Buyer’s guide · Victoria
Stamp duty in Victoria: what every buyer needs to know
Stamp duty is often the biggest cost of buying in Victoria after the deposit. Here’s how it’s calculated, the exemptions and concessions you may qualify for, and when it must be paid.
Land transfer duty, usually called stamp duty, is a tax you pay to the State Revenue Office (SRO) when you buy property in Victoria. On a typical home it runs to tens of thousands of dollars, so it’s worth understanding early, before you set your budget or sign a contract of sale.
The good news is that many buyers pay less than the standard rate. First home buyers, owner-occupiers buying at lower values, pensioners and buyers of off-the-plan apartments and townhouses can all qualify for exemptions or concessions. This guide explains how duty works and which savings may apply to you.
Key takeaways
- Duty is calculated on the dutiable value, which is the price you pay or the property’s market value, whichever is greater.
- On the general rates, a $750,000 property attracts duty of $40,070, and a $1 million property $55,000.
- First home buyers pay no duty up to $600,000 and reduced duty between $600,001 and $750,000, if they meet the eligibility and residence rules.
- A temporary concession for off-the-plan apartments, units and townhouses applies to contracts signed before 21 April 2027, with no value cap.
- Duty is usually paid at settlement, but you have up to 30 days after settlement to pay it.
On this page
How stamp duty is calculated
Duty is calculated on a sliding scale based on the dutiable value of the property. The dutiable value is the greater of the price you pay and the property’s market value. For most arm’s length purchases, that’s simply the contract price.
These are the general rates that apply to contracts signed on or after 1 July 2021:
| Dutiable value | Duty |
|---|---|
| $0 to $25,000 | 1.4% of the dutiable value |
| $25,001 to $130,000 | $350 plus 2.4% of the value over $25,000 |
| $130,001 to $960,000 | $2,870 plus 6% of the value over $130,000 |
| $960,001 to $2,000,000 | 5.5% of the total dutiable value |
| Over $2,000,000 | $110,000 plus 6.5% of the value over $2,000,000 |
Worked examples
- $750,000: $2,870 + 6% of $620,000 = $40,070.
- $1,000,000: 5.5% of $1,000,000 = $55,000.
The SRO’s land transfer duty calculator will work out the duty on a specific purchase, including most concessions.
The principal place of residence concession
If you’re buying a home to live in, you may get a lower rate under the principal place of residence (PPR) concession. It only applies to properties with a dutiable value of more than $130,000 and up to $550,000. Above $550,000, the general rates apply.
| Dutiable value | PPR duty |
|---|---|
| $130,001 to $440,000 | $2,870 plus 5% of the value over $130,000 |
| $440,001 to $550,000 | $18,370 plus 6% of the value over $440,000 |
For example, on a $500,000 home the PPR concession brings duty down to $21,370, compared with $25,070 at the general rates, a saving of $3,700. You generally need to move in within 12 months of settlement and live there for at least 12 continuous months.
First home buyer exemption and concession
If you’re buying your first home, the first home buyer duty exemption or concession can save you the most. If the dutiable value is:
- $600,000 or less, you pay no duty
- $600,001 to $750,000, you pay a reduced amount on a sliding scale
- over $750,000, no first home buyer relief applies.
The property can be a new or established home, or vacant land you plan to build your first home on. For vacant land, the dutiable value is the value of the land only, not your building contract.
Who is eligible
- Every buyer must be an individual (not a company or trust), aged 18 or over, buying at market value as their home.
- At least one buyer must be an Australian citizen, New Zealand citizen or permanent resident.
- Neither you nor your spouse or partner can have already received a First Home Owner Grant or first home buyer duty relief, owned a home in Australia before 1 July 2000, or owned and lived in a home for 6 continuous months since then.
You must live in it
At least one buyer must move in within 12 months of settlement and live there for 12 continuous months. If you buy vacant land, you must move in by the earlier of 12 months after the occupancy certificate is issued and 36 months after settlement. Current serving members of the Australian Defence Force who are enrolled to vote in Victoria are exempt from the residence requirement.
Watch out
- Your spouse or partner’s property history counts, even if they aren’t buying with you.
