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If you’re buying your first place in Melbourne, you’ve probably had this moment: you’re on a tram scrolling listings, you spot something that might actually be in reach, and then you remember the extra costs. Stamp duty. Fees. Moving. Maybe a bit of paint. Suddenly the ‘deposit goal’ feels like it’s sprinting away from you.
So when people hear about the First Home Owner Grant (FHOG) and first home buyer stamp duty savings, the next question is almost automatic: can I use both?
Most of the time, yes, you can. They’re two separate benefits with different rules, and in the right purchase, they can sit side by side.
The trick is knowing when they line up, and when they don’t. That’s where buyers get caught out.
The quick answer (with the fine print kept human)
You can generally claim both in Victoria if:
you’re an eligible first home buyer, and
you’re buying a home you’ll live in as your principal place of residence, and
the property is within the relevant value limits, and
the home is new (because the FHOG is for new homes, not established ones).
So yes, it’s possible to get the FHOG and also pay no stamp duty (or a reduced amount). It just depends on what you’re buying and the numbers.
Two benefits, two different ‘gates’ you have to fit through
It helps to think of it like two separate doors:
Door one: the FHOG (cash grant)
In Victoria, the FHOG is a $10,000 payment for eligible first home buyers who buy or build a new home to live in. ‘New’ is important here. A tidy weatherboard in Pascoe Vale that’s been lived in for 70 years won’t qualify, even if it’s your first home.
The FHOG is available for new homes (including off the plan purchases) up to a set value cap. You also need to satisfy living requirements, which we’ll cover shortly.
Door two: first home buyer stamp duty benefits (tax saved)
This is separate from the FHOG. If you’re an eligible first home buyer in Victoria and you’re buying a place to live in:
if the dutiable value is $600,000 or less, you can get a full exemption (no duty), and
if the dutiable value is $600,001 to $750,000, you can get a concession (reduced duty).
This applies to new homes, established homes, and also vacant land intended for building your first home (with its own timing rules for moving in).
So you can see why buyers get confused. One benefit is tied tightly to a new home. The other has broader property types, but strict thresholds.
When the FHOG and stamp duty exemption can work together
Here are the common Melbourne scenarios where the two benefits can stack.
Scenario A: A new home under $600,000
This is the ‘best of both worlds’ situation:
FHOG: yes (if it’s new and meets all requirements)
Stamp duty: potentially no duty at all (if the dutiable value is $600,000 or less)
In today’s Melbourne market, it’s not the easiest bracket to find in the inner suburbs, but it can come up in pockets of the west and north, or smaller new units, or a new build in a growth corridor.
Scenario B: A new home between $600,001 and $750,000
Still very common, especially for townhouses and new apartments:
FHOG: yes (new home, within cap)
Stamp duty: reduced duty (concession applies)
Scenario C: An off the plan purchase where the duty number drops (sometimes a lot)
This one surprises people in a good way.
If you buy off the plan, stamp duty is often calculated on a lower dutiable value because certain construction costs after signing can be deducted under the off the plan concession rules. That lower dutiable value can bring you under the $600,000 exemption threshold even when the contract price is higher.
That means you might end up with:
FHOG: based on the contract price cap for the FHOG (and the home being new)
Stamp duty: based on a reduced dutiable value (after the off the plan concession is applied)
So you can be in a position where the contract price is in the mid $700,000s, yet the dutiable value comes back under $600,000 and you pay no duty. It doesn’t happen in every off the plan deal, but it’s common enough that it’s worth checking properly before you sign.
There’s also a temporary off the plan duty concession in Victoria that runs for certain contracts signed in a set period, and it is scheduled to run until 20 October 2026. If you’re looking at an apartment or townhouse off the plan, timing can really matter.
When you can’t stack them (the most common reasons)
This is where expectations need a gentle reset.
You’re buying an established home
You may still get the stamp duty exemption or concession, but the FHOG won’t apply because the home isn’t new.
Example: You buy a renovated (but not ‘new’ in the required sense) brick home in Werribee for $595,000.
You could be eligible for the stamp duty exemption, but the FHOG is usually off the table.
The property value is over the relevant caps
For first home buyer stamp duty benefits, once the dutiable value goes over $750,000, the first home buyer concession doesn’t apply.
For the FHOG, if the new home is above the cap, you won’t qualify for the grant.
You’re buying with someone who isn’t eligible
This is a big one, and it catches people who are trying to be practical.
If you buy with a partner (or anyone else) who has owned property before, you can lose first home buyer benefits. Even if you’ve never owned a home, the combined purchase matters.
It can also apply if your spouse or partner isn’t going on title but has previously owned or lived in a property they owned. People don’t always realise their partner’s history is part of the eligibility picture.
You’re buying in a company or trust
These first home benefits are aimed at natural persons buying a home to live in. Buying through a company or a trust is a different set up and usually won’t qualify for the FHOG or the first home buyer duty benefits.
The living in it requirement (yes, it really matters)
Both benefits are built around the idea that this is your home, not an investment from day one.
