What is a PPR Concession and Who is Eligible?

The Principal Place of Residence (PPR) concession is a stamp duty discount for Victorian homebuyers who intend to live in the property as their main home. To be eligible, the property must be valued at $550,000 or less, you must move in within 12 months of settlement, and live there continuously for at least 12 months.

But what many homebuyers don’t realise is that there are significant savings available.

Let’s break down what it is and who can claim it.

What is the PPR Concession?

The Principal Place of Residence concession is a discount on stamp duty given to homebuyers who intend to live in the property they are purchasing.

The key word here is “principal.” It must be your primary home—the main residence where you and your family will live on a day-to-day basis. The concession is the government’s way of making homeownership more affordable for genuine owner-occupiers, as opposed to property investors.

The Big Misconception: It’s Not Just for First Home Buyers!

This is the most common point of confusion we see. While first home buyers often benefit from the PPR concession, it is not exclusive to them.

Whether you’re upgrading, downsizing, or moving to a new area, if you are buying a home to live in, you may be eligible. This concession is for all eligible owner-occupiers.

Who is Eligible for the PPR Concession in Victoria?

To qualify for the PPR stamp duty concession, you must meet a clear set of criteria set by the State Revenue Office (SRO) of Victoria. Here’s a simple checklist:

• Property Value: The property must be valued at $550,000 or less to receive the full concession. (Note: A partial concession may be available for properties valued above $550,000, and this threshold can change. It’s always best to check the current rules with your conveyancer).
• Intention to Occupy: You must intend to live in the house as your primary home.
• Move-In Timeframe: You must begin living in the property within 12 months of the settlement date.
• Residency Period: You must live in the property continuously for at least 12 months to satisfy the residency requirement. If you move out before this period is up, you may be required to pay back the concession amount to the SRO.

At least one of the purchasers must satisfy these residency requirements, but all purchasers must be individuals (not a company or a trust).

How is this Different from the First Home Buyer Duty Exemption?

While they both relate to stamp duty, they are separate benefits.

• The First Home Buyer Duty Exemption/Concession is a complete exemption or significant reduction in stamp duty, but it’s only for eligible first-time buyers for properties under a certain value.
• The PPR Concession is a discount on the stamp duty payable and is available to any eligible owner-occupier, regardless of whether it’s their first home or their fifth.

If you’re an eligible first home buyer, you will receive the full First Home Buyer Duty Exemption instead of the PPR concession, as you can’t claim both.

Navigating stamp duty concessions can be complex. As your conveyancer, a key part of our role is to determine your eligibility for any concessions and guide you through the application process.

Buying a home is a significant investment. Understanding your entitlements is the first step towards a smart and successful purchase. If you’re thinking of buying a home to live in, get in touch with the team at Red Door Conveyancing today. We’ll help you understand your stamp duty obligations and ensure a smooth, cost-effective path to getting the keys to your new home. Submit a contact form or contact us on 03 8456 6797 for more details.