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Land Transfer Duty, also known as Stamp Duty in Victoria, is a fee that the state government imposes upfront when buying or acquiring property. This fee is calculated based on either the property’s value on the open market or the purchase price (whichever is greater). As a result, Stamp Duty in Victoria is calculated on a sliding scale.
If the property is valued at $25,000 or less, the Stamp Duty rate starts at 1.4%. However, if the property’s value is over $2,000,000, the rate increases to 6.5%. In between these values, the Stamp Duty rate varies depending on the property’s value.
It’s important to keep in mind that Stamp Duty is an unavoidable cost when purchasing property in Victoria, so it’s best to factor it into your budget. But don’t worry, there are tools available to help you estimate the potential cost of Stamp Duty based on the property’s value.
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 |
If you are buying or building a new home valued up to $750,000, you may be eligible for a First Home Owner Grant of $10,000.
To apply for the First Home Owner Grant, you need to submit an application to your state or territory revenue office after settlement.
This grant provides $10,000 to successful applicants but the home must not have been previously sold or lived in.
To be eligible for the grant, you must be an Australian citizen or permanent resident aged 18 years or over and be buying or building your first home.
The following link provides a questionnaire to see if you are eligible by clicking here
The FHOG is organised by your bank and usually comes in one lump sum and is paid directly into your PEXA workspace so that the funds cannot be used for something else.
These stamp duty exemptions and concessions are different to the First Home Owner Grant (FHOG) because the FHBDR & PPR provides a reduction in the amount of land transfer duty you pay whereas the FHOG is a payment that is paid to you via the PEXA workspace.
The FHBDR provides a one-off stamp duty exemption for properties with a dutiable value of up to $600,000, or a concession for a value from $600,001 to $750,000.
The PPR provides a slight stamp duty reduction for properties with a dutiable value of up to $550,000
The table below shows the result of these concession and exemptions:
Concession = Yellow
Exemption = Green
| Without PPR concession | With PPR concession | With PPR & FHBDR |
| 200,000 = 7,070 | 200,000 = 6,370 | 200,000 = 0 |
| 400,000 = 19,070 | 400,000 = 16,370 | 400,000 = 0 |
| 500,000 = 25,070 | 500,000 = 21,970 | 500,000 = 0 |
| 600,000 = 31,070 | 600,000 = 31,070 | 600,000 = 0 |
| 700,000 = 37,070 | 700,000 = 37,070 | 700,000 = 24,713 |
| 800,000 = 43,070 | 800,000 = 43,070 | 800,000 = 43,070 |
| 1,000,000 = 55,000 | 1,000,000 = 55,000 | 1,000,000 = 55,000 |
| 2,000,000 = 110,000 | 2,000,000 = 110,000 | 2,000,000 = 110,000 |
| 3,000,000 = 175,000 | 3,000,000 = 175,000 | 3,000,000 = 175,000 |
There are also other types of stamp duty exemptions, concessions, and reductions in Victoria.
These include:
If you are classed as a foreign purchaser and you acquire residential property in Victoria, as well as stamp duty, you may have to pay foreign purchaser additional duty on the share of the property you acquired.
Another example of stamp duty exemptions in Victoria is the pensioner concession, which is available to eligible pensioners buying a property valued at $750,000 or less.
From the 1st of July 2019, the additional duty rate is 8%.
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It’s important to note that these exemptions, concessions, and reductions often have specific eligibility requirements and application processes, so it’s important to do your research and seek professional advice before making any property purchases.
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If you’re a charity or friendly society, certain exemptions may be available for your property purchase.
For example, if you are a farmer looking to buy your first farmland property, you may be eligible for the young farmer’s exemption or concession.
It’s also worth noting that stamp duty exemptions, concessions, and reductions can change over time, so it’s important to stay up-to-date with the latest information from the Victorian State Revenue Office.
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To find out more about the eligibility requirements and application processes for these and other stamp duty exemptions in Victoria, it’s a good idea to seek professional advice from a licensed conveyancer or property lawyer.
The Victorian State budget 2023-24 announced a number of changes to stamp duty and land tax that effect Pensioner Card Holders.
Now (for contracts signed after 1 July 2023) you may receive:
The main change of the new rules is that the stamp duty exemption cut off has been increased from $330,000 to $600,000, but the thresholds for the pensioner and concession card duty reduction apply to the total value of the home.
It’s important to note that if you’re buying a share in a home with others, the thresholds for the pensioner and concession card duty reduction will be assessed against the total value of the home, not just the share you’re purchasing.
This means that if you buy a share in the home the thresholds are assessed against the total value of the home, not the value of any share you buy.
You could be eligible if you:
See below for the SRO stamp duty calculator
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To find out if you’re eligible for the duty reduction, you can use the stamp duty calculator provided by the SRO.
Land transfer fees are an essential aspect of the property purchasing process. These fees are imposed by the Land Titles office for the registration of title transfers and are payable by the purchaser of the property. They are an integral part of the overall cost incurred during the acquisition of a property, and it is crucial to factor them in when budgeting for a property purchase.
Moreover, these fees are not paid separately but are included in the statement of adjustments that outlines the various expenses related to the property transaction. Therefore, it is imperative to have a clear understanding of these fees and their implications to avoid any surprises in the future and in statement of adjustments.
At our City Link, we understand that finding the right solutions for your needs can be a complex process. If you have additional questions or need to speak with one of our knowledgeable representatives, we are here to help.
Our team is dedicated to providing comprehensive assistance and support, and we are always happy to extend our services and expertise to our valued clients. Please do not hesitate to contact us at any time to learn more about how we can assist you further.
