What is stamp duty in Victoria?
Stamp duty in Victoria (VIC), or land transfer duty, is a state government tax buyers must pay when acquiring property and other personal or business assets like vehicles.How much is stamp duty in VIC?
Victoria is generally one of the most expensive of all states and territories for stamp duty. Land transfer duty is calculated on a sliding scale based on the property’s dutiable value. A concession rate applies to principal place of residence (PPR) properties valued up to $550,000, provided the purchaser moves in within 12 months of settlement and occupies the property for at least 12 continuous months.
Stamp duty rates can differ between principal place of residence purchases and investment properties.
Stamp duty costs in VIC will vary depending on:
- The property's value
- The type of property you purchase (e.g. house, apartment, vacant land)
- Whether you're buying a home or investment property
- Your residency status
- Your eligibility as a first-home buyer
- Your eligibility for pensioner concessions
General stamp duty rates in VIC
| Property value | Stamp duty payable |
|---|---|
$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 |
$2,000,000 + | $110,000 plus 6.5% of the dutiable value in excess of $2,000,000 |
$750,000 vs $1,000,000 property stamp duty example calculation in VIC
| Property price | Owner-occupier stamp duty | Investment stamp duty |
|---|---|---|
$750,000 | $40,070 | $40,070 |
$1,000,000 | $55,000 | $55,000 |
Generally, first-home buyers of properties under $750,000 pay a reduced stamp duty rate in Victoria. As you can see in the table below, there isn’t much of a concession for first-time buyers on properties closer to the $750,000 mark.
First-home buyer stamp duty rates in VIC
| Property value | General stamp duty | 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 |
Who pays stamp duty in VIC?
Anyone buying property must pay stamp duty in Victoria unless they are eligible for an exemption. This includes properties gifted or acquired by a company or under a trust. It’s important to note that stamp duty is an additional cost to your deposit and property price.
If you're buying a property in Victoria, your conveyancer may take care of the paperwork and lodge the payment with the revenue office on your behalf. Be sure to budget for stamp duty or ask your lender to increase the principal amount of your home loan to account for stamp duty. This will increase your home loan repayments.
When is stamp duty in VIC payable?
In VIC, stamp duty is payable within 30 days of settlement. Late payment penalties apply. You can also choose to pay stamp duty on the day of settlement via electronic fund transfer (EFT).
Money.com.au’s analysis shows stamp duty can end up costing more than double its original amount once interest is factored in over a typical 30-year mortgage.
Using the median dwelling value, homebuyers in Melbourne would pay an additional $98,451 if stamp duty is added to the mortgage and repaid over 30 years. Buyers in the rest of Victoria would still pay an extra $65,737 over the life of the loan once interest is factored in.
How do you pay stamp duty in Victoria?
Stamp duty can be paid by direct deposit, cheque, credit card, and other major payment options. In most cases, you’ll receive a notice from the State Revenue Office VIC delivered to the address of the purchased property or by email. This letter will often contain:
- The amount of stamp duty payable
- Details on the tax and how it was calculated
- Concessions or exemptions included in the calculation
- Payment options
- Payment due date
- Information regarding late payments and associated penalties or charges
- Reference details for the notice and payment
What are the stamp duty exemptions in VIC?
There are a few stamp duty exemptions and concessions available in Victoria, including:
First-home buyer exemption
Full stamp duty exemption applies for first homes valued under $600,000. There’s also a $10,000 first-home buyer grant in VIC that may help further reduce the cost of buying a home.
Spouse or partner exemption
Transfers of a principal place of residence between spouses are exempt from stamp duty.
Deceased estate exemption
Exemptions apply for transfers of primary residence following a person’s death (if the transfer meets certain conditions).
Family farm exemption
Exemptions apply to transfers of farming land to family members or relatives.
Pensioner concession
Eligible pensioners and concession cardholders may pay a reduced transfer duty when purchasing a home valued between $600,001 and $750,000.
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