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If you’re in the process of saving up for a home in Victoria, you probably know that you need to budget for a deposit, plus additional costs like stamp duty. But if you thought Land Transfer Duty (previously “Stamp Duty”) had something to do with posting a letter, you’ve come to the right place. In this article, we’ll explain what Land Transfer Duty ty is and how it works in Victoria.
In Victoria, Land Transfer Duty is also referred to as land transfer duty and is a government tax that applies to certain transactions such as the purchase of a home. It’s calculated based on the “dutiable value” of a property, or the purchase price or the property’s value, whichever is greater.
Other than the cost of your actual property, Land Transfer Duty could be the largest cost you pay when purchasing a home in Victoria. And unlike the cost of a home, which can be loaned to you by a bank and then paid back over time, Land Transfer Duty is typically paid in-full, upfront (like a deposit). You’ll usually be asked to pay Land Transfer Duty within 30 days of settlement. So if you’re saving up for a deposit, it can be helpful to have an idea of how much Land Transfer Duty you’ll have to pay.
Similar to income tax, stamp duty is calculated on a sliding scale, rather than a set percentage or flat fee.
Our Stamp Duty calculator can help you estimate the land transfer duty, you would owe on a property in Victoria based on:
Our calculator will also factor in any potential concessions or extra duties that might apply, such as:
For more accurate results, you’ll need two key pieces of information:
This information will give the base rate, and from there the calculator will ask you the following questions to see if you could qualify for exemptions or concessions, or whether you will be asked to pay additional duty:
With this information, our calculator will estimate the amount you could pay in stamp duty fees.
In Victoria, you’ll typically still need to pay Land Transfer Duty if you’ve acquired a property via a lease or as a result of a trust or gift, or any other circumstances where a property changes from one owner to another. However, you may qualify for a concession or exemption as the beneficiary of a deceased person, or if the property is being transferred to you by your spouse or partner.
In addition to costs such as your deposit, legal fees and loan fees, there are a few other fees that can sometimes be lumped in with what you’ll pay under Land Transfer Duty. This can include:
If you’re buying a home, you may also be on the lookout for a home loan provider. We’ve partnered with Lendi to compare a range of home loans from 35+ lenders. Compare online give Lendi a call on 1300 186 260 (08:30-18:30).
Last updated: 1/04/2021