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Stamp duty in Victoria
Buying a home in Victoria? One major expense you need to pay is stamp duty – unless you buy before 1 July 2021. If you do, you can access an exemption worth up to $27,500.
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Stamp duty is a government tax imposed by each state and territory in Australia. In Victoria, you will pay stamp duty, known as land transfer duty, when you purchase a home or investment property.
Fortunately, there are concessions and exemptions to help keep costs down for first home buyers. In November 2020, changes to Victorian stamp duty were introduced that meant that buyers can now access discounts of up to $27,500.
What's in this guide?
How is stamp duty calculated in Victoria?
Many would-be homebuyers don't realise that they'll have to pay stamp duty, and it's a rude shock to realise that your dream of owning your own home might be put on the back burner due to a tax you didn't even know about.
Stamp duty isn't cheap, either – it's one of the biggest sources of income for each state and territory government. For this reason, buying a home in Victoria could cost you tens of thousands of dollars in land transfer duties.
The amount of duty payable is calculated on a sliding scale, starting at 1.4% for properties whose dutiable value is $25,000, and going up to 5.5% for properties with a dutiable value of $960,000 and above.
The dutiable value of the home is the greater of either the purchase price (including any non-monetary obligations) or the home's value on the open market.
| Dutiable value range | Duty payable |
|---|---|
| Up to $25,000 | 1.4% of the dutiable value of the property |
| $25,001 to $130,000 | $350 plus 2.4% of the dutiable value in excess of $25,000 |
| $130,001 to $960,000 | $2,870 plus 6% of the dutiable value in excess of $130,000 |
| $960,001 and above | 5.5% of the dutiable value |
Figures correct at the time of publication and subject to change. Source: State Revenue Office of Victoria
Rates may vary depending on:
- Whether you’re a foreign buyer or an Australian resident
- Whether you’re a first home buyer or not
- Whether it’s going to be your primary residence or an investment property
- Whether you’re buying land or an existing dwelling
- Whether you’re buying the property or taking possession of it in another way (e.g. receiving it as a gift, inheriting the property)
- Any other exemptions and concessions you’re entitled to, such as for pensioners
You can use a stamp duty calculator to find out how much duty may be payable. Note that this calculator does not take into account the new, temporary stamp duty discount announced in November. However, you can use this to calculate the standard amount of stamp duty that you would normally pay, then reduce it by 25-50%, depending on whether you plan to buy an established home or a new property.
VIC stamp duty calculator
Use this calculator to get an estimate of your stamp duty costs on a property in Victoria. Select VIC in the input box to ensure you get the right calculation.
First home buyer? Learn how to find the right home loan here
Are there stamp duty concessions for first home buyers in Victoria?
There’s a range of land transfer duty concessions and complete exemptions that are available.
Temporary stamp duty changes
The Victorian state budget announced in November 2020 that homebuyers a now have access to a stamp duty discount of up to 50% on purchases of residential property in Victoria.
A full 50% stamp duty discount will apply in Victoria for all buyers of newly built homes valued at up to $1 million. For those buying existing homes, a 25% stamp duty discount will apply on properties priced up to $1 million.
The exemption will be available for those who enter a purchase contract between 25 November 2020 and 30 June 2021.
The potential savings on stamp duty for Victorian homebuyers are a follows:
50% discount on new properties
| Property purchase price | Regular stamp duty for first home buyers | New stamp duty for first home buyers | Potential savings | Regular stamp duty for other buyers | New stamp duty for other buyers | Potential savings |
|---|---|---|---|---|---|---|
| $400,000 | $0 | $0 | $0 | $8,870 | $4,435 | $4,435 |
| $600,000 | $0 | $0 | $0 | $31,070 | $15,535 | $15,535 |
| $800,000 | $43,070 | $21,535 | $21,535 | $43,070 | $21,535 | $21,535 |
| $1,000,000 | $55,000 | $27,500 | $27,500 | $55,000 | $27,500 | $27,500 |
Note: The above calculations do not include transfer fees or registration fees.
25% discount on established/second-hand properties
| Property purchase price | Regular stamp duty for first home buyers | New stamp duty for first home buyers | Potential savings | Regular stamp duty for other buyers | New stamp duty for other buyers | Potential savings |
|---|---|---|---|---|---|---|
| $400,000 | $0 | $0 | $0 | $8,870 | $6,653 | $2,217 |
| $600,000 | $0 | $0 | $0 | $31,070 | $23,303 | $7,767 |
| $800,000 | $43,070 | $32,302 | $10,768 | $43,070 | $32,302 | $10,768 |
| $1,000,000 | $55,000 | $41,250 | $13,750 | $55,000 | $41,250 | $13,750 |
Note: The above calculations do not include transfer fees or registration fees.
