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Introduction

If you're an eligible first home buyer, you have the choice to pay:

  • an annual property tax based on the land value of the property, or
  • an upfront transfer (stamp) duty based on the purchase price of the property, and land tax (where applicable).

The First Home Buyer Choice initiative will lower the upfront costs of home purchases for first home buyers who choose to opt in. 

There is a transitional period where you'll need to pay stamp duty and then apply for a refund of the duty after 16 January 2023.

You can use the First Home Buyer Choice Calculator to help you compare the estimated property tax (for the first year) and stamp duty.

Eligibility

Anyone can use the calculator, but you're eligible for the First Home Buyer Choice initiative if:

  • you're an individual (not a company or trust) aged 18 or over
  • you, or at least one person you're buying with, are an Australian citizen or permanent resident
  • you or your spouse have not previously:

Property requirements

  • Eligible properties include a house, townhouse, strata unit, company title unit, flat, duplex or a vacant block of residential land intended as the site of a first home.  

  • A property is not eligible if it includes a business or business premises or is the site of a holiday home. 

  • The value of the property (dwelling) you're buying must not exceed $1.5 million. If you're buying vacant land, it must not exceed the value of $800,000. 
  • You must move into the property within 12 months of purchase and live in it continuously for at least 6 months.

What you need

  • property purchase price   
  • address for the property or estimated land value
  • property usage (owner-occupied or investment)
  • property details (property with a new or existing dwelling).

How to calculate

  1. Select the ‘Calculate’ button.
  2. Follow the prompts to estimate your property tax liability.
  3. Compare the estimated property tax (for the first year) and stamp duty. 

More information

  • The property tax calculator only provides an estimate of property tax payments for the first year of ownership. The property tax rate will be annually indexed to ensure property tax remains affordable.
  • The calculator is provided as a tool only and what option is best for you will depend on your individual circumstances. Where necessary you should seek independent financial advice. 

  • You can use the First Home Buyers Assistance Calculator to help check your eligibility for other first home buyer grants and assistance.

  • For more information, you can:
Last updated: 14 November 2022