Looking to buy a home in Victoria? Then you’ve probably come across the term stamp duty and been surprised by just how much it can cost. It is often one of the largest upfront costs homebuyers may encounter and can potentially add thousands to the total cost, depending on the property value.
What many people don’t realise is that there are ways to reduce how much you pay, depending on your circumstances. Understanding how stamp duty works, exploring potential exemptions or concessions, and planning ahead could help reduce costs and ease your buying journey.
In this guide, Unconditional Finance will break down everything you need to know about stamp duty in Victoria and explain how we can help you approach your next property purchase with confidence and clarity.
What Is Stamp Duty in Victoria?
Stamp duty, also known as land transfer duty, is a government tax that typically applies when you purchase a home or land in Victoria. The amount is based on the property’s dutiable value, which is generally the higher of either the purchase price or the market value at the time of transfer. This tax goes directly to the Victorian State Revenue Office (SRO) and helps fund public services like roads, schools, and hospitals.
Stamp duty may apply to a wide range of property transactions, including:
- Buying a new or established home
- Purchasing vacant land
- Acquiring an investment property
- Securing a commercial or rural property
Even if you’re buying your first home, stamp duty may still be payable. However, there are generous exemptions and concessions available that could reduce the amount, depending on your situation.
How Much Is Stamp Duty in VIC?
The amount of stamp duty you’ll pay in Victoria depends on several key factors:
- The dutiable value of the property (usually the price you pay)
- Whether the property is intended to be your main home or used as an investment
- Your eligibility for any concessions or exemptions, such as first home buyer benefits or pensioner discounts
For a general idea, here’s a snapshot of the standard rates:
| Property Value | Approx. Stamp Duty Payable |
| $500,000 | ~$21,970 |
| $750,000 | ~$40,070 |
| $1,000,000 | ~$55,000 |
How Is Stamp Duty Calculated?
Stamp duty in Victoria is calculated as a percentage of the property’s purchase price, with tiered rates that increase as the property price rises. In simple terms, the more expensive the property, the higher the rate of duty you’ll likely pay.
For off-the-plan purchases, a concession may apply depending on when the contract is signed and how much construction is complete.
To estimate what you might pay, visit the SRO Victoria website or use our Stamp Duty Calculator for a quick and accurate estimate based on your property details.
Stamp Duty Exemptions and Concessions in Victoria
If you are purchasing property in Victoria, you might not need to pay the full amount of stamp duty. Depending on your situation, there are several exemptions and concessions that may reduce the cost or, in some cases, remove it entirely.
1. First Home Buyer Exemption or Concession
First home buyers in Victoria may qualify for a full exemption from stamp duty on properties valued up to $600,000, while those purchasing a home priced between $600,001 and $750,000 could receive a concessional rate.
To access this benefit, the property must be used as the buyer’s principal place of residence, with occupancy required within 12 months of settlement and for a continuous period of at least 12 months. These concessions can offer substantial savings, making it easier for first-time buyers to manage associated costs such as moving, furnishing, or undertaking small improvements.
2. Principal Place of Residence (PPR) Concession
Even if you’re not a first home buyer, you may still be eligible for the PPR concession if you’re planning to live in the home you’re purchasing. This can reduce the amount of duty payable on homes valued up to $550,000, subject to eligibility and approval.
Like the first home concession, you’ll need to occupy the home as your primary residence within 12 months and live there for at least a year to maintain eligibility. This option is particularly useful for buyers upgrading, downsizing, or returning to the owner-occupier market.
3. Pensioner Concession
Pensioners with a valid concession card may qualify for a one-time stamp duty exemption or concession when buying a home to occupy as their primary residence. A full exemption may apply for properties valued up to $330,000, while a concessional rate is available for homes priced up to $750,000.
This can make a meaningful difference for older Australians who are downsizing or transitioning into a more suitable living arrangement, helping to reduce the financial burden of purchasing a new home.
4. Off-the-Plan Concession
The Off-the-Plan Concession offers eligible buyers the opportunity to reduce stamp duty by calculating the duty based only on the land value and the partially completed construction at the time the contract is signed. This can lead to considerable savings, particularly during the early stages of development.
To access this concession, the property must be intended as the buyer’s principal place of residence, and the contract must meet specific eligibility criteria relating to timing and location.
A temporary expansion of this concession is in place until 21 October 2025, applying to new residential builds in select Melbourne council areas. This is designed to support buyers looking to secure a new-build home while reducing their upfront purchasing costs.
5. Other Concessions
Depending on your situation, you may also be eligible for one of the following:
- Family Farm Exemption – for the transfer of farms between family members.
- Young Farmer Duty Exemption or Concession – for buyers under 35 purchasing farmland.
- Charitable Institutions – exemption for eligible charities acquiring property.
- Special Disability Trusts – duty relief when a property is acquired for a person with a severe disability.
For a full list of eligibility criteria, required documentation, and application processes, visit the State Revenue Office of Victoria or speak with our mortgage brokers.
Temporary Waivers and Policy Updates
The Victorian government occasionally introduces short-term stamp duty concessions to support buyers and stimulate the property market. One example was the 2021–22 waiver for newly built homes, which helped reduce costs during a time of economic uncertainty.