For the first home buyer duty exemption or concession, at least one purchaser generally needs to:
move in within 12 months of settlement, and
live there for 12 continuous months.
For vacant land, the move in timing is tied to the occupancy certificate and there is also a backstop timeframe from settlement. This is one of those details that matters if you’re building and your construction timetable slips (which, in Melbourne, happens more than people like to admit).
For the FHOG, at least one applicant needs to occupy the home as their principal place of residence for at least 12 months, starting within 12 months of settlement or construction finishing.
If your circumstances change and you can’t meet the requirement, it’s not something to ignore and hope nobody notices. These agencies can ask for evidence of occupancy, and there can be repayment obligations.
A very Melbourne example: you settle, you move in, and then six months later you get a job offer interstate or overseas and decide to rent the place out. That choice can have consequences for both the grant and your duty position.
A few real world examples (so you can picture your own situation)
Example 1: ‘We’re buying a new townhouse in the north’
You sign for a newly built townhouse for $740,000 in a northern suburb, planning to move in straight after settlement.
FHOG: possible (new home, within cap, occupancy met)
Stamp duty: reduced (since it’s between $600,001 and $750,000)
If it was purchased off the plan and the off the plan concession reduces the dutiable value, it may even shift the duty outcome again. That’s where getting the figures checked early can save real money.
Example 2: ‘We found a great older home in the west’
You buy an established home for $580,000 and it’s your first home.
FHOG: no (not new)
Stamp duty: potentially no duty (under $600,000)
It’s still a strong result. Plenty of first home buyers forget that the stamp duty saving can be worth more than the FHOG in some price ranges.
Example 3: ‘Off the plan apartment, bigger contract price’
You sign an off the plan contract for $820,000 in an inner suburb apartment building.
FHOG: likely no (contract price above the cap)
Stamp duty: you might still be eligible for first home buyer duty benefits if the dutiable value after the off the plan concession comes under the thresholds (it depends on the development and the numbers)
This is exactly why buyers shouldn’t rely on headline figures from a display suite brochure. The stamp duty outcome can be very different once the dutiable value is calculated properly.
The detail that changes the stamp duty number: dutiable value
Buyers often assume stamp duty is calculated on the contract price, full stop. In many standard sales, yes, it lines up with the price.
But in Victorian duty rules, the key number is the dutiable value. It’s generally the price paid or the market value, whichever is higher.
That matters because:
paying ‘mates rates’ can trigger a market value assessment
including non standard arrangements can raise questions
off the plan concessions can lower the dutiable value in a legitimate way
When you’re aiming for a threshold (like $600,000 or $750,000), a small difference in how value is assessed can mean a very different duty bill.
Common traps that cost first home buyers money
‘We’ll add Mum or Dad to the title later’
This can be a problem. Changing ownership after settlement is not just a casual admin step. It can trigger duty issues and it can also affect first home buyer benefits.
If family help is part of the plan, it’s worth talking through options early, not after you’ve already signed and paid deposits.
‘We’ll live there… eventually’
If you’re planning to rent it out first and move in later, that often won’t meet the residency rules for first home buyer duty benefits, and it can also affect the FHOG.
‘The agent said we’d qualify’
Agents mean well, but eligibility isn’t their job, and they won’t be the ones sorting it out if the benefit is refused or revoked.
Buying with a non citizen or non permanent resident purchaser
If you’re purchasing with someone who is not an Australian citizen or permanent resident, foreign purchaser duty can come into play. That can override the savings you thought you were getting.
Timing issues for New Zealand citizens
There are timing based eligibility rules that can affect New Zealand citizens, with a change applying for settlements on or after 26 November 2026. If this applies to you, get the details checked early so there are no surprises close to settlement.
So what should you do before you sign anything?
If you’re aiming to use the FHOG and stamp duty savings together, the best move is to line up the facts before you’re emotionally attached to the property.
A practical pre signing checklist:
Confirm whether the home is genuinely ‘new’ for FHOG purposes (and get clarity if it’s a rebuild or substantially renovated).
Check the right value figure for duty (especially for off the plan purchases).
Check every purchaser’s eligibility, and your spouse or partner’s history as well.
Read the contract and Section 32 for anything that affects timing, title, nominations, or your ability to move in when you plan to.
Make sure your finance team knows if you’re applying for the FHOG through your lender for settlement or progress payments.
It’s not about making the process heavy. It’s about avoiding the very avoidable mistake of counting on a $10,000 grant or a duty saving, then learning after you’ve committed that it doesn’t apply.
A quick word on advice
This is general information and it won’t cover every exception or special case. Your exact eligibility can turn on details like how you’re buying, who you’re buying with, whether the home is classed as new, and whether you’ll meet the residency rules.
If you’d like someone to sanity check your plan before you sign, we can help.
Ready to buy and want clarity before you commit?
At Pearson Chambers Conveyancing, we help Melbourne first home buyers understand what they can claim, what they can’t, and what needs to be done in the contract and settlement process to protect those benefits.
Get in touch for tailored guidance and a complimentary Section 32 contract review: