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  • Gabriella Ferraro

Understanding Stamp Duty Concessions in Victoria: A Guide for Homebuyers

Stamp duty, or more recently referred to as ‘transfer duty’, is a significant expense for homebuyers in Victoria. In recognition of this, the Victorian government offers various concessions and exemptions to alleviate the financial burden placed on homebuyers. Understanding these concessions is crucial for prospective homebuyers to make informed decisions and to maximise their savings.



In Victoria, there are several stamp duty concessions available to benefit homebuyers, which we have outlined below:


1.       First Home Buyer Concessions: One of the most substantial stamp duty concessions in Victoria is available to first home buyers. Under the First Home Buyer Duty Exemption, Concession or Reduction scheme, properties valued below $600,000 are eligible for full stamp duty exemption and properties valued $600,001 to $750,000 are eligible to receive a stamp duty concession. To be eligible for the exemption or concession, you also must also meet the First Home Owner Grant criteria. However, unlike the First Home Owner Grant, this concession is applicable to both new and established homes.

 

2.       Principal Place of Residence Concession: Another important stamp duty concession in Victoria is the Principal Place of Residence (PPR) concession. This concession is available to homebuyers who intend to use the property as their primary residence for a continuous period of 12 months, commencing at settlement. Whilst the concession is available to all home buyer, the property’s value must be less than $550,000.

 

3.       Off-the-Plan Concessions: Victoria also offers stamp duty concessions for purchasers of off-the-plan properties. These concessions aim to support property development and encourage investment in new residential developments. Off-the-plan buyers may be eligible for discounted stamp duty rates or exemptions, particularly for properties purchased as a primary residence. However, it is essential to understand the eligibility criteria and any specific conditions attached to these concessions.

 

4.       Other Concessions and Exemptions: In addition to the concessions mentioned above, there are other stamp duty exemptions and concessions available in Victoria for specific circumstances. For example, concessions may be available for certain types of transactions, such as transfers between spouses or domestic partners, transfers resulting from a relationship breakdown, or transfers involving family farms. Pensioners may also be eligible for certain concessions. We recommend homebuyers to seek professional advice to determine their eligibility for these concessions based on their individual circumstances.


It is important for Victorian homebuyers to familiarise themselves with the eligibility criteria and conditions to ensure they can take full advantage of the available savings. By understanding the stamp duty concessions in Victoria, homebuyers can make informed decisions and achieve greater affordability in their property transactions.


Our team are available to answer questions you may have about potential Stamp Duty concessions and exemptions and any other eligible grants based on your personal circumstances. Please contact our office on (03) 9311 8911 to speak to a member of our property team.

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