Costly Mistakes and Official Sources
First home duty concession conditions: move-in rules, renting out and clawback
The occupation and ownership conditions attached to first home stamp duty concessions in each state, what triggers a reassessment and how much repaying a concession can cost.
A first home buyer duty exemption or concession is conditional. In every state you must move in within a set time (usually 12 months of settlement) and live there for a minimum period (12 months in NSW, Victoria and the ACT; rules differ elsewhere), and you must not have owned a home before. If you do not move in, rent the whole home out, or sell too early, the revenue office reassesses the duty: you repay the concession, often with interest and sometimes penalty tax, and in most states you must tell the revenue office yourself. On a $780,000 home in New South Wales, the exemption is worth $29,287, all of which can become payable.
This guide is part of costly mistakes when selling a house. The thresholds themselves are in first home buyer concessions by state.
Occupation conditions by state
| State | Move in within | Live there for | Notes |
|---|---|---|---|
| NSW | 12 months of settlement | At least 12 continuous months (contracts from 1 July 2023; 6 months for earlier contracts) | At least one buyer must meet the residence rule |
| Victoria | 12 months of settlement | 12 continuous months | Applies to the first home buyer exemption and concession |
| Queensland | 1 year of settlement (cannot be extended) | — | Cannot sell, lease or give exclusive possession before moving in; cannot rent out the whole home in the first year after moving in |
| ACT | 1 year of settlement | At least 12 months | Home Buyer Concession Scheme; at least one buyer |
| WA | Check RevenueWA | Check RevenueWA | Occupation requirement applies to the first home owner rate |
| SA | Check RevenueSA | Check RevenueSA | Relief on new homes and vacant land |
Conditions are from each revenue office as at October 2026; WA and SA conditions should be read on the official sites because they are tied to their schemes' current rules. Some states allow an extension or exemption in limited circumstances, such as Defence Force postings or family violence; Queensland's one-year move-in period cannot be extended.
What triggers a reassessment
- Not moving in within the deadline
- Moving in but leaving before the minimum period
- Renting out the whole home during the occupation period
- Selling or transferring the home during the period
- A buyer turning out to have owned residential property before
- In Queensland, demolishing the existing home before living in it
In Queensland you must notify the revenue office on the prescribed form if you do not move in within one year, or sell, transfer or lease the home in a way the rules prohibit. Other states have similar notification duties. Failing to notify can increase penalties.
How much clawback can cost
Illustrative examples using the published scales:
| Case | Concession received | Repayable |
|---|---|---|
| NSW, $780,000 home, never moved in | $29,287 exemption | $29,287 plus interest |
| Victoria, $600,000 home, moved out after 7 months | $31,070 exemption | $31,070 plus interest, unless an exemption applies |
| Queensland, $650,000 established home, rented out whole home before moving in | $15,100 (duty at home concession rates) | Duty difference plus interest and possibly penalty tax |
Interest is calculated from the date duty was originally due, so a late discovery costs more. Penalty tax is often reduced if you notify the revenue office voluntarily.
Situations that catch buyers out
Work transfer. You buy a home in Brisbane, then accept a job in Sydney before moving in. In Queensland you cannot extend the move-in deadline, so you may lose the concession. Before accepting a move, check the rules and ask the revenue office.
Renting a room. In Queensland, after you move in, renting part of the home while you still live there is allowed for leases from 10 September 2024; renting the whole home in the first year is not. Other states have their own rules on boarders.
Joint buyers. If one buyer has owned property before, the concession may be reduced or unavailable. In some states only one buyer needs to live in the home; in others all must meet conditions.
Previous ownership overseas. Queensland's test covers a residence anywhere in the world. Declaring that you have never owned when you had a flat overseas is a false declaration.
Construction delays. For vacant land or new homes, move-in deadlines may start from completion of construction rather than settlement, but there are time limits. Check before signing a building contract.
How to protect your concession
- Read the revenue office's conditions page before you sign.
- Diary the move-in deadline and the end of the minimum occupation period.
- Keep evidence: utility bills, change-of-address notices, electoral roll enrolment.
- If your circumstances change, contact the revenue office before the deadline passes.
- If you must sell or rent out early, notify the revenue office and ask about interest and penalty.
Frequently asked questions
Can I rent the home out after the occupation period?
Generally yes. Once you have met the minimum occupation requirement, the concession is not clawed back if you later rent out or sell, though capital gains tax and land tax rules then apply.
Do I lose the First Home Owner Grant too?
Grants have their own occupation conditions and can also be recovered. Check both.
What if I was overseas for work during the period?
Absence generally breaks continuous occupation unless an exemption applies. Ask the revenue office before you leave.
Does the clawback affect my credit?
A duty reassessment is a tax debt, not a credit product. Unpaid tax debts can lead to recovery action, so arrange a payment plan if needed. See complaints and disputes for objecting to an assessment.
Official sources
- Revenue NSW — First Home Buyers Assistance Scheme conditions
- State Revenue Office Victoria — first home buyer exemption and residence requirement
- Queensland Revenue Office — first home concession residence and reassessment
- ACT Revenue Office — Home Buyer Concession Scheme eligibility
- RevenueWA — first home owner rate of duty
- RevenueSA — first home buyer relief
