For dutiable transactions with a settlement date on or after 1 July 2011, land transfer duty will be reduced for eligible first home buyers purchasing a principal place of residence (PPR) valued up to $600,000. To be eligible for the duty reduction, the first home buyer must have received or be entitled to receive the First Home Owner Grant and must also reside in the property for a continuous period of 12 months commencing within 12 months of settlement.

The duty reduction of 50 per cent will be phased in over four years, with a 20 per cent reduction on 1 July 2011, followed by additional 10 per cent reductions on 1 January 2013, 1 January 2014 and 1 September 2014.