What is stamp duty in VIC?
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 the most expensive of all states and territories for stamp duty. The land transfer duty in VIC is charged as a percentage of the property’s value. A concessional rate applies to new residential properties under $550,000 if you live at the address for at least 12 months. There are different stamp duty rates for principal places of residence 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 value of the property |
$25,000 - $130,000 | $350, plus 2.4% of the value above $25,000 |
$130,000 - $960,000 | $2,870, plus 6% of the value above $130,000 |
$960,000 - $2,000,000 | 5.5% of the value of the property |
$2,000,000 | $110,000, plus 6.5% of the value above $2,000,000 |
$500,000 vs $750,000 property stamp duty example calculation in VIC
| Property price | Owner-occupier stamp duty | Investment stamp duty |
|---|---|---|
$500,000 | $21,970 | $25,070 |
$750,000 | $40,070 | $40,070 |
Generally, first-home buyers of properties under $750,000 pay a reduced stamp duty rate in Victoria.
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 VIC 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 VIC, 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).
How do you pay stamp duty in VIC?
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.
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