Currently, a temporary off-the-plan concession is available for new residential builds priced up to $1 million in certain Melbourne council areas. This initiative runs until 21 October 2025 and may offer substantial savings for eligible buyers.
What Is the Digital Duties Form?
In Victoria, all property transfers must be lodged using the Digital Duties Form via the State Revenue Office (SRO) portal. This online process ensures that stamp duty is assessed accurately and must be completed before settlement.
Your conveyancer or solicitor typically manages the submission, but you’ll need to provide key details such as the signed contract of sale, proof of identity, and information about how the property will be used. To avoid delays or errors, it’s important that everything is submitted correctly.
How and When Do You Pay Stamp Duty?
In Victoria, stamp duty is generally due within 30 days after settlement. This amount is usually arranged and paid as part of the settlement process by your solicitor or conveyancer, who will ensure the correct payment is lodged with the State Revenue Office.
Delays in payment can lead to penalty interest charges and may cause legal complications, which can affect the settlement timeline. Having an experienced team supporting you throughout the process helps ensure everything runs smoothly and that your obligations are met without unnecessary stress.
Can You Get a Refund or Reassessment?
A refund or reassessment of stamp duty may be available if you have overpaid or if your circumstances have changed since settlement. This could apply if the property becomes your principal place of residence, if you later qualify for a concession, or if the contract is cancelled or does not proceed. Claims must be submitted within five years of payment and must include the necessary supporting documents.
Applying for a Stamp Duty Exemption or Refund
If you’re eligible for a stamp duty exemption, concession, or refund, you’ll need to apply through the State Revenue Office (SRO) Victoria portal. The process is mostly online, but it does require careful attention to detail.
In most cases, you’ll need to provide:
- A completed Digital Duties Form
- Documents that show you’re eligible, such as a concession card or a statutory declaration
- The contract of sale and relevant settlement information
Processing times can vary, so submitting accurate documents as early as possible is important. Missing paperwork or delays in lodgement could affect the outcome of your application.
While you can complete the process yourself, working with a mortgage broker can help ensure everything is submitted correctly and on time. Contact us today!
How a Mortgage Broker Can Help You Plan for Stamp Duty
Stamp duty is one of the larger upfront costs in the homebuying process, and it often surprises buyers who are focused on deposits and loan approvals. A mortgage broker can help you understand stamp duty and plan for the cost with confidence.
Here are some of the ways a broker can support you:
✅ Provide guidance on how much stamp duty you may need to set aside based on your property type and price.
✅ Assist in identifying any exemptions or concessions you could qualify for, such as those available to first home buyers or off-the-plan purchasers.
✅ Integrate stamp duty into your overall finance strategy, ensuring it aligns with your savings and borrowing capacity.
✅ Collaborate with your conveyancer to make sure forms are lodged correctly and payments are made on time.
✅ Keep you informed about current government incentives or temporary changes that may affect your stamp duty amount.
Let’s Take the Stress Out of Stamp Duty Together
Stamp duty is a major cost when buying property in Victoria, and understanding how it works can make a big difference to your budget and planning. Knowing what you might pay, what concessions could apply, and when payment is due helps you avoid surprises and make confident decisions.
A mortgage broker can provide valuable support by helping you plan for stamp duty, identify any concessions you may qualify for, and manage key deadlines throughout the buying process.
Speak with Unconditional Finance today to take the stress out of stamp duty and move forward with confidence.
Frequently Asked Questions (FAQs)
Stamp duty itself is not immediately tax deductible when you buy an investment property. However, certain parts of the cost, like stamp duty on the loan (if applicable), may be claimed as borrowing expenses over five years.
The main portion of stamp duty paid on the purchase is generally added to the cost base of the property, which may reduce your capital gains tax (CGT) when you sell.
Most lenders require stamp duty to be paid upfront and separately from your home loan. It is usually not included in the loan amount. However, if you have enough equity or a large enough deposit, some lenders may allow you to borrow extra funds to cover stamp duty. This depends on your financial situation and the lender’s policies.
Yes, stamp duty can still apply when a property is gifted or inherited, depending on the circumstances. For gifted properties, stamp duty is generally assessed based on the property’s market value at the time of transfer, even if no payment is made.
In the case of inheritance, there may be exemptions or concessions, particularly when the property is passed on under a valid will or as part of a deceased estate. It’s important to check specific eligibility requirements with the State Revenue Office.
In some cases, yes. For example, with off-the-plan purchases, the amount of stamp duty can change depending on how much construction is completed at the time the contract is signed. Changes in eligibility for concessions (such as first home buyer status or principal place of residence use) can also affect the final amount payable. It’s important to provide accurate and updated information during the settlement process.
For commercial properties, the stamp duty rates in Victoria are similar to residential rates, but some concessions available to homebuyers (like first home buyer exemptions or PPR concessions) do not apply.
Additionally, commercial and industrial property purchases may involve different contract terms and more complex valuations, which can affect how stamp duty is assessed. The process still involves submitting a Digital Duties Form and paying within 30 days of settlement.
