Stamp Duty in Victoria Explained: A Simple Guide for Property Buyers

Stamp duty in Victoria – officially called land transfer duty – is usually the biggest cost after your deposit when you buy property. It is a state tax, collected by the State Revenue Office (SRO), and it is normally paid at settlement. Understanding how it works helps you budget accurately and make sure you claim every exemption or concession you are entitled to.

This guide explains how stamp duty in Victoria is calculated, who can pay less, and what your conveyancer does to get it right.

What Is Stamp Duty in Victoria?

Stamp duty is a tax on the transfer of land, including houses, units, apartments and vacant land. In Victoria it is charged on the higher of the purchase price or the market value of the property, using a sliding scale – the more expensive the property, the higher the rate. Duty is assessed through the electronic Duties Online system and paid as part of settlement on PEXA.

The State Revenue Office Victoria publishes the current rates and an online calculator, which is the best place to get an estimate for your purchase.

How Stamp Duty in Victoria Is Calculated

Four main factors affect how much stamp duty you pay:

• Dutiable value – generally the purchase price or market value, whichever is higher.
• Type of buyer – first home buyers, pensioners and foreign purchasers are treated differently.
• Use of the property – whether you will live in it as your principal place of residence.
• Timing and type of purchase – off-the-plan and some new-home purchases may qualify for concessions.

Because thresholds and rates change, always check the SRO calculator rather than relying on figures from older articles.

Stamp Duty Exemptions and Concessions

First home buyers

Eligible first home buyers in Victoria may pay no stamp duty, or a reduced amount, if the purchase price is under set thresholds. You usually need to live in the property for a continuous period after settlement. See the SRO’s first home buyer information and read why first home buyers need a conveyancer.

Off-the-plan purchases

An off-the-plan concession may let you deduct construction costs incurred after the contract date from the dutiable value. Eligibility has changed several times in recent years, so check the current rules before you sign. Learn more about off-the-plan conveyancing.

Pensioners and family transfers

Eligible pensioners may receive a duty exemption or concession, and some transfers between spouses or domestic partners may be exempt. Transfers between other family members are usually dutiable on market value.

Foreign purchasers

Foreign purchasers usually pay an additional duty on top of the standard rate when buying residential property in Victoria.

When Is Stamp Duty Paid?

For most purchases, stamp duty in Victoria is paid at settlement. Your conveyancer completes a duties form, the SRO assesses the duty, and the amount is included in the settlement figures on PEXA. Your lender may fund it as part of your loan or you may contribute it from savings.

How Your Conveyancer Helps With Stamp Duty in Victoria

• Checks your eligibility for exemptions or concessions before you sign.
• Prepares and lodges the duties form accurately.
• Includes the correct duty amount in the settlement statement.
• Flags commitments such as residence requirements that come with concessions.

Getting stamp duty wrong can mean paying too much, or facing interest and penalties later. Our conveyancing services in Melbourne include duty lodgement as standard, and our conveyancing fees guide explains the other costs to budget for.

Stamp Duty Examples and Budgeting Tips

Because stamp duty in Victoria rises steeply with the property price, small changes in price can mean a noticeable change in duty. When you set your budget, work out the stamp duty for your maximum price, not just your target price. That way, a competitive auction or negotiation will not leave you short at settlement.

• Use the SRO calculator for each price point you are considering.
• Check concession eligibility early – especially if you are a first home buyer or buying off the plan.
• Ask your lender whether stamp duty can be included in your loan.
• Keep a buffer for transfer and mortgage registration fees, which are separate from stamp duty.

Common Stamp Duty Mistakes to Avoid

The most common mistakes we see are buyers assuming they qualify for a first home buyer exemption without checking the conditions, forgetting that a partner’s previous property ownership can affect eligibility, and not realising that duty is generally based on market value when buying from a family member. Another frequent issue is moving out of a property too soon after claiming a concession that requires you to live there for a set period.

Your conveyancer checks these points before you sign and before the duties form is lodged. If you are transferring property within the family, see our guide to transferring property to a family member. For new homes, read about house and land packages, where stamp duty is usually only payable on the land.

Frequently Asked Questions