What Is Stamp Duty?
Stamp duty in Victoria is also called Land Transfer Duty.
It is an upfront fee that the state government imposes on the buyer when acquiring property in Victoria.
How To Calculate Stamp Duty In VIC
Stamp Duty Rates For Buying A Principal Place Of Residence
These rates apply when you’re buying a home, which is also referred to as your principal place of residence.
| Dutiable Value Range | Rate |
|---|---|
| $0 – $25,000 | 1.4% of the dutiable value of the property |
| $25,000 – $130,000 | $350 plus 2.4% of the dutiable value in excess of $25,000 |
| > $130,000 – $440,000 | $2870 plus 5% of the dutiable value in excess of $130,000 |
| > $440,000 – $550,000 | $18,370 plus 6% of the dutiable value in excess of $440,000 |
| More than $550,000 | The principal place of residence concessional rate does not apply. Please refer to the general land transfer duty rates |
Stamp Duty Rates For Buying A Non-Principal Place Of Residence
| Dutiable value range | Rate |
|---|---|
| $0 – $25,000 | 1.4% of the dutiable value of the property |
| > $25,000 – $130,000 | $350 plus 2.4% of the dutiable value in excess of $25,000 |
| > $130,000 – $960,000 | $2870 plus 6% of the dutiable value in excess of $130,000 |
| >$960,000 – $2,000,000 | 5.5% of the dutiable value |
| More than $2,000,000 | $110,000 plus 6.5% of the dutiable value in excess of $2,000,000 |
Stamp Duty Exemptions For First-Home Buyers In Victoria
There are concessions and exemptions available for first-home buyers.
- You enter into a contract of sale to buy your first home on or after 1 July 2017.
- You are exempted from paying stamp duty if the value of the property is $600,000 or less.
- There are stamp duty concessions available if the value of the property is between $600,001 to $750,000.
- You must fulfil the eligibility criteria of the First Home Owners Grant. However, unlike the grant, stamp duty exemption or concession is available for either new or established homes.
- You must reside in your property for a continuous period of 12 months from settlement.
VIC Stamp Duty Exemptions
- There is an exemption on the transfer of land of a deceased person to a beneficiary.
- There is an exemption for transfers between partners and spouses, which also includes a breakdown of relationships.
- There are concessions available if you’re buying a property in regional Victoria for industrial, commercial or extractive industries if you’ve entered a contract on or after 1 July 2019.
- There is an exemption if there is a transfer of the family farm.
- Young farmers who are buying their first farmland propertyare also exempt.
- Certain exemptions are available for charities and friendly societies.
- Corporate consolidation concessional relief may be available for agreements or arrangements entered on or after 1 July 2019.
- Corporate reconstruction concessional relief may be available for agreements and arrangements entered on or after 1 July 2019.
- Eligible pensioners could get a stamp duty exemption or concession if buying a property valued up to $750,000 as your principal place of residence.
- First home buyers also get stamp duty exemptions and concessions.
50% stamp duty discount to buy commercial and industrial property in regional Victoria
As part of Victoria’s government coronavirus relief measures, a 50% stamp duty concession is available for commercial, industrial and extractive industries in regional Victoria.
The discount will apply to contracts entered on or after 1 January 2021 to buy commercial or industrial property in regional Victoria.
| Property value ($) | Stamp duty before concession ($) | Stamp duty after concession ($) |
|---|---|---|
| 605,000 | 31,370 | 1,045 |
| 625,000 | 32,570 | 5,428 |
| 650,000 | 34,070 | 11,356 |
| 675,000 | 35,570 | 17,785 |
| 700,000 | 37,070 | 24,713 |
| 725,000 | 38,570 | 32,141 |
| 745,000 | 39,770 | 38,444 |
Source: Stamp duty concession for first home buyers in Victoria, OSR
Yes, as a first home buyer, there are stamp duty exemptions or concessions if you’re buying vacant land if the following conditions are met:
- You entered a contract to buy vacant land on or after 1 July 2017.
- You entered a contract to build on the land within 12 months.
- Your home is completed and ready to move into within 12 months of settlement on the contract to buy vacant land.
Please note that only the value of the vacant land is considered when assessing exemptions or concessions. The value of the building contract is not included.
What Is The Stamp Duty For Foreign Buyers In VIC?
In addition to stamp duty, a foreign buyer must also pay an additional duty rate of 8%.
Therefore, if a foreigner is buying a property in Victoria valued at $960,001 then the total duty paid would be 13.5% of the property value (5.5% stamp duty + 8% additional duty).
There are stamp-duty exemptions for foreign buyers under the following conditions:
- You are a New Zealand citizen with a special category visa (Subclass 444).
- You are a citizen or permanent resident of Australia.
- You are buying a home with a spouse/partner who is an Australian citizen, permanent resident or New Zealand citizen with a special category visa.
- Must live in the property as the principal place of residence continuously for 12 months after becoming entitled to the property.
- A foreigner acquires the property under a will.
- The property acquisition qualifies for the First Home Owners Grant.
- The property is transferred between partners (including if the property is transferred after a relationship breakdown).
FAQ: Stamp Duty Victoria
Yes, there are stamp duty concessions for off-the-plan purchases in Victoria if the following conditions are met:
- You reside in the property 12 months from the settlement date.
- The value of the property cannot exceed $550,000. If you’re a first home buyer, the value of the property cannot exceed $750,000.
Please visit this website for more information on off-the-plan stamp duty concessions in Victoria.
The buyer is responsible for paying stamp duty in Victoria.
If you’ve bought a property in Victoria, you will pay stamp duty once the sale or transfer is complete.
Your conveyancer or solicitor will lodge an application on your behalf.
Stamp duty in Victoria is usually paid at settlement.
The buyer has up to 30 days after settlement to pay for stamp duty.If stamp duty is not paid after 30 days, then penalty tax and interest might apply.
The property title will not be transferred to the buyer’s name until the stamp duty is paid.
Are You Ready To Apply For A Home Loan?
Our mortgage brokers can assess your situation and work out if you have a large enough deposit to buy a home.
They can also clarify any questions you may have about the cost of stamp duty in Victoria, transfer fees or First Home Owners Grants.
Speak to one of our specialist mortgage brokers by calling us on 1300 889 743 or fill in our free online assessment form to find out if you’re ready to buy.