Ongoing stamp duty exemption for first home buyers
On an ongoing basis, first home buyers in Victoria may be exempt from stamp duty on eligible purchases.
You, and your partner if applicable, must both qualify as first home buyers and be Australian citizens or permanent residents. New Zealanders on a special category visa are also eligible.
Eligible purchases
The full exemption only applies to homes with a dutiable value up to $600,000. For homes valued at $600,000 to $750,000, you can still get a partial exemption.
You must be buying your principal place of residence, so the discount is not available on investment purchases. This means you need to live in it for at least 12 continuous months, starting within 12 months of taking possession.
Here are some examples of how the Victorian stamp duty concession can help you reduce your stamp duty costs:
| Purchase price | First Home – New Home Duty |
|---|---|
| $605,000 | $1,045 |
| $625,000 | $5,428 |
| $650,000 | $11,356 |
| $675,000 | $17,758 |
| $700,000 | $24,713 |
| $725,000 | $32,141 |
Stamp duty is subject to changes so please use the above as a guide only.
Are there any other stamp duty concessions or exemptions in Victoria?
Land transfer duties are also exempt for:
- Land transfers from deceased persons to their beneficiaries
- Transfers between spouses and partners, including transfers after breakups, such as part of a divorce settlement
- Certain corporate consolidations or reconstructions
Other concessions include:
- Off-the-plan purchase concessions
- Pensioner duty exemptions or concessions
- Charity and friendly society concessions
- Young farmer exemptions or concessions
Learn more about each exemption:
How do I claim a Victorian stamp duty concession or exemption?
You can apply for an exception or concession through Victoria’s State Revenue Office.
How and when do I have to pay stamp duty?
You must complete a Digital Duties Form online to pay your land transfer duty. You can do this as a homebuyer, or your conveyancer will do it for you. You will need to register online and verify your identity.
The State Revenue Office of Victoria recommends that you complete the form and payment "at least 30 days before settlement."
This means you must have saved your stamp duty and have the funds ready to pay for it at around the same time that you save your deposit. You can not add the cost of stamp duty to your home loan.
Do I have to pay stamp duty upfront or can I pay it in instalments?
You're generally better off paying your land transfer duty upfront if you can. It is possible to set up a payment plan lasting up to 12 months, but you will be charged interest at the "market rate" plus 8%. That's a hefty rate and could see you pay a significant amount of interest.
For instance, your stamp duty bill could have an interest rate attached to it valued at around 4%. Add on the 8% margin and that's 12% interest. On stamp duty of $15,000, this would add $1,800 to your stamp duty bill.
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Important Information*Ask an Expert
Hi,
I am buying an investment property from my brother and I’m over 65 but not registered for the pension. Are there any stamp duty concessions available to me?
Thanks
Hi Theodore,
Thanks for your comment and I hope you are well. Upon reviewing the information above, the only concession you can take advantage of is the Pensioner duty exemption or concession. You can apply for this through the State Revenue Office in Victoria.
Hope this helps and feel free to reach out to us again for further assistance.
Best,
Nikki
If i purchased a property in Jan 2017 and paid stamp duty – and i would like to purchase another in 2020 > the property i purchased in 2017 was my first and i didnt receive any first home buyer benefits or concessions. Am i able to receive any exemptions and benefits to stamp duty or FHOG on my next property?
Hi Abdul,
Thanks for your comment and I hope you are doing well. Given that you are buying your second property, this means that the First Home Buyer benefits won’t apply. Hope this helps and feel free to reach out to us again for further assistance.
Best,
Nikki
Amicable separation.
Property currently owned outright in joint names.
Title to be trasferred to one of current joint names and to be used a principal place of residence.
Property value approx $1M
Any stamp duty concessions apply?
Hi Bill T,
Thanks for your question.
There are a few stamp duty exemptions and concessions possible for your situation:
1. Transfers between spouses and partners, including transfers after breakups such as part of a divorce settlement
2. The principal place of residence (PPR) concession is for properties with dutiable values up to $550,000, where the purchasers intend to use the property as their permanent residence. This means living there for a continuous period of at least 12 months after taking possession of the property.
You can apply for duty or concession through Victoria’s State Revenue Office. Hope this helps! For any further questions, feel free to reach out to us again, we’re here to help.
Best,
Nikki
Hi Team,
I have bought the land and acquired stamp duty concession on it upfront. I intend to build house on it within 12 months but if in case my circumstances change and I decide not to build the house in next 12 months. What I would have to do then? Do I need to pay back stamp duty to SRO back? If I have to give it back then would I be able to claim it back once I build the house in future?
Thanks.
Hi Abbi,
Thank you for getting in touch with Finder.
