a finance plan
Explore our first home buyer services and contact Absolut Financial to discuss your deposit and borrowing plan. If you are considering a first home in Balwyn, our Balwyn mortgage broker page explains how our nearby Kew East team can help with the finance process. If you are buying an apartment, also review our valuation and deposit shortfall guide.
Information checked 29 September 2026 against SRO guidance updated 15 September 2026. General information only, not a determination of tax eligibility or personal advice. Confirm the rules for your transaction before committing.