Stamp duty in Victoria, and the concessions that reduce it

Written and reviewed by Brandon Owens, Licensed Conveyancer (licence no. 001729L). Last reviewed 10 September 2026.

Stamp duty is usually the largest single cost of buying a property in Victoria after the price itself, and it is the one most often underestimated. This guide explains what it is, when you pay it, and every concession that might reduce it.

What is stamp duty in Victoria?

Stamp duty in Victoria is formally called land transfer duty. It is a state tax charged by the State Revenue Office of Victoria when property changes hands, and the buyer pays it.

Duty is calculated on the dutiable value of the property, which is normally the greater of the purchase price and the property’s market value. Victoria uses a sliding scale, so a more expensive property attracts duty at a higher effective rate rather than a flat percentage.

Because the rates change from time to time and depend on your circumstances, the reliable way to get a figure for a specific purchase is the State Revenue Office’s own calculator. Your conveyancer will also calculate it for you as part of the matter, and it will appear on your settlement statement.

When do you pay stamp duty in Victoria?

Land transfer duty must be paid within 30 days of settlement. Penalty tax and interest may apply if it is not.

In practice, almost every Victorian residential settlement now happens electronically through PEXA, and the duty is paid as part of that settlement. Your conveyancer arranges it, the money moves on the day, and there is no separate bill to deal with afterwards. What matters for you is having the duty amount available at settlement, on top of the balance of the purchase price.

The first home buyer exemption and concession

First home buyers in Victoria pay no land transfer duty at all on a home with a dutiable value of $600,000 or less. Between $600,001 and $750,000 they pay a reduced amount of duty on a sliding scale, and the benefit phases out entirely at $750,000.

To qualify:

• The property must be your principal place of residence.
• At least one purchaser must move in within 12 months of settlement and live there continuously for at least 12 months.
• The benefit is once only. If you have had it before, you cannot have it again.

If you are buying vacant land and building, the occupancy rule works differently: you must move in by the earlier of 12 months after the occupancy certificate is issued, or 36 months after settlement.

This is the single largest saving available to a Victorian buyer, and the $600,000 and $750,000 figures are the ones worth committing to memory when you are working out what you can afford.

The principal place of residence concession

If you are not a first home buyer but you are buying somewhere to live, the principal place of residence (PPR) concession may still reduce your duty. It applies where the dutiable value is more than $130,000 and not more than $550,000, and the maximum saving is $3,100.

The occupancy rule is the same: at least one purchaser must live in the property as their principal place of residence for 12 continuous months, starting within 12 months of settlement.

The PPR concession is smaller than the first home buyer benefit but it is not restricted to first home buyers, so it is worth checking on any owner-occupied purchase under $550,000.

The pensioner and concession cardholder reduction

Eligible pensioners and concession cardholders buying a home in Victoria pay no duty on a property valued at $600,000 or less, and a reduced amount between $600,001 and $750,000. Above $750,000 the reduction does not apply.

The conditions mirror the other concessions. The reduction is once only, you must hold an eligible Commonwealth concession card at the date of the transfer, and you must occupy the property as your principal place of residence for 12 continuous months starting within 12 months of settlement.

One point catches people out: if you are both a first home buyer and an eligible pensioner, you must choose one. You cannot claim the pensioner reduction and the first home buyer benefit on the same purchase.

Foreign purchaser additional duty

Foreign purchasers of residential property in Victoria pay an extra 8% of the dutiable value on top of ordinary land transfer duty. That rate has applied to contracts entered into on or after 1 July 2019.

“Foreign purchaser” covers foreign natural persons, foreign corporations, and trustees of foreign trusts. It is a definition worth checking rather than assuming, because it can catch structures that do not feel foreign at first glance, such as a family trust with an overseas beneficiary.

New Zealand citizens should note a change that took effect for settlements on or after 26 November 2025. Visa status alone is no longer enough to avoid the surcharge. A New Zealand citizen must have ordinarily resided, or will ordinarily reside, in Australia for a continuous period of at least six months falling somewhere between 12 months before settlement and 12 months after it.

If there is any chance the surcharge applies to you, raise it with your conveyancer before you sign. At 8% of the dutiable value it is far too large to discover late.

Which concession applies to you?

Buying an apartment or townhouse off the plan can reduce the dutiable value substantially before any of this is calculated. That is covered separately in our guide to buying off the plan in Victoria.

What we do about duty on your matter

Lodgedwell calculates your land transfer duty as part of every purchase, checks every concession you might be entitled to rather than waiting for you to ask, and prepares the duty forms so the payment happens at settlement without you chasing it. If a concession depends on something you need to do, such as moving in within a set period, we tell you plainly and in writing.

This guide is general information about Victorian property law, current at 10 September 2026. It is not legal advice and does not take your circumstances into account. Conveyancing law differs between Australian states, and this page describes Victoria only.