Overview of Stamp Duty

Stamp duty, also called land transfer duty, is a tax charged by the government when buying property in Victoria. It’s a key cost to factor in when purchasing property, as it can add significantly to the overall price.

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How Is Stamp Duty Calculated?

Stamp duty is based on the dutiable value of the property, which is typically the higher of the purchase price or the market value. The rates vary depending on the value of the property, with thresholds set by the Victorian State Revenue Office (SRO).

For example:

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• Properties valued between $130,001 and $960,000 incur a base fee of $2,870 plus 6% of the amount above $130,000.

• Properties above $960,000 attract higher rates.

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Concessions and Exemptions

Depending on your situation, you may qualify for certain concessions or exemptions, such as:

• First Home Buyers: If you’re a first home buyer, you could be eligible for a full or partial exemption on properties under specific thresholds.

• Principal Place of Residence (PPR): If the property will be your primary home, you might pay a reduced stamp duty rate.

• Off-the-Plan Purchases: Buying off-the-plan could result in lower stamp duty, as it’s calculated based on the value of the land and construction at the contract date.

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Why Stamp Duty Matters

Knowing how much stamp duty you’ll need to pay is essential for budgeting when buying property. To calculate your exact costs, you can use the State Revenue Office’s online calculator, or seek advice from a professional.