Updated 2 July 2018 to reflect recent changes to VIC Stamp Duty.
Read this article if you want to learn about calculating Stamp Duty in Victoria.
If just want to find out how much stamp duty you’ll pay, use this online stamp duty calculator.
Important points to note about VIC Stamp Duty
- Home Buyers get a concession read more below.
- First Home Buyers can get an exemptions or concession, you can read more below.
This article is intended as a useful short-cut resource that you can come back to when you’re searching for anything to do with VIC Stamp Duty, we’ll keep it updated and link off to the official government sites and resources too.
Standard Rate of VIC Stamp Duty (Transfer Duty)
Stamp Duty really is just a tax for nothing in return.
If you’re purchasing as an investor you’ll always pay the full amount of duty.
Here’s how to calculate the VIC stamp duty:
|Your Purchase Price||Standard Rate of VIC Stamp Duty|
|$0 – $25,000||1.4% of the property value|
|$25,001 – $130,000||$350 plus 2.4% of the amount over $25,000|
|$130,001 – $960,000||$2870 plus 6% of the amount over $130,000|
|More than $960,000||5.5% of the property value|
VIC Stamp Duty Discounts
There are various VIC stamp duty exemptions or concessions, in here you’ll find all the details of the most common so that you can see whether or not you may be eligible.
Concessions for Home Buyers
Home Buyers in Victoria, are eligible for a concession of the stamp duty when the purchase price is up to $550,000 and you intend to occupy the property as your Principal Place of Residence (PPR) within the first year of ownership.
If your purchase price is over $550,000 you lose the concession eligibility completely.
How to calculate the stamp duty concession for home buyers in Victoria:
|Purchase Price||Concessional Stamp Duty Rate for PPR||The Standard Rate||Your Saving for PPR|
|$2870 plus 5% of|
amount over $130,000
|$2870 plus 6%|
of amount over
|1% rate reduction|
|$18,370 plus 6% of|
amount over $440,000
|Saving of $3,100|
Use the online stamp duty calculator to find out how much you’ll pay.
First Home Buyers in Victoria
From the 1st July 2017, First Home Buyers will receive additional incentives when purchasing brand new or established property.
- For purchases up to $600,000 you’ll receive an exemption of stamp duty.
- And if you’re purchasing between $600,000 and $750,000 there will be a discount.
- All purchasers must meet the First Home Owners Grant eligibility criteria.
The rate of VIC stamp duty for amounts between $600,000 – $750,000 will be a sliding scale, and your concession amount will be reduced as you exceed $600,000.
|Your Purchase Price||Regular Stamp Duty||New Stamp Duty|
To calculate your concessional rate of stamp duty use the stamp duty calculator.
If you’d like more information on the FHOG in Victoria, click here.
The off-the-plan concession is calculated on the improved value of the property at the time of contract.
From 1 July 2017, it’s only available when you buy a home.
You can also claim this concession in addition to other exemptions or concessions that you may receive.
For example, if you’re purchasing a house and land package as a home, and construction has already commenced. You’d be liable for the stamp duty with the PPR concession. Additionally, to determine the value of the property at time of contract, you would deduct the value of the works yet to be completed, and this would provide you with the current improved value of the land.
Foreign Investors pay the full rate of stamp duty, plus an additional duty of 7% of the purchase price.
Other Exemptions or Concessions of VIC Stamp Duty
There’s quite a few other scenario’s where you could be eligible for an exemption or concession of the stamp duty. Such as:
- Pensioner exemption or concession
- Young Farmer exemption or concession
- Exemptions for charities and friendly societies
If you’re interested in searching some of these other duty exemptions and concessions, you can read more on the government website.
What Other Government Fees Will I Pay?
There are many possible fees that you could encounter, depending on the nature of your transaction, however in this article we’ll address only the 3 you’re most likely to encounter during a property transaction.
- Transfer Registration
- Mortgage Registration
- Mortgage Discharge Registration
In the Victorian State Budget each year, the Treasurer will announce changes to the fees.
VIC Transfer Registration fee (when a ‘transfer of ownership’ is occurring)
When you purchase a property, there is a legal document that transfers the ownership of that property in to your name.
And the transfer of ownership has to be registered, and the State Government charges a fee for managing the register.
How to calculate the Transfer Registration fee in Victoria from 1 July 2018:
- $96.10 + $2.34 for every whole $1000 portion of the Purchase Price
- Maximum fee is $3,606
VIC Mortgage Registration fee (when you are borrowing money)
The mortgage gives the bank the right to sell your property if you don’t pay them back.
- Mortgage Registration Fee as at 1st July 2018 is $116.80.
The mortgage registration ensures that the mortgage can be viewed by a simple title search.
This therefore prevents you from selling your home and not paying back the lender – because the transfer of ownership wouldn’t be able to happen unless the previous mortgage was discharged.
VIC Mortgage Discharge Registration fee (when you are refinancing or selling)
This is payable when your existing mortgage is being discharged (released).
- Mortgage Discharge Registration Fee as at 1st July 2018 is $116.80.
This is usually payable when you’re refinancing or selling.
However, if you’re purchasing a property, your new lender may prepare a Mortgage Discharge and charge you this fee. Your solicitor arranging the settlement, will pass on that fee to the seller so that you’re not out of pocket.
Land Transfer Duty information
Property buyer information
Transfer of Land Act info (for Transfer Registration and Mortgage Registration)
Not purchasing in Victoria?
Click on the below link, and then choose your State: