Basic Calculation Framework

Land transfer duty (commonly known as stamp duty) in Victoria is calculated based on either the property's sale price or its current market value, whichever is higher. This is known as the dutiable value.

• Payment is required within 30 days of settlement
• Land transfer duty is always paid by the buyer, not the seller
• All property transfers must use the mandatory Digital Duties Form via Duties Online, Victoria's electronic lodgement platform
• Your solicitor or conveyancer typically handles the payment process and lodgement on your behalf
• Interest charges apply to late payments at the market rate plus a premium of 8% per year

General Land Transfer Duty Rates (from 1 July 2021)

These rates apply to all property purchases where the principal place of residence concession does not apply, including investment properties.

Principal Place of Residence (PPR) Rates

Owner-occupiers receive concessional rates when purchasing properties valued between $130,000 and $550,000. You must move into the property within 12 months of settlement and live there continuously for at least 12 months.

First Home Buyer Duty Exemption and Concession

Victoria offers significant duty relief for eligible first home buyers purchasing properties for their principal place of residence.

Eligibility requirements: Must satisfy First Home Owner Grant criteria (except purchase price threshold), be 18+ years old, Australian citizen or permanent resident, never owned property in Australia before, and must live in property for 12 continuous months starting within 12 months of settlement.

Temporary Off-the-Plan Concession (Extended to 21 October 2026)

A significant temporary concession is available for off-the-plan purchases of apartments, units, and townhouses in strata subdivisions. This expanded concession is available to ALL buyers including investors, not just first home buyers and owner-occupiers. On 24 June 2025, the Victorian Parliament extended this concession by 12 months.

Example: A buyer purchasing a $620,000 off-the-plan apartment before construction starts could pay around $4,000 in duty instead of $32,000 - a saving of approximately $28,000.

Note: The existing off-the-plan concession for first home buyers and owner-occupiers (with price caps) continues alongside this temporary measure.

Foreign Purchaser Additional Duty

Foreign purchasers must pay an additional surcharge of 8% of the property value on top of standard land transfer duty. This applies to all residential property purchases by foreign persons for contracts entered into on or after 1 July 2019.

• The surcharge is calculated on the full purchase price, not the dutiable value after concessions
• Foreign purchasers can still access other concessions (e.g., off-the-plan) for the general duty component
• Additional annual land tax surcharge also applies to foreign owners

Pensioner Duty Exemption and Concession

Eligible pensioners and concession card holders can receive a once-only duty exemption or concession when purchasing a principal place of residence.

Note: From 1 July 2023, the thresholds changed to align with first home buyer concessions: full exemption up to $600,000, concession from $600,001 to $750,000.

Eligible cards include: Pensioner Concession Card, Commonwealth Seniors Health Card, Health Care Card, DVA Gold or White Card, and other approved concession cards. Must hold card at settlement date.

City of Melbourne Concessions (Expired)

Special concessions were available for new residential properties within the City of Melbourne LGA with a dutiable value up to $1 million. These have now expired but included:

• 50% concession: For contracts entered 1 July 2021 to 30 June 2022
• Full exemption: For properties unsold for 12+ months (contracts 21 May 2021 to 30 June 2022)
• Applied after all other concessions were calculated
• Similar concessions applied to Capital City Zone properties outside Melbourne LGA

Other Exemptions and Concessions

Property Types and Considerations

Additional Costs and Considerations