First Home Buyer Duty When Your Partner Owned a Home

We hear this question regularly from Melbourne couples, often while they’re comparing contracts after a Saturday inspection: ‘My partner owned a place years ago, so can we buy the new home in my name and keep the first home buyer duty exemption?’

The short answer: Usually not. Victoria’s first home buyer duty rules consider the property history of you and your spouse or domestic partner, even when only one of you will appear on the new contract or title. Ownership before 1 July 2000 can make you ineligible, while a residential property acquired on or after that date generally becomes disqualifying if the owner lived there for a continuous period of at least six months.

What is the first home buyer duty exemption in Victoria?

Eligible Victorian first home buyers pay no land transfer duty on a home with a dutiable value up to $600,000. A sliding concession applies from $600,001 to $750,000, and the benefit can apply to a new home, an established home or vacant land intended for a first home.

Dutiable value is generally the higher of the purchase price and market value.

All purchasers must generally be natural persons, at least 18, Australian citizens or permanent residents, buying at market value and purchasing the property as their home. At least one purchaser must live there for 12 continuous months, starting within 12 months of settlement. The prior ownership test also looks at each purchaser’s spouse or domestic partner.

Does my partner’s old home stop me getting the exemption?

Your partner’s old home may stop you qualifying, even if they sold it before meeting you and won’t own any share of the new property. The result turns on when the earlier Australian property was acquired and whether your partner lived in it.

The main tests are:

Ownership or part ownership of Australian residential property before 1 July 2000 generally makes the benefit unavailable.
For property acquired on or after 1 July 2000, the key question is whether the owner lived there for at least six continuous months.
Earlier grants and Victorian first home buyer duty benefits must also be disclosed.

An apartment bought in 2018 and rented from day one may be treated differently from a unit occupied by its owner for a year. The label ‘investment property’ isn’t enough. What matters is what happened.

Can we put the new home in my name only?

Putting the home in one name usually does not preserve the first home buyer duty exemption when the other person is your spouse or domestic partner. It changes legal ownership of the new home, but it does not erase the relationship or the partner’s earlier property history.

In our practice, this often appears during a contract review when one person mentions a unit bought with an ex or an inherited share that was later sold. Those details can change the duty position long after the property and earlier relationship have ended.

Buying in one name may suit lending or personal plans, but it should not be treated as a stamp duty shortcut. It can also affect borrowing, later transfers and estate planning.

Who counts as a spouse or domestic partner?

A spouse is someone you are legally married to. A domestic partner generally includes someone in a registered domestic relationship or someone you live with as a couple on a genuine domestic basis, regardless of gender.

A couple living together in a Brunswick rental may fall within the definition, while a person you are dating but do not live with will generally be in a different position unless the relationship is registered. Recent cohabitation, separation, separate homes and registered relationships should be raised before auction day because relationship status can be fact sensitive.

When can a partner’s investment property be ignored?

A residential property bought on or after 1 July 2000 may not block eligibility if your partner never lived in it as their home for a continuous six month period. This is the main exception couples should check carefully.

Useful evidence may include leases and rental statements, utility records, and electoral roll, licence or banking address records.

Do not rely on memory alone. A partner might say they ‘never really lived there’, then remember staying for seven months while renovating. Give your conveyancer the full timeline and records before signing the declaration.

Does property owned overseas count?

Overseas residential property does not, by itself, satisfy the Australian prior ownership test used for Victorian first home buyer duty and the First Home Owner Grant. A home in New Zealand, India or the United Kingdom is not Australian residential property.

Tell your conveyancer anyway because citizenship, permanent residency, foreign purchaser duty or financing questions may need separate attention. Our guide to overseas property and your first home buyer stamp duty explains the distinction in more detail.

Does the same partner rule apply to the First Home Owner Grant?

Yes. The Victorian First Home Owner Grant application requires your spouse or partner’s details even when they will not be on title, and their property and grant history is considered when eligibility is assessed.

The grant is currently $10,000 for an eligible new Victorian home valued up to $750,000. It is one payment for the eligible transaction, not $10,000 for each buyer, and the property must meet the new home rules.

A partner who received the grant anywhere in Australia will generally rule out a fresh grant. The same pre 1 July 2000 ownership and post 1 July 2000 six month occupation tests also matter. Our guide on whether both partners get the first home buyers grant covers how the payment works for couples.

How does the State Revenue Office check eligibility?