- If you buy with someone who isn’t a citizen or permanent resident, foreign purchaser additional duty may apply.
- If you don’t meet the residence requirement, the SRO can reassess the duty and charge interest and penalties.
Off-the-plan concessions
A temporary off-the-plan concession lets you deduct the construction costs still to be incurred after you sign the contract from the dutiable value. Duty is then calculated on the reduced amount.
- It applies to apartments, units and townhouses in a strata subdivision with common property, such as a shared driveway.
- It’s available to all buyers, including investors, companies and trusts, and there’s no value cap.
- It applies to contracts signed on or after 21 October 2024 and before 21 April 2027. The settlement date doesn’t matter.
- It doesn’t apply to house-and-land packages outside a strata subdivision with common property. Those may still qualify for the older off-the-plan concession for first home buyers and owner-occupiers.
Using the SRO’s own example, if you sign a $1 million contract before construction starts and $400,000 will be spent on construction, the dutiable value drops to $600,000. Duty at the general rates falls from $55,000 to $31,070. Other concessions, such as first home buyer relief, can then apply to the reduced value.
The concession has already been extended twice. Whether it will be extended again is uncertain, so if you’re considering an off-the-plan purchase, check the contract date carefully.
Other concessions and extra duty
- Pensioners and concession card holders buying their home may qualify for a duty reduction. For contracts signed on or after 1 July 2023, it offers the same value as the first home buyer exemption and concession. It’s a once-only benefit, and you can’t combine it with first home buyer relief on the same purchase.
- Foreign purchasers pay foreign purchaser additional duty of 8% of the dutiable value of residential property, on top of ordinary duty. The off-the-plan concession doesn’t reduce it.
- Commercial and industrial property is moving to an annual property tax in place of stamp duty under reforms that started on 1 July 2024. Talk to us if you’re buying property used for business.
When and how duty is paid
Duty is usually paid at settlement, but you have up to 30 days after settlement to pay it. Late payment can attract interest and penalty tax, and the title won’t be transferred into your name until duty is paid.
Most transactions now settle electronically. Your lawyer or conveyancer completes a Digital Duties Form through the SRO’s Duties Online system, claims any concessions, and the duty is paid from the settlement funds. If you’re borrowing, make sure your lender and broker have allowed for duty in your loan or your own funds well before settlement. Our guide to finance conditions explains how to protect yourself if your loan isn’t approved in time.
Before you sign
- Work out your duty using the SRO calculator and build it into your budget.
- Check whether you qualify for first home buyer, PPR, pensioner or off-the-plan relief, and gather the evidence you’ll need.
- If you’re buying with a partner or family member, check everyone’s eligibility, including their citizenship and property history.
- Ask us to review the contract and confirm the duty position before you commit.
Frequently asked questions
How much is stamp duty on a $700,000 home in Victoria?
At the general rates, duty on $700,000 is $37,070. If you’re an eligible first home buyer, you’ll pay a reduced amount under the sliding-scale concession. The SRO calculator will give you the exact figure.
Do first home buyers pay stamp duty in Victoria?
Not if the dutiable value is $600,000 or less and you meet the eligibility and residence rules. Between $600,001 and $750,000 you pay a reduced amount. Above $750,000 the full rates apply.
Can I add stamp duty to my home loan?
Some lenders will lend enough to cover duty, depending on your deposit and borrowing capacity. Speak with your lender or broker early, because the funds need to be available at settlement.
What if I don’t move in within 12 months?
If you claimed first home buyer or PPR relief and don’t meet the residence requirement, you must tell the SRO. It can reassess the duty and charge interest and penalty tax.
Is the off-the-plan concession only for first home buyers?
No. The temporary concession for strata apartments, units and townhouses is open to all buyers, including investors, for contracts signed before 21 April 2027.
Need help with stamp duty?
Talk to our property team
Property & Conveyancing
Our team can review your contract, confirm the duty you’ll pay, apply for the concessions you’re entitled to and handle settlement, wherever you are in Victoria.
This article is general information only and is not legal advice. It reflects Victorian law at the date of publication. Please contact us for advice about your circumstances.
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