The Ultimate Guide to Property Stamp Duty in Victoria: Updated for 2024

As an experienced real estate agent, I know that understanding stamp duty—also known as land transfer duty—is crucial when planning your property purchase in Victoria. This guide provides up-to-date information on how stamp duty is calculated, exemptions and concessions, and the latest reforms effective in 2024.

What is Stamp Duty?

Stamp duty is a tax levied by the Victorian government on property transactions, including purchases and ownership transfers. The amount you pay is based on the dutiable value of the property, which is the greater of:

1. The purchase price, or

2. The market value of the property at the time of the transaction.

How is Stamp Duty Calculated in Victoria?

Victoria uses a progressive rate system, meaning the rate of duty increases as the property’s value rises. The current rates are:

Dutiable Value Range	Stamp Duty Payable
$0 – $25,000	1.4% of the dutiable value
$25,001 – $130,000	$350 plus 2.4% of the dutiable value over $25,000
$130,001 – $960,000	$2,870 plus 6% of the dutiable value over $130,000
$960,001 – $2,000,000	5.5% of the dutiable value
Over $2,000,000	$110,000 plus 6.5% of the dutiable value over $2,000,000

Key Updates for 2024

1. Commercial and Industrial Properties

From 1 July 2024, commercial and industrial property buyers will transition from paying a one-time stamp duty to an annual property tax. The tax rate will be 1% of the unimproved land value. Buyers during the 10-year transition period can choose to:

• Pay stamp duty upfront, or

• Opt for a government-facilitated loan to pay over 10 years with interest.

2. Off-the-Plan Concessions

The Victorian Government has introduced a temporary concession for off-the-plan purchases:

• For contracts signed between 21 October 2024 and 21 October 2025, buyers can deduct post-contract construction costs from the dutiable value, reducing stamp duty payable.

• This applies to off-the-plan apartments, townhouses, and units.

To know more about, 《Victorian Government’s Temporary Off-the-Plan Duty Concession: A Game-Changer for Buyers and Developers》

Exemptions and Concessions

Several exemptions and concessions can significantly reduce your stamp duty liability:

First Home Buyers

• Full exemption: For properties valued up to $600,000.

• Concession: For properties valued between $600,001 and $750,000, duty is reduced on a sliding scale.

• Must occupy the property as the principal place of residence for at least 12 months.

Principal Place of Residence (PPR) Concession

• Concession applies to properties valued up to $550,000 intended as the buyer’s primary home.

Pensioner Concession

• Eligible pensioners may receive exemptions or concessions for homes valued up to $750,000.

Foreign Purchaser Surcharge

• An additional 8% surcharge applies to foreign purchasers of residential property.

To know more about，《First Home Buyers Guide: Navigating Australia’s Grants and Incentives》

When Do You Pay Stamp Duty?

Stamp duty must be paid within 30 days of the property settlement or transfer of ownership. Failure to pay on time may result in penalties and interest.

How to Estimate Your Stamp Duty

The State Revenue Office (SRO) of Victoria provides an online calculator to help buyers estimate stamp duty payable. You can access it here:

Stamp Duty Calculator

Q&A: Frequently Asked Questions

1. Who Can Apply for the Concession?

All purchasers, including foreign buyers, are eligible. However, the Foreign Purchaser Additional Duty (FPAD) applies to the property’s full value before the concession is calculated.

2. What Types of Properties Qualify?

Eligible properties include apartments and townhouses with common property areas. House-and-land packages are excluded unless part of a strata subdivision.

3. Is This Concession in Addition to Other Benefits?

Yes! First-home buyers and owner-occupiers can choose between this concession or existing schemes to maximize their savings.

4. How Long Is the Concession Available?

The concession applies to contracts signed between October 21, 2024, and October 20, 2025.

5. How Can I Apply?

Applications are typically managed by your conveyancer, solicitor, or financial institution through Duties Online.

6. Why Is This Concession Introduced?

It’s part of a government initiative to stimulate housing construction, improve affordability, and support economic growth.

Tips for Managing Stamp Duty

1. Understand Your Eligibility: Research exemptions and concessions that apply to your situation.

2. Plan Ahead: Budget for stamp duty early to avoid surprises at settlement.

3. Stay Updated: Stamp duty policies and rates can change; check government websites for the latest updates.

4. Seek Professional Advice: A conveyancer or solicitor can guide you through the complexities of stamp duty and ensure you maximize available concessions.

Stamp duty is a significant cost when purchasing property in Victoria, but with careful planning and knowledge of available concessions, you can reduce its impact. Whether you’re a first-home buyer, an investor, or looking to purchase off-the-plan, staying informed about stamp duty policies will help you navigate the property market with confidence.

For personalized advice tailored to your property needs, feel free to reach out. As an experienced real estate agent, I’m here to help you achieve your property goals while staying on top of your financial commitments.

Disclaimer: The information provided in this blog is for general guidance only and does not constitute financial, legal, or tax advice. Always consult a qualified professional for advice specific to your circumstances.