In Victoria, you must pay land transfer duty (previously known as stamp duty) on the transfer of land from one individual to another. The amount of duty depends on the value of your property, how you use it, if you are a foreign purchaser, and if you are eligible for any exemptions or concessions.
How Stamp Duty is calculated in Victoria
Stamp duty calculation for Principal Place of Residence:
| Dutiable value range | Duty Rate |
| $0 – $130,000 | The Principal place of residence (PPR) concessional rate does not apply. |
| > $130,000 – $440,000 | $2,870 plus 5 per cent of the dutiable value in excess of $130,000 |
| > $440,000 – $550,000 | $18,370 plus 6 per cent of the dutiable value in excess of $440,000 |
| More than $550,000 | The Principal place of residence (PPR) concessional rate does not apply. |
Stamp duty calculation for Non-Principal Place of Residence:
| Dutiable value range | Duty 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 Exemption in Victoria
- New residential properties within the City of Melbourne with a dutiable value up to $1 million are eligible for a 50% stamp duty concession or exemption.
- Transfers between partners and spouses, including those resulting from relationship breakdowns, are exempt from stamp duty.
- Transfers of the family farm also qualify for a stamp duty exemption.
- First-home buyers can benefit from stamp duty exemptions and concessions.
Stamp Duty Exemption in Victoria for First Home Buyer
There are exemptions and concessions on stamp duty available for first-home buyers in Victoria. These benefits are subject to certain conditions.
To qualify for the exemptions and concessions, you need to fulfil the following requirements:
- The contract of sale for your first home must be signed on or after 1 July 2017.
- If the value of the property is $600,000 or less, you will be completely exempt from paying stamp duty.
- If the value of the property falls between $600,001 and $750,000, you may be eligible for stamp duty concessions.
- It is necessary to meet the eligibility criteria for the First Home Owners Grant. However, unlike the grant, stamp duty exemptions or concessions are applicable to both new and established homes.
- You must reside in the property continuously for a period of 12 months starting from the settlement.
How much is the stamp duty concession available for first-home buyers in Victoria?
The stamp duty concession amount varies based on the value of the property and operates on a sliding scale. The closer the property value is to $605,000, the more significant the savings on stamp duty concessions. Here are some examples of stamp duty amounts before and after the concession for different property values:
| Property value ($) | 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 |
Understanding Stamp Duty in different states in Australia
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Ben Gu is a Chartered accountant, registered tax agent, registered ASIC agent, SPAA specialist advisor and CA SMSF specialist with experience across a wide range of tax and business.
