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A Comprehensive Guide to Stamp Duty in Victoria

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Thinking about buying or selling a home in Victoria, but aren’t sure what stamp duty is all about? Stamp duty or land transfer duty is a tax that the state government charge you when you buy or have a home transferred over to you.

Not only is the property market competitive for a home buyer, but it’s helpful to understand stamp duty and how it can affect you financially when purchasing a new home. If you’re unsure about how to pay stamp duty, this guide will inform you of everything you need to know!

How do I calculate stamp duty in Victoria?

If you’re wondering how to configure stamp duty in Victoria, you can use a stamp duty calculator. Start by entering how much your home costs, choose Victoria as your state, select live-in if you’re buying a home, investment for an investment property, or vacant land if you’ve decided to build on a lot. If you haven’t owned a home previously, click first home buyers as an option. You may not need to pay stamp duty!

When do you pay stamp duty or land transfer duty in Victoria?

When buying a home as a home buyer, you need to pay attention and pay stamp duty by the due dates. In Victoria, stamp duty is generally payable at settlement of your property. It is important that you budget for stamp duty on top of your deposit and other expenses which may include property inspections, moving costs and other expenses that come with moving into a new property.

Can I get a stamp duty exemption in Victoria?

Do you want to save a bit extra on your overall property costs and have reduced stamp duty? Stamp duty concessions are available by the Victorian government. Due to the First Home Concession Rate, those eligible for the First Homeowners Grant can acquire a home buyer exemption, meaning you get an exemption on homes purchased with a dutiable value of up to $600,000. A home that is purchased with a dutiable value of $600,001 to $750,000.00 may receive a concession. Residing in the home for up to 12 months can also qualify you. Properties with a dutiable value of higher than $750,000 aren’t eligible for the exemption stamp duty.

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How much stamp duty do I have to pay in Victoria?

Are you a home buyer that is confused by all the numbers associated with stamp duty in Victoria? With stamp duty rates, you pay a percentage of the value of the property, and this fee depends on the property you’ve decided to buy. So, how much is stamp duty payable for eligible first home buyers or a primary residence investment property?

What is stamp duty for foreign buyers in VIC?

How much stamp duty do you need to pay if you are from overseas? The State Revenue Office, deem purchasers that are not  an Australian citizen, permanent resident of Australia, or New Zealand citizen to be a foreign purchaser.

Compared to an Australian home buyer, any form of transaction, contract, or agreement completed by a foreign buyer after 1 July 2019 requires 8% of the property value, which is known as the foreign purchaser’s additional duty or foreign buyers’ duty.

These added costs apply when buying a residential property, buying a non-residential property, an established home, being given property as a gift, buying vacant land, or particular leasing agreements.

Can I get an exemption or concession as a foreign buyer?

A stamp duty discount may apply you if you’re buying with your partner or spouse who must be an Australian Citizen. The property must be used as your principal place of residence and you must reside in the property for a continuous period of 12 months with a partner who is an Australian citizen.

What about stamp duty refunds?

Have you overpaid stamp duty on a property because you didn’t apply for a full exemption? Don’t stress! Five years after duty is paid, you can apply for stamp duty refunds or a reassessment.

To do this, you’ll need to get all required information such as full contact details of the buyer, details of the certificate of title or transfer of land documents, details of the transaction, documents proving that you’re eligible for a refund, and bank account details so you can receive the deposit. Next, complete The Duties Refund Smart Form and lodge it online.

Alternatively, contact Complete Conveyancing Solutions to assist you with applying for the refund on your behalf.

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Is there a stamp duty concession for off-the-plan purchases?

Are you interested in a house and land package or off-the-plan purchases? Stamp duty concessions may apply which is all dependent on the type of property being purchased. Off-the-plan concessions are available for property that will used as your Principal Place of Residence.

Can I claim more than one stamp duty concession in Victoria?

Yes, you can claim as you may be eligible for many types of stamp duty concessions. Eligible pensioners can also acquire a duty exemption for a home of $330,000 or less, or a concession fee for properties valued up to $750, 000.

You must first meet the eligibility criteria, must hold a valid concession card at the settlement date, have never received a pensioner stamp duty concession prior, buy the property at the purchase price, and intend to live in the home as a principal place of residence.

Conveyancing with Complete Conveyancing Solutions

At Complete Conveyancing Solutions, we assist you with all of your stamp duty inquiries in the state of Victoria. Whether you want to understand a property’s market value, are a home buyer, or need clarity on stamp duty exemptions, we can offer you professional conveyancing services.

Maria Tomlinson holds an unrestricted conveyancing licence together with Professional Indemnity Insurance against civil liability. Maria Tomlinson commenced her career in Conveyancing in 2001. She furthered her studying by completing her Diploma in Conveyancing in 2017 which has led her to hold an unrestricted Conveyancing License and successfully open her conveyancing firm, Complete Conveyancing Solutions.

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