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If you’re looking to buy property in Victoria, there’s a good chance you’ve come across the term ‘stamp duty’. This one-off government tax is often overlooked during early planning, but it can significantly impact your total purchase costs.
Luckily, there are some exemptions and concessions available, particularly if you’re a first home buyer or meet certain eligibility criteria. So, who is eligible for stamp duty exemption in VIC? Let’s break it down.
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What Is Stamp Duty?
Stamp duty (officially known as ‘land transfer duty’) is a tax charged by state and territory governments when you buy property in Australia. It applies to residential homes, vacant land, and investment properties.
The amount you pay depends on:
- The purchase price of the property
- The location (each state and territory has different rules)
- Your buyer status (first home buyer, investor, etc.)
- Whether you qualify for any exemptions or concessions
In Victoria, stamp duty is calculated on a sliding scale, meaning the more expensive the property, the more duty you’ll typically pay. For example, buying a $750,000 home could cost you over $40,000 in stamp duty, unless you’re eligible for a reduction or exemption.
Who Is Eligible for Stamp Duty Exemption in VIC?
Stamp duty can add thousands to your purchase costs, but some buyers qualify for a Victoria stamp duty exemption. Here’s who may be eligible.
1. First Home Buyer Exemption
If you’re buying your first home in Victoria, you may be fully exempt from stamp duty under the First Home Buyer Duty Exemption. This is one of the most common ways people qualify for stamp duty relief in Victoria.
Eligibility criteria:
- You must be buying your first home
- The property’s dutiable value must be $600,000 or less
- You intend to live in the property as your principal place of residence for at least 12 months
- You’re an Australian citizen or permanent resident
Keep in mind: If the property is valued between $600,001 and $750,000, you may be eligible for a concession, rather than a full exemption.
2. Off-the-Plan Concession
In Victoria, buyers purchasing an off-the-plan property may qualify for a stamp duty concession, depending on how much of the construction has been completed at the time of contract.
This applies to:
- Off-the-plan homes bought to live in (not for investment)
- Contracts signed before construction is complete
The dutiable value is calculated on the land and the construction that has already occurred at the time of purchase, which can potentially reduce the total duty payable.
3. Pensioner Concession
Eligible pensioners may receive a once-only concession on stamp duty in Victoria when buying a home to live in.
To qualify:
- You must hold an approved pensioner concession card
- The property must be valued at $750,000 or less
- You must live in the home as your principal place of residence
Depending on the purchase price, the concession could be significant, especially for homes valued under $330,000, which may attract a full exemption.
4. Principal Place of Residence (PPR) Concession
This concession is available to all home buyers (not just first home buyers) who are buying a property in Victoria to live in as their main home.
Eligibility requirements:
- The property must be valued at $550,000 or less
- The buyer must move in within 12 months and live there for at least 12 continuous months
This concession can reduce the amount of stamp duty owed, though it does not offer full exemption unless combined with another qualifying category.
Other Situations Where Stamp Duty May Be Waived or Reduced in VIC
Spouse or Partner Transfers
If you’re transferring property to your spouse or partner, you may be exempt from stamp duty, provided certain criteria are met (e.g. both parties live in the property, and the transfer is not part of a commercial transaction).
Family Farms
Transfers of farming property between family members may qualify for a stamp duty exemption in Victoria, provided the land continues to be used for farming.
Deceased Estates
Transfers of property under a will or due to the death of a joint tenant are usually exempt from stamp duty.
Not Sure If You Qualify for an Exemption?
If you need support with stamp duty exemptions, use our free VIC stamp duty calculator to estimate your costs, or speak with our experienced mortgage brokers in Melbourne to explore your options.
Ready to get started? Start your property journey with trusted advice from Inovayt’s mortgage brokers.
