How Does Stamp Duty Work For Victorian Properties?
Discover the essentials of stamp duty for Victorian properties, including calculations, exemptions, and payment timelines. Learn how it impacts your property purchase.
How Does Stamp Duty Work For Victorian Properties?
Stamp duty, also known as land transfer duty, is a tax imposed by the Victorian State Government on property purchases. The amount varies depending on factors such as the property's price, location, and the buyer's eligibility for exemptions or concessions (discounts). Here's a closer look at how stamp duty works:
What Is Stamp Duty?
Stamp duty is calculated as a percentage of the property's purchase price or market value (whichever is higher). How much you pay depends on:
- The value of the property • Whether you're an owner-occupier or an investor
- If you’re a foreign purchaser (which incurs an additional surcharge)
- Eligibility for exemptions or concessions
The State Revenue Office (SRO) provides a land transfer duty calculator to estimate how much you’ll need to pay based on your circumstances.
Concessions and Exemptions
A variety of land transfer duty exemptions and concessions (discounts) are available, including for off-the-plan purchases, deceased estates, spousal transfers, young farmers, and properties in regional or corporate contexts. Special provisions exist for first-home buyers, pensioners, and those with disabilities. Eligibility depends on the property's purpose and timing of contracts. Discuss options with a conveyancer before settlement and complete all forms to ensure accurate calculations. Learn more here.
When Is Stamp Duty Paid?
Stamp duty must be paid within 30 days of settlement. Failure to do so can result in penalties or interest charges. The amount is typically collected by your conveyancer or solicitor as part of the settlement process and paid directly to the State Revenue Office of Victoria.
Stamp duty is one of the biggest upfront costs when purchasing a property, so understanding how it applies to your situation is important. For an accurate estimate of what you may need to pay, it is best to speak with a conveyancer, or use the SRO's calculator as mentioned above.
