Stamp Duty VIC

What is stamp duty? 

All throughout Victoria, stamp duty is a tax from the government and managed by the State Revenue Office of Victoria. This stamp duty (also known as land transfer duty in Victoria) kicks in when you’re sealing the deal on a home. This is often based on the property’s “dutiable value,” which can be the purchase price or the property’s value. 

How much is stamp duty in Victoria? 

In Victoria, stamp duty isn’t playing games – it’s often the heavyweight champ among all the states and territories. While it could make things easy and roll with a flat fee, it doesn’t. Nope, it’s a percentage game, and the percentage depends on a bunch of factors. 

First off, the SRO is eyeing the property’s value – the bigger the house, the heftier the stamp duty hit. Stamp duty also takes a different turn depending on what kind of property you’re snagging – be it a house, apartment, or just a piece of vacant land.  

Long story short, the stamp duty scene in Victoria is a complex mix of percentages, property types, residency statuses, and buyer eligibility, but this table should clear things up a touch. Check out the rates for your place of residence:¹State Revenue Office – Principal Place of Residence Duty Rates 

When do I need to pay stamp duty in Victoria? 

Seeing as over 6 million people live in Victoria,²abs.gov.au – Snapshot of Victoria there’s a lot of properties which change hands every year. According to the SRO, it’s about 200,000 properties actually!³State Revenue Office – Land Transfer Duty  

Stamp duty must be paid when you purchase: 

• a home (including your first)
• an investment property or holiday home
• primary production land with or without water entitlements
• a business (including land and goods)
• fixtures, including tenant’s fixtures 

Stamp duty is also payable when you acquire property or interest in a property through a lease, a trust or as a gift.  

Do first home buyers have to pay stamp duty in VIC? 

Yes, but it depends on a few things. 

• the value of the property
• what you’re planning to do with the property (is it your primary residence etc.)
• if you are a foreign buyer
• your eligibility for any exemptions (see more below) 

Are there stamp duty exemptions or concessions in VIC? 

Victoria’s got a few tricks up its sleeve when it comes to giving you a head start on those property costs. The big one is the First Home Owner Grant (FHOG) – a cool $10,000 waiting for you if you’re diving into the world of new homes and your place is valued up to $750,000.  

Depending on your home’s value, what you plan to do with it, and your residency status, you might just get some exemptions or concessions to ease that stamp duty hit. 

Here’s the lineup: 

First-home buyer duty exemption or concession

This is for a principal place of residence valued up to $600,000 or a discount for a PPR between $600,001 and $750,000. This one’s different from the FHOG – it’s like a discount on the stamp duty bill, not a cash prize.

Off-the-plan concession

Eyeing an off-the-plan property? Whether it’s a land and building package or a spruced-up lot, there’s a duty concession waiting for you.

Pensioner concession

If you’re a pensioner looking at a new or established home valued at up to $750,000, a one-off duty exemption or concession is heading your way.

Principal place of residence concession

Planning to make that property your main address? Enjoy a duty concession if your buy is valued at up to $550,000.

First-home owner with family exemption or concession

If your property is valued at $200,000 or less, and you have a family, you’re entitled to a one-off duty exemption or concession.

Young farmer’s exemption or concession

Calling all young farmers buying their first piece of farmland – there’s a one-off duty exemption or concession just for you. 

Do foreign buyers have to pay stamp duty in VIC? 

As of 1 July 2019, rate of additional duty for foreign buyers is 8%. This is on top of stamp duty, as managed by the State Revenue Office of Victoria, to be payable if you are a foreign individual purchaser, trust or corporation.

Can I get a Home Loan that covers stamp duty? 

Whether or not stamp duty is covered by your home loan is determined by your lender. Some lenders may offer to cover the stamp duty by increasing the amount of your home loan. 

Where can I find and compare Home Loans? 

If you’re diving into the wild world of home-buying, chances are you’re hunting down a home loan like a pro. Lucky for you, we’ve teamed up with the folks at Lendi to make this journey a whole lot easier. 

Imagine this: a smorgasbord of home loans from not one, not two, but a whopping 25+ lenders. No need to go on a wild goose chase. Just head online and check it all out.