Victorian Stamp Duty Savings: What First Home Buyers Need to Know
When buying property in Victoria, the purchase price is not the only cost to consider.
One of the largest upfront expenses can be land transfer duty, commonly called stamp duty.
Fortunately, eligible first-home buyers in Victoria may qualify for a stamp duty exemption or concession that can significantly reduce their upfront purchasing costs.
How Does the First Home Buyer Stamp Duty Exemption Work?
For eligible first-home buyers purchasing a Victorian home with a dutiable value of:
Up to $600,000
No land transfer duty
$600,001 to $750,000
Reduced land transfer duty
Once the relevant dutiable value is above $750,000, this specific first-home-buyer exemption/concession no longer applies.
Does It Apply Only to New Homes?
No.
Unlike the Victorian First Home Owner Grant, which generally applies to qualifying new homes, the first-home-buyer duty exemption or concession can potentially apply to:
New homes
Established homes
Eligible vacant residential land intended for your first home
This makes stamp duty support relevant to a broader range of first-home buyers.
What Does “Dutiable Value” Mean?
The State Revenue Office generally defines the property’s dutiable value as the higher of:
The price paid for the property, or
Its market value
Special rules can apply to particular transactions.
For eligible vacant land purchases, duty is assessed on the land itself rather than adding the value of the future building contract.
Eligible off-the-plan purchases may also receive different treatment when calculating dutiable value.
Who May Be Eligible?
All purchasers generally need to be:
Natural persons rather than companies or trusts
At least 18 years old
Australian citizens or permanent residents
Buying the property at market value
Purchasing it as their principal place of residence
Generally, you will not qualify if you, your spouse or your partner have already owned a home or other residential property in Australia, subject to specific rules and relief provisions.
What Are the Residency Requirements?
At least one purchaser must generally:
Move into the property as their principal place of residence, and
Live there for 12 continuous months, commencing within 12 months of settlement
Different timing requirements apply when purchasing vacant land and constructing a home.
For qualifying vacant land, the buyer generally needs to move in by the earlier of:
12 months after the occupancy certificate is issued, or
36 months after settlement of the land purchase.
How Much Could You Save?
The amount depends on the property’s dutiable value and the circumstances of the transaction.
For an eligible property valued at $600,000 or less, the qualifying first-home buyer pays no land transfer duty under this benefit.
Between $600,001 and $750,000, the benefit becomes a concession rather than a full exemption, meaning some duty is payable but at a reduced amount.
Rather than relying on a generic estimate, buyers should use the Victorian State Revenue Office’s current duty calculator and have the amount confirmed by their conveyancer or solicitor.
Can You Receive Both Stamp Duty Savings and the $10,000 Grant?
Potentially, yes.
Consider an eligible first-home buyer purchasing a qualifying newly built Victorian home.
Depending on the property value and the buyer’s circumstances, they may potentially qualify for both:
Victorian First Home Owner Grant
$10,000
and
First-Home Buyer Stamp Duty Benefit
Full exemption or reduced duty
The two benefits have different rules, so qualifying for one does not automatically mean qualifying for the other.
How Do You Apply?
Your conveyancer or solicitor will usually apply for the first-home-buyer duty exemption or concession as part of completing the property transfer.
The State Revenue Office uses its Digital Duties Form process to administer the benefit.
This is why engaging a qualified conveyancer or solicitor early in the purchase process can be valuable.
Why Stamp Duty Should Be Considered Before Setting Your Property Budget
A common first-home-buyer mistake is looking only at the property’s advertised price.
Your total purchase budget may also need to consider:
Deposit
Stamp duty
Conveyancing/legal costs
Loan costs
Property inspections
Building costs
Site costs
Insurance
Moving expenses
Government assistance available to you
Knowing whether you may qualify for stamp duty relief can therefore make a meaningful difference when calculating how much cash you may need before settlement.
Let Bright Homes Help You Plan the Next Step
Whether you’re looking for land, exploring a house-and-land solution or comparing new-home designs, understanding your overall budget early can make the home-buying process much clearer.
Bright Homes can help you explore suitable building and property options while the appropriate finance and legal professionals confirm the financial and legal details of your purchase.
Planning to Buy or Build Your First Home?
Talk to Bright Homes about your location, budget and home requirements.