Stamp duty (officially called “land transfer duty” in Victoria) is one of the significant upfront costs of buying a property. Understanding how it’s calculated — and what concessions may be available — can save you thousands of dollars.
What is Stamp Duty?
Stamp duty is a state tax levied on the transfer of property. In Victoria, it’s administered by the State Revenue Office (SRO). The amount payable depends on the purchase price of the property and your circumstances.
How is it Calculated?
Stamp duty in Victoria is calculated on a sliding scale based on the dutiable value of the property (generally the purchase price or market value, whichever is greater). As purchase prices rise, so does the percentage of duty payable.
Note: Rates are subject to change. Always verify the current rates with the State Revenue Office at sro.vic.gov.au.
First Home Buyer Concessions
Victoria offers stamp duty concessions and exemptions for eligible first home buyers. Key concessions include:
- Full exemption on properties up to $600,000 for eligible first home buyers
- Reduced duty on properties between $600,001 and $750,000
Eligibility conditions apply, including the requirement that at least one purchaser must occupy the property as their principal place of residence.
Principal Place of Residence Concession
If you plan to live in the property (rather than rent it out), you may also be eligible for a PPR concession, which can reduce your stamp duty liability. Your conveyancer will advise you on eligibility and coordinate the application with your lender.
Off-the-Plan Concessions
Purchasing off-the-plan (a property not yet built) may also attract duty concessions, as duty is calculated on the purchase price minus the construction component not yet completed at the time of the contract.
Talk to Your Conveyancer
Stamp duty concessions can be complex to navigate. FC Conveyancing will advise you on what you’re entitled to and ensure the correct amounts are applied at settlement. Get in touch today.