Stamp duty is payable in Victoria within 30 days of settlement, and failure to pay within this timeframe may see you incur penalty tax and interest. Interest is charged at the market rate (which is adjusted every July) plus a premium of 8% per year on any unpaid stamp duty.
The interest rate as of July 2022 is 9%, which is the premium rate of 8% plus the current market rate of 1%.⁶ As an example, this means you’d incur an additional $900 in tax for every year you didn’t pay a $10,000 stamp duty bill and, depending on the circumstances, penalty tax rates could also apply.
However, it’s worth noting that if you’re buying a home with the assistance of a lender via a home loan, you’re generally required to have your stamp duty sorted and paid at settlement.
You may be eligible for a stamp duty exemption or concession in Victoria as a first home buyer. The Victorian Government doesn’t require stamp duty for first home buyers on homes valued at $600,000 or less, and offers a concession for properties worth $600,000-$750,000.⁷
Similar to how stamp duty is normally calculated, the first home buyer duty concession is applied on a sliding scale. The closer the value of your property is to $600,000, the bigger a stamp duty concession you receive. This stamp duty concession applies to new homes, established homes and vacant land.
The table below demonstrates how much you’d save on stamp duty with the first home buyer duty concession, with a principal place of residence concession, at a range of different property prices.
|Dutiable value ($)||Normal duty ($)||Duty after concession ($)|
The stamp duty exemption and concessions for first home buyers are also available for vacant land; however, it must be bought with the purpose of building a principal place of residence on it.
Note that any stamp duty exemption or concession you receive is separate to Victoria’s First Home Owner Grant (FHOG).
In addition to the stamp duty concessions and exemptions available for first home buyers in Victoria, you may be eligible for other discounts or stamp duty waivers. Exemptions may be available when:
Concessions or exemptions may also be available to those purchasing property in regional Victoria for commercial, industrial or extractive industry purposes.
You could get a stamp duty exemption if you’re an eligible pensioner and buy a property in Victoria to use as your primary residence. You’ll need to hold a valid Commonwealth concession card and, in most circumstances, need to be the primary card holder.⁸
Cards that are eligible include:
Foreign buyers (whether they’re a resident, company or trust) that purchase residential land in Victoria must pay the regular stamp duty that’s applicable, plus an 8% foreign purchaser additional duty.⁸
In Victoria, your bank, solicitor or conveyancer will generally arrange to pay the stamp duty on your house, land or property on your behalf. However, always check with them or request a duty statement, as you may incur fees if they don’t pay your stamp duty in time.
1 Victoria State Government, Property sales statistics. 2023.
2 State Revenue Office Victoria. Dutiable value of a property. 2023.
3 State Revenue Office Victoria. Principal place of residence duty rates. 2023.
4 State Revenue Office Victoria. General land transfer duty current rates. 2023.
5 State Revenue Office Victoria. Land Transfer Duty. 2023.
6 State Revenue Office Victoria. Interest rates. 2023.
7 State Revenue Office Victoria. First home buyer duty exemption, concession or reduction. 2023.
8 State Revenue Office Victoria. Approved Commonwealth concession cards. 2023.
⁹ State Revenue Office Victoria. Foreign purchasers of property. 2023.