Stamp Duty in Victoria

You've heard your friends and family who have purchased a property, complain about stamp duty. But what is it, and do you need to worry about it?

Simply, stamp duty is a tax that is charged when you buy land. It is a tax paid by the purchaser of a property.

The amount of stamp duty you pay varies based on:

1. The value of the property
2. If you are a first home buyer or not
3. If you intend to use the property as your Principal place of residence
4. If you are an Australian resident or a foreign resident

In Victoria, stamp duty is based either on the purchase price or the property's open market value (whichever is greater). The rate is determined on a sliding basis, starting at 1.4% for properties valued at less than $25,000 and increasing to 5.5% for properties valued at or more than $960,000.

To get an estimate of how much you will pay, see the table below, or calculate your stamp duty with the Stamp Duty Calculator.

A temporary concession on properties valued up to $1 million was announced by the Victorian government for the contracts signed before 30 June 2021. Visit the website of the Victorian State Revenue Office to learn more about stamp duty exemptions and concessions and to find out whether you qualify for one, or learn more about the numerous exclusions and concessions for residential property transfer duties here.

Further, a range of concessions are available for commercial property buyers. Read our article for more information on stamp duty concessions and exemptions.

<table class="table"> <thead> <tr> <th scope="col">Stamp duty scale</th> <th scope="col">How much stamp duty do I pay in Victoria?</th> </tr> </thead> <tbody> <tr> <td>$0 to $25,000</td> <td>1.4% of the dutiable value of the property</td> </tr> <tr> <td>$25,001 to $130,000</td> <td>$350 + 2.4% of the dutiable value in excess of $25,000</td> </tr> <tr> <td>$130,001 to $960,000</td> <td>$2,870 plus 6% of the dutiable value in excess of $130,000</td> </tr> <tr> <td>More than $960,000</td> <td>5.5% of the dutiable value</td> </tr> </tbody> </table>

This tax is paid to the State revenue office of Victoria. It is paid at the time of settlement of your property. The instances where the duty is payable are outlined below;

1. When you purchase a property from a Vendor
2. When you receive an interest in the property through a
   • Lease
   • Gift
   • Declaration of trust
   • Transaction changing the legal owner of the property
   • Or an agreement granting you an economic right in a property
3. When shares are sold in a company or unit trust that owns the land
   • If the land assets of the company/trust are more than $1 million

<p>The amount of stamp duty you pay—or whether you pay any at all—depends on what you plan to do with your property. For first home buyers or individuals who intend to make their property their primary residence, may qualify for such concessions.</p> <p>&nbsp;</p> <p><em>In the state of Victoria, if you are a first-time purchaser and the property you wish to purchase&nbsp;is under $600,000, you may qualify for a 100% stamp duty exemption. On the other hand, a stamp duty concession is available for residences priced between $600,001 and $750,000.</em></p> <p>&nbsp;</p> <p>A temporary concession on properties valued up to $1 million was announced by the Victorian government for the contracts signed before 30 June 2021. Visit the website of the Victorian State Revenue Office to learn more about stamp duty exemptions and concessions and to find out whether you qualify for one, or learn more about the numerous exclusions and concessions for residential property transfer duties&nbsp;here.</p> <p>Further, a range of concessions are available for commercial property buyers. Read our&nbsp;<a href="https://settlehub.com.au/hg">article</a>&nbsp;for more information on stamp duty concessions and exemptions.</p> <p>&nbsp;</p> <p><strong>Contact us today to understand your Stamp Duty obligations and responsibilities if you are planning to buy a property in the state of Victoria.</strong></p>