Two ways a package is sold
- Split contract: you buy the land under a land contract and sign a separate building contract. The land settles first, then the home is built with a construction loan. Stamp duty is usually on the land only.
- Single contract (turnkey): you buy the completed home and land together, settling when it's finished. Simpler finance, but duty is usually on the full price, unless your state exempts new homes for first home buyers or, in the Northern Territory, exempts the package.
Which one you sign changes your stamp duty, your loan type, when you start paying interest and how much risk you carry during the build. See split contracts and stamp duty for the numbers in each state.
Grants and concessions for new homes
| State | First Home Owner Grant | Stamp duty on a new first home |
|---|---|---|
| New South Wales | $10,000 | None at $750,000 |
| Victoria | $10,000 | $40,070 at $750,000 |
| Queensland | $30,000 | None at $750,000 |
| Western Australia | $10,000 | $24,225 at $750,000 |
| South Australia | $15,000 | None at $750,000 |
| Tasmania | $20,000 | $28,935 at $750,000 |
| Australian Capital Territory | None | None at $750,000 |
| Northern Territory | $50,000 | $37,125 at $750,000 |
How the finance works
With a split contract, your lender approves the total (land plus build), settles the land, then pays the builder stage by stage. You pay interest only on what's drawn during the build. Your own funds usually have to go in before the lender's. See how construction loans work.
With a single contract, you usually pay a deposit when you sign and the loan settles once, at completion, like buying an established home. The approval needs to still be valid at settlement, so if the build is long, expect to have your finance reassessed.
Valuations
The lender values the package as if complete. Packages in new estates often value below the price, because of developer margin, incentives and limited comparable sales. A shortfall has to come from your own funds. See new build valuations.
Questions to ask before you sign
- Is the price fixed, and what is in the provisional sums and prime cost allowances?
- Is it one contract or two, and is either contract conditional on the other?
- What are the stage payments and the deposit (and are they within your state's legal limits)?
- Does the builder hold home warranty or building compensation insurance for this job?
- What site costs (soil, slope, retaining, services) are excluded?
- What is the expected build time, and what happens if it runs late?
- Is the land registered yet, and if not, when is it expected?
Common questions
Is a house and land package better than an established home?
It depends on your state and situation. New homes often attract grants and lower stamp duty for first home buyers, and newer homes cost less to maintain. Established homes avoid construction risk and usually have more sales evidence, which can mean fewer valuation surprises.
Do I need a bigger deposit for a house and land package?
Not necessarily, but your own funds usually go in first on a construction loan, and you need a buffer for site costs, variations and a possible valuation shortfall.
Sources
- ACT Revenue Office: about conveyance duty (house and land, off the plan, separate building contracts), checked 21 October 2026
- SRO Victoria public ruling: aggregation of dutiable transactions ('substantially one arrangement'), checked 21 October 2026
- Stamp Duty Act 1978 (NT), section 90D: house and land package exemption, checked 21 October 2026
- Queensland Revenue Office: first home (new home) and vacant land concessions, checked 21 October 2026
- RevenueSA: first home buyer relief on new homes and land, checked 21 October 2026
- Consumer Affairs Victoria: deposits and payments for building work, checked 21 October 2026
- NSW Fair Trading: contracts for residential building work (deposits, insurance), checked 21 October 2026
General information only, not credit advice. It doesn’t take your objectives, financial situation or needs into account. Rules and figures change; check them, or talk to Joshua, before you rely on them.