The First Home Buyer's Complete Guide to Stamp Duty and Closing Costs
- Stamp duty (now called "transfer duty" in most states) is the largest upfront cost beyond your deposit — typically 3-5% of the purchase price in major cities
- Most states offer stamp duty exemptions or concessions for first home buyers — the value and eligibility conditions vary significantly by state
- In addition to stamp duty, expect total closing costs of $3,000-$8,000+ for solicitor/conveyancer fees, building and pest inspections, lender fees, and registration costs
- In Victoria and NSW, first home buyers purchasing new builds can access more generous concessions than purchasers of established properties
- Planning for all upfront costs — not just the deposit — is essential. Many first home buyers are surprised to find their budget $15,000-$30,000 short of what is needed
The Costs Beyond Your Deposit
Most first home buyers focus intensely on saving the deposit — and that is right. But a deposit alone is not enough to complete a property purchase. The upfront costs of buying a home in Australia include stamp duty (which can rival the deposit for lower-priced purchases), legal fees, inspection costs, lender fees, and government registration charges.
Understanding these costs before you start seriously looking at properties allows you to set a realistic savings target and avoid the expensive surprise of discovering, contract in hand, that you are $20,000 short.
Stamp Duty: State by State
Stamp duty (transfer duty) is a state government tax on property transactions. It is calculated on a sliding scale based on the purchase price and varies by state, property type, and buyer status.
NSW — Transfer Duty
Standard transfer duty on a $750,000 established property: approximately $29,130.
First home buyer concessions:
- Full exemption on new and established properties up to $800,000
- Concessional rate on properties from $800,001 to $1,000,000
First Home Buyer Choice: NSW also offers eligible first home buyers the option to pay an annual property tax instead of upfront transfer duty. This can significantly reduce upfront costs but involves an ongoing annual obligation. Seek financial advice before choosing this option.
VIC — Stamp Duty
Standard stamp duty on a $700,000 established property: approximately $37,070.
First home buyer concessions:
- Full stamp duty exemption for new properties up to $600,000 (and below threshold principal place of residence rate up to $750,000)
- Established properties: 50% concession on stamp duty for purchases up to $600,000
Note: Victoria has tightened first home buyer concessions in recent years. Verify current thresholds at the State Revenue Office (sro.vic.gov.au) before budgeting.
QLD — Transfer Duty
Standard transfer duty on a $700,000 property: approximately $22,000.
First home buyer concessions:
- Full transfer duty concession for first home buyers purchasing their principal place of residence up to $550,000
- Reduced rate applies between $550,001 and $600,000
SA — Stamp Duty
Standard stamp duty on a $600,000 property: approximately $26,330.
First home buyer concessions:
- No first home buyer stamp duty exemption for established properties
- New build concession available
WA — Transfer Duty
Standard transfer duty on a $600,000 property: approximately $20,090.
First home buyer concessions:
- Full exemption on properties up to $430,000
- Concessional rate on properties from $430,001 to $530,000
Always Verify with Your State Revenue Office Stamp duty thresholds, concession eligibility, and calculation formulas change regularly. The figures above are indicative for 2025-26. Before budgeting your purchase, verify the current position at your state's revenue office website or ask your solicitor/conveyancer to confirm the exact amount.
The Full Closing Cost Checklist
Beyond stamp duty, expect the following upfront costs:
Legal/Conveyancing Fees
$800 – $2,500 depending on transaction complexity. Your solicitor or conveyancer reviews the contract, conducts title searches, prepares transfer documents, and manages settlement. Do not attempt to self-convey a property purchase.
Building and Pest Inspection
$350 – $700. A building inspection assesses the structural condition of the property. A pest inspection checks for termites and other timber pests. These are separate reports (though combined inspections are available). For established properties, both are strongly recommended — the cost of discovering a termite infestation or structural defect after settlement is orders of magnitude higher.
Strata Report (Apartments/Units)
$150 – $350. Reviews the owners corporation records including financial health, pending levies, known defects, and meeting minutes. Essential for any apartment purchase.
Mortgage Registration Fee
$120 – $200 (varies by state). The government charge to register the lender's mortgage against your property title.
Transfer Registration Fee
$50 – $600 (varies by state and property value). The charge to register the transfer of ownership on the title.
Lender Application/Establishment Fee
$0 – $600. Many lenders waive this, particularly for first home buyers. Ask your broker to confirm whether it applies.
Lenders Mortgage Insurance (if LVR > 80%)
$4,000 – $25,000+. If your deposit is less than 20% of the purchase price, LMI applies unless you qualify for a government guarantee scheme. This is the largest potential additional cost.
Loan Package Annual Fee (if applicable)
$350 – $450/year. Loans with offset accounts or package features typically carry an annual fee. Some lenders waive the first year.
Moving Costs
$800 – $3,000+. Professional removalists, truck hire, or storage.
Total Budget Examples by Property Value
| Purchase Price | Stamp Duty (NSW FHB, established) | Legal/Inspection/Registration | LMI (90% LVR) | Total Upfront Costs |
|---|---|---|---|---|
| $650,000 | $0 (exempt) | ~$3,000 | ~$10,500 | ~$13,500 |
| $750,000 | $0 (exempt) | ~$3,200 | ~$12,500 | ~$15,700 |
| $850,000 | ~$33,000 | ~$3,500 | ~$15,000 | ~$51,500 |
| $1,000,000 | ~$40,435 | ~$4,000 | ~$18,000 | ~$62,435 |
NSW first home buyer thresholds applied. LMI based on 90% LVR. Figures are approximate. Always get exact quotes for your specific situation.
Government Grants Available to First Home Buyers
In addition to stamp duty concessions, most states offer cash grants to first home buyers purchasing new builds or vacant land for construction:
- NSW First Home Owner Grant: $10,000 for new builds valued up to $600,000 (land + building)
- VIC First Home Owner Grant: $10,000 for new builds or substantially renovated homes in metropolitan areas; $20,000 in regional Victoria
- QLD First Home Owner Grant: $30,000 for new builds entered into before 30 June 2025 (reduced thereafter)
- WA First Home Owner Grant: $10,000 for new builds
Federal scheme: The First Home Guarantee (5% deposit, no LMI) and the Help to Buy scheme (shared equity) are separate from state grants and can be combined with them in some cases. See our full guide to first home buyer schemes.
Frequently Asked Questions
Is stamp duty part of my deposit or on top of it?
Stamp duty is in addition to your deposit. Your deposit is paid from your savings to the vendor. Stamp duty is paid to the state government. Both come from your savings — so your total required savings is deposit + stamp duty + other closing costs.
Can stamp duty be included in my home loan?
No. Lenders do not allow stamp duty to be capitalised into a home loan. It must be paid from your own funds at settlement.
Can I use the First Home Super Saver Scheme (FHSSS) for these costs?
Yes. FHSSS allows you to release up to $50,000 in voluntary super contributions (made since 1 July 2017) for a first home purchase. Released funds can be used for any purchase cost including stamp duty.
Written by Luke Drake | Authorised Credit Representative (CRN: 565112) | Frontier Finance Co