How to Reduce Stamp Duty in Australia

Can You Avoid Stamp Duty?

The short answer is no — you cannot avoid stamp duty entirely on a standard property purchase in most of Australia. It is a legislated government tax, and there is no legal way to bypass it completely when buying residential real estate. But there are several legitimate strategies that can significantly reduce the amount you pay.

The biggest savings come from government concessions that you may already qualify for. First home buyer exemptions, threshold-based discounts, off-the-plan concessions, and owner-occupier rates can each save thousands — and in some cases, tens of thousands — of dollars. The key is knowing which strategies apply to your situation and structuring your purchase accordingly.

This guide covers every major legal strategy for reducing stamp duty in Australia, with current figures for the 2025-26 financial year. Whether you are a first home buyer, an investor, or upgrading your home, at least one of these approaches is likely to apply to you.

1. Claim First Home Buyer Concessions

This is the single biggest stamp duty saving available to Australian property buyers. Every state and territory offers some form of stamp duty relief for first home buyers, and the concessions can be enormous — ranging from partial discounts to complete exemptions worth tens of thousands of dollars.

To qualify, you typically need to have never owned property anywhere in Australia (or in some states, anywhere in the world), and you must intend to live in the property as your principal place of residence for a minimum period, usually 6 to 12 months. Income and property value caps may also apply depending on the state.

As an example, a first home buyer purchasing a property at $750,000 in NSW saves approximately $29,585 compared to a standard buyer paying full duty. In Tasmania, eligible first home buyers pay zero stamp duty on purchases up to $750,000 — that is a saving of the entire duty amount. In Victoria, properties under $600,000 attract zero duty for first home buyers, with a sliding concession up to $750,000.

If you have never owned property and plan to live in the home, this concession should be the first thing you investigate. See our First Home Buyer Guide for full details on eligibility criteria and thresholds in every state.

2. Buy Below Concession Thresholds

Where possible, staying below key price thresholds can dramatically reduce your stamp duty. Many first home buyer concessions operate on a cliff-edge or sliding scale — crossing a threshold by even a few thousand dollars can mean paying significantly more duty.

Practical tip: Negotiating just $5,000 off an $805,000 property in NSW could push you back under the $800,000 exemption threshold, saving you thousands in stamp duty — not just $5,000 off the price. When you are close to a threshold, the stamp duty saving from a small price reduction can be disproportionately large.

3. Buy a New Home Instead of Established

Some states offer significantly better stamp duty concessions for purchases of new homes compared to established properties. If you have flexibility on the type of property you buy, choosing a new build over an existing home can lead to substantial savings.

Building or buying a new home also qualifies for the First Home Owner Grant (FHOG) in all states except the ACT. The FHOG is a separate cash grant (typically $10,000 to $30,000 depending on the state) paid on top of any stamp duty concession, further reducing your total upfront costs.

First home buyers may also benefit from the First Home Super Saver Scheme (FHSSS), which uses salary sacrifice into super to build a deposit tax-effectively. You can see how much tax you could save with salary sacrifice to accelerate your deposit savings.

4. Consider Off-the-Plan Purchases

Several states offer specific stamp duty concessions for off-the-plan property purchases, which reduce the dutiable value of the property and therefore the duty payable. These concessions recognise that when you sign a contract for an off-the-plan property, much of the construction has not yet occurred.

Off-the-plan concessions can save thousands, but the rules are complex and vary between states. The amount of the concession often depends on how much construction has been completed at the date of the contract. Check the specific requirements for your state using our state-by-state guide.

5. Buy in a Lower-Duty State

If you have flexibility on location — which is common for property investors — stamp duty varies significantly between states and territories. At the same purchase price, the difference in duty between the highest and lowest states can amount to thousands of dollars.

For example, on a $750,000 property, Queensland standard duty is approximately $7,000 less than Victoria for a standard buyer. The ACT also tends to have lower duty than NSW and VIC at most price points, particularly for owner-occupiers. These differences can be meaningful when you are comparing investment returns across locations.

For investors comparing states, running the numbers at your target price using our Stamp Duty by State comparison can reveal savings that meaningfully affect your yield calculations. Even within the same city, properties near state borders (such as the NSW/ACT or NSW/QLD borders) can attract very different duty amounts.

6. Negotiate the Purchase Price

Every dollar you negotiate off the purchase price also reduces your stamp duty, since duty is calculated on the higher of the purchase price and market value. This means a successful negotiation delivers a double benefit: the direct price saving plus the stamp duty reduction.

On a $750,000 property in NSW, a $25,000 price reduction saves approximately $1,125 in stamp duty on top of the $25,000 saving on the purchase price itself. In states with higher marginal rates, the stamp duty saving per dollar negotiated is even greater.

This strategy works best when the contract price aligns with or is below the property's market value. State revenue offices have the power to assess duty based on market value if they determine the contract price is artificially low. The key is genuine negotiation — not artificial deflation of the stated price.

7. Check if You Qualify for Owner-Occupier Rates

In several states, owner-occupiers pay lower stamp duty than investors. If you plan to live in the property, make sure you are claiming the correct buyer type to access these reduced rates. The savings can be meaningful — several thousand dollars in some cases.

If you plan to live in the property, double-check that your conveyancer has applied the owner-occupier rate. Errors here are more common than you might expect and can result in paying more duty than necessary.

8. Consider Buying in the ACT

The Australian Capital Territory is gradually abolishing stamp duty over approximately 20 years, replacing it with higher annual land tax (called general rates). This transition began in 2012 and is expected to be completed in the early 2030s.

In the meantime, the ACT's stamp duty schedule is already lower than comparable states for many property price points, especially for owner-occupiers. If you are considering a property purchase in Canberra or the surrounding ACT area, the upfront stamp duty saving can be significant compared to buying in NSW or Victoria.

The trade-off is that ACT property owners pay higher ongoing annual rates than they would in other jurisdictions. Over time, these higher annual costs may offset the upfront stamp duty saving, particularly if you hold the property for many years. It's worth modelling both the upfront saving and the ongoing cost difference before making a decision based solely on stamp duty.

What Doesn't Work

How Much Can You Actually Save?

The table below summarises the potential savings from each strategy, along with who it typically applies to. In practice, most buyers can combine two or more of these approaches — for example, a first home buyer in Victoria purchasing a new off-the-plan apartment under $600,000 could benefit from the FHB exemption, the off-the-plan concession, and owner-occupier rates simultaneously.

Savings are indicative and vary depending on property value, state, and individual eligibility. Use our calculator to get a precise estimate for your specific situation.