Written by James Hurwood
Reviewed by Stephen Zeller
Last updated 09/01/2024
Don't quite understand stamp duty? You might want to watch this explainer from Selling Houses Australia host, Andrew Winter.
As our General Manager of Money, Stephen Zeller understands that homebuyers might have a lot of questions about stamp duty and how it works – with that in mind, here are his three top tips regarding stamp duty in Victoria:
Make sure to do your research, as any savings you can make on government fees could have a meaningful impact on your overall property-purchasing costs.
It can be easy to overlook or underestimate your stamp duty when totaling your homebuying costs, so make sure you’ve done your research and understand how much stamp duty you’ll likely have to pay on a given property purchase.
If you’re unsure about what possible stamp duty exemptions/concessions you might be eligible for, feel free to contact one of our expert Home Loan Specialists. They’ll be able to tell you what options may be available to you based on your own individual circumstances, as well as help you figure out how much stamp duty you might have to pay.
The amount of stamp duty a Victorian will have to pay varies based on the dutiable value of the property. It’s calculated by applying a sliding scale of taxation based on either the property’s purchase price or its market value, whichever is greater.1
Victoria has two sets of stamp duty rates: one set of concessional rates for principal places of residence and one set of general rates for non-principal places of residence/investment properties.
The thresholds for stamp duty on principal places of residence in Victoria are set by the Victorian State Revenue Office, and currently apply to contracts that were entered into on or after 6 May 2008. The current stamp duty rates for principal places of residence in VIC (as of April 2023) are listed in the table below.2
| Dutiable value range | Rate |
| $0 – $25,000 | 1.4% of the dutiable value of the property |
| > $25,000 – $130,000 | $350 plus 2.4% of the dutiable value in excess of $25,000 |
| > $130,000 – $440,000 | $2,870 plus 5% of the dutiable value in excess of $130,000 |
| > $440,000 – $550,000 | $18,370 plus 6% of the dutiable value in excess of $440,000 |
| More than $550,000 | The principal place of residence concessional rate does not apply. You’ll be charged at the relevant general land transfer duty rates. Please refer to the next table for the general land transfer duty rates. |
The general rates of stamp duty, which apply to properties not being used as a principal place of residence, apply to contracts entered after 1 July 2021 and are listed in the table below.
| Dutiable value range | Rate |
| $0 – $25,000 | 1.4% of the dutiable value of the property |
| > $25,000 – $130,000 | $350 plus 2.4% of the dutiable value in excess of $25,000 |
| > $130,000 – $960,000 | $2,870 plus 6% of the dutiable value in excess of $130,000 |
| > $960,000 – $2,000,000 | 5.5% of the dutiable value |
| More than $2,000,000 | $110,000 plus 6.5% of the dutiable value in excess of $2,000,000 |
It’s worth noting that you may be eligible for certain exemptions and concessions which can affect the price you pay. You should do your own independent research on any exemption or concession you think you might be eligible for.
In Victoria, stamp duty is payable for various types of property. You typically pay stamp duty if you purchase, acquire or otherwise become an owner of property in any way, such as through a lease, trust or gift. Stamp duty is payable on:3
However, as mentioned, VIC offers a number of different stamp duty concessions and exemptions. You may be eligible for one depending on your buying circumstances, the intended purpose of the property you’re buying (i.e. whether you’re an owner-occupier or an investor) and the value of the property in question.
Foreign buyers (whether they’re a resident, company or trust) that purchase residential land in Victoria must pay the regular stamp duty that’s applicable, plus an 8% foreign purchaser additional duty.4
You may be eligible for a stamp duty exemption or concession in Victoria as a first home buyer. As of July 2017, the Victorian Government has scrapped stamp duty for first home buyers on homes valued at $600,000 or less,5 and offers a concession for properties worth $600,000-$750,000.
Similar to how stamp duty is normally calculated, the first home buyer duty concession is applied on a sliding scale. The closer the value of your property is to $600,000, the bigger a stamp duty concession you receive. This stamp duty concession applies to new homes, established homes and vacant land.
The table below demonstrates how much you’d save on stamp duty with the first home buyer duty concession, with a principal place of residence concession, at a range of different dutiable values.
| Dutiable value ($) | Normal duty ($) | Duty after concession ($) |
| 605,000 | 31,370 | 1,045 |
| 625,000 | 32,570 | 5,428 |
| 650,000 | 34,070 | 11,356 |
| 675,000 | 35,570 | 17,785 |
| 700,000 | 37,070 | 24,713 |
| 725,000 | 38,570 | 32,141 |
| 745,000 | 39,770 | 38,444 |
The stamp duty exemption and concessions for first home buyers are also available for vacant land, but it must be bought with the purpose of building a principal place of residence on it.
Note that any stamp duty exemption or concession you receive is separate to Victoria’s First Home Owner Grant (FHOG). You may be able to receive both a first home buyer grant and a stamp duty concession or exemption depending on your buying circumstances.
You could get a stamp duty exemption if you’re an eligible pensioner and buy a property in Victoria to use as your primary residence. You’ll need to hold a valid Commonwealth concession card and, in most circumstances, need to be the primary card holder.6
Cards that are eligible include:
In addition to the stamp duty concessions and exemptions available for first home buyers and pensioners in Victoria, you may be eligible for other discounts or stamp duty waivers.3 Exemptions may be available when:
Concessions or exemptions may also be available to those who are purchasing property in regional Victoria for commercial, industrial or extractive industry purposes and those who hold a valid Commonwealth concession card.
Stamp duty is payable in Victoria within 30 days of settlement, and failure to pay within this timeframe may see you incur penalty tax and interest. Interest is charged at the market rate (which is adjusted every July) plus a premium of 8% per year on any unpaid stamp duty.
The interest rate as of July 2022 is 9%, which is the premium rate of 8% plus the current market rate of 1%.7 As an example, this means you’d incur an additional $900 in tax for every year you didn’t pay a $10,000 stamp duty bill and, depending on the circumstances, penalty tax rates could also apply.
However, it’s worth noting that if you’re buying a home with the assistance of a lender via a home loan, you’re generally required to have your stamp duty sorted and paid at settlement.
In Victoria, your bank, solicitor or conveyancer will generally arrange to pay the stamp duty on your house, land or property on your behalf. However, always check with them or request a duty statement, as you may incur fees if they don’t pay your stamp duty in time.
Stephen has more than 30 years of experience in the financial services industry and holds a Certificate IV in Finance and Mortgage Broking. He’s also a member of both the Australian and New Zealand Institute of Insurance and Finance (ANZIIF) and the Mortgage and Finance Association of Australia (MFAA).
Stephen leads our team of Home Loan Specialists, and reviews and contributes to Compare the Market’s banking-relating content to ensure it’s as helpful and empowering as possible for our readers.
1 State Revenue Office Victoria. Dutiable value of a property. 2022.
2 State Revenue Office Victoria. Principal place of residence duty rates. 2022.
3 State Revenue Office Victoria. Land Transfer Duty. 2022.
4 State Revenue Office Victoria. Foreign purchasers of property. 2022.
5 State Revenue Office Victoria. First home buyer duty exemption, concession or reduction. 2022.
6 State Revenue Office Victoria. Approved Commonwealth concession cards. 2022.
7 State Revenue Office Victoria. Interest rates. 2022.