You may refer to the VIC State Revenue Office off-the-plan duty concession. You can also get in touch with them to discuss this matter.
I hope this helps.
Thank you and have a wonderful day!
Cheers,
Jeni
I and my mother wish to jointly buy a house with a value of $630,000. I have a valid disability pensioner concession card, can I apply for concession exemption on half the value ie $315,000? My mother used a pensioner concession in 2011 when her aged pensioner husband used his pensioner concession. Can she apply for a concession under the principal place of residence concession on her half ($315,000) providing she lives there with me (to care for me) for the first 12 months? Please advise, thanks!
Hi Brooke,
Thanks for getting in touch with Finder. I hope all is well with you.
While I may not be able to provide a specific answer since there are other factors that might come into play when it comes to applying for concession exemption, please note that you may be eligible for a concession if you have never claimed it before, have a concession card that is valid at the time of settlement, and is buying a home to live in. You also can’t claim the first home owners grant at the same time. You can only get the concession once.
I’m not sure if your mother would be qualified or not. I highly recommend you directly get in touch with the right person. You may also visit the VIC pensioner duty exemption or concession guide.
I hope this helps. Should you have further questions, please don’t hesitate to reach out again.
Have a wonderful day!
Cheers,
Joshua
We applied for an aged pension in early December 2018 & are waiting for a response. We have our CRN & have been told we meet the criteria for a full age pension. If we purchase a property before being in receipt of the pension, can we claim stamp duty exemption on a property? Helen
Hi Helen,
Thank you for getting in touch with Finder.
It’s recommended that you seek help from the State Revenue Office of Victoria regarding your specific query. You may send your query using their online form or call their help centre on 13 21 61 from 830am – 5pm (AEST), Monday to Friday, excluding public holidays.
I hope this helps.
Thank you and have a wonderful day!
Cheers,
Jeni
My daughter, who is a beneficiary under my will, has moved into my home with me and she wants to buy half of the property and then renovate it.. I am prepared to gift her half of the property now as it will be hers anyway!
Do I have to pay stamp duty on this transaction?
Thank you for your help
Hi Sunny-Lou,
Thank you for leaving a question.
Stamp duty is generally payable even if there is a simple transfer,
though Land transfer duties are also exempt for:
Land transfers from deceased persons to their beneficiaries
Transfers between spouses and partners, including transfers after breakups such as part of a divorce settlement
Certain corporate consolidations or reconstructions
You may want to visit Victoria’s State Revenue Office to get specific information on this since your daughter is also the rightful heir and is listed on the will.
Cheers,
Val
My father has two farm properties, the first farm properties I am the sole beneficiary hence I understand I will be exempt from stamp duty. The second property I am not a beneficiary however I have the first option to purchase at valuation price, can I obtain stamp duty exemption on this property? I have heard by puting a “stamp duty free” clause in the will will give me exemption, is this possible? Thankyou
Hi Graeme,
Thanks for your question.
Stamp duty is generally payable even if there is a simple transfer, say your father transfers a part of the farm to your name. However, depending on the value of the property, the type of property, and your personal circumstances, you may be exempt from paying this tax. Just to confirm, is your property located in Victoria? If so, in Victoria, a full exemption from duty is available on farmland valued at no more than $600,000.
While we’re not sure if putting a “stamp duty-free” clause in the will exempts you from paying the tax, it would be best to check with your local state revenue office to be sure. Meantime, it might be helpful to check a guide on stamp duty to VIC farm properties.
I hope this has helped.
Cheers,
May
I am purchasing a unit as PPR and my husband is a pensioner, can I claim exemption from stamp duty? I am listed on his pension card.
Hi Lynn,
Thank you for getting in touch with Finder.
You can claim an exemption if the home is valued at $330,000 or less or an concession (discount) if the value is between $330,001 and $750,000. Even if only one person is a pensioner you can still claim the exemption on the property up to $330,000. You may learn more detailed answers to this query at the Victorian State Revenue Office.
I hope this helps.
Please feel free to reach out to us if you have any other enquiries.
Thank you and have a wonderful day!
Cheers,
Jeni
Just wanting to know how my daughter can get stamp duty exemption if she purchases our home from us (at market value).
Hello Kerrie,
Thank you for your comment.
Please note that there are some exemptions depending on what state you live in. Upon checking, there is an exemption from stamp duty in Victoria for the transfer of property from a legal personal representative to a beneficiary (gifting a property).
Your daughter may have to check your local revenue office to confirm if she qualifies. You may want to read a guide on transferring property fees and how to avoid them.
Should you wish to have real-time answers to your questions, try our chatbox on the lower right corner of our page.
Regards,
Jhezelyn