The duty process requires detailed declarations about prior ownership, occupancy, earlier grants and a spouse or partner who is not named as a purchaser. The SRO can review those answers against title, council and other records, and it may request supporting documents.

If a benefit was claimed incorrectly, the SRO can reassess the duty, and penalty tax and interest may be added. False or misleading grant information can lead to repayment and more serious consequences.

We’ve seen the stress a review causes after settlement, once savings have gone into repairs and mortgage repayments. Accurate disclosure is far easier than rebuilding an old address history later. Our guide to stamp duty clawback explains what can happen when a duty benefit is reassessed.

What duty relief may still be available?

Missing the first home buyer exemption does not always mean paying duty at the full general rate. The principal place of residence concession may still help if the home’s dutiable value is no more than $550,000 and the residence rules are met.

The PPR concession is not limited to first home buyers, so earlier ownership does not by itself prevent it. At least one purchaser must generally move in within 12 months and live there for 12 continuous months.

A later transfer between spouses or domestic partners may also be exempt where conditions such as residential use, no consideration and the residence requirement are met. Lender consent, mortgage, tax and ownership issues still need checking. Our guide to transferring property to your spouse explains the practical steps.

What should we do before signing a contract?

Check both partners’ property histories before committing. A rushed answer at an auction or deadline sale can shift the buying budget by tens of thousands of dollars.

Work through these steps:

List every Australian residential property either of you has owned or part owned, including inherited shares and property held with an ex.
Record when each interest was acquired and whether the owner lived there for six continuous months.
Check whether either person has received a First Home Owner Grant or Victorian first home buyer duty benefit.
Gather leases, rental statements, bills and address records for property said to be investment only.
Tell your conveyancer whether you are married, registered or living together as a couple.
Have the duty position checked before bidding or signing, and budget conservatively until it is confirmed.

The conveyancers at PC have handled purchases where one overlooked property changed the maximum safe offer. Buyers who check early can adjust calmly, whether that means looking farther along the train line or keeping more cash aside for duty.

Frequently Asked Questions

Can I get the first home buyer duty exemption if my partner owned a home before?

You will generally be ineligible if your spouse or domestic partner owned Australian residential property before 1 July 2000, or lived for six continuous months in an Australian home they owned on or after that date. Their history counts even when they are not on the new contract or title.

Does buying the house in my name only protect the first home buyer duty exemption?

No, not when the other person is your spouse or domestic partner. The SRO asks about partners who are not purchasers, so leaving their name off the contract does not remove their property history from the test.

What if my partner only owned an investment property?

You may still qualify if the property was acquired on or after 1 July 2000 and your partner never lived there for six continuous months. Keep leases and address records, and check the facts before signing a declaration.

Does property my partner owned overseas affect first home buyer duty?

Overseas property does not, by itself, count as Australian residential property for this test. Tell your conveyancer because residency, foreign purchaser duty and financing issues may still need checking.

What happens if we claim the exemption and get it wrong?

The SRO may reassess the transfer and require payment of the duty that should have been paid. Penalty tax and interest may also apply, and false or misleading information in a grant application can carry more serious consequences.

Who counts as a domestic partner for Victorian stamp duty?

A domestic partner generally includes someone in a registered relationship or living with you as a couple on a genuine domestic basis. Recent cohabitation or separation should be checked before relying on a particular status.

Can we still receive a duty concession if we are not eligible as first home buyers?

Possibly. The principal place of residence concession can apply to an eligible home valued up to $550,000 even when the buyers have owned property before, provided its conditions are met.

About the Pearson Chambers Conveyancing team

Pearson Chambers Conveyancing is a Melbourne focused team helping first home buyers with Section 32 statements, contracts, duty questions and settlements across Victoria. We work with buyers considering everything from inner north apartments to new homes in Melbourne’s growth corridors. Checking how each partner’s property history affects first home buyer eligibility is part of the practical work we do before clients commit.

Sources we consulted

Talk to us before you sign

A past property does not always end the conversation, but it needs to be checked properly. Pearson Chambers Conveyancing can review your contract and Section 32 statement, work through both partners’ property histories and explain which duty position appears to apply before you commit.

Email: contact@pearsonchambers.com.au

General information only, current as at the date of publication. Victorian conveyancing rules and legislation change frequently. Please contact the Pearson Chambers Conveyancing team for advice on your specific contract.