What You Need to Know About the New Victorian Temporary Stamp Duty

Victoria has introduced temporary stamp duty concessions to stimulate the property market. Find out how these changes affect buyers and sellers in Melbourne.

Disclaimer: This article provides general information based on Australian law and is not legal advice. Laws and policies change — contact Ebra Partners for advice specific to your situation.

What Is Stamp Duty?

Stamp duty is a government tax applied to certain transactions, most commonly property purchases. It's essentially a fee you pay to the state for transferring property ownership to your name. Revenue from stamp duty is used to fund public services, including healthcare, transport, and education.

You'll encounter stamp duty when buying a home, an investment property, or even when transferring property ownership between family members. How much you pay and the rules around it can vary widely depending on the property value, location, and purpose of the purchase.

The New Temporary Stamp Duty Concession in Victoria

In late October 2024, the Victorian Government introduced a temporary stamp duty concession as part of a broader Victoria stamp duty overhaul. This change, effective from 21 October 2024 to 20 October 2025, is significant for buyers of off-the-plan strata-title properties, including apartments, units, and townhouses.

Key benefits of the new concession:

• Broader Eligibility: Unlike the existing concession, which was limited to first-home buyers and owner-occupiers, the new concession extends to all buyers, including investors, companies, and trusts.
• No Value Thresholds: The concession applies to properties of any price, eliminating the previous cap on eligible property values.
• Cost Savings: Stamp duty is now calculated on the land value only, excluding construction costs, leading to substantial savings.

House and land packages or other dwellings that are not part of a strata subdivision are not eligible for the expanded concession.

How Much Is Stamp Duty in Victoria?

• Under $600,000: First-home buyers may qualify for a full exemption if the property is their principal place of residence (PPR).
• $600,001 to $750,000: A sliding scale applies, offering reduced rates for eligible first-home buyers and PPRs.
• Over $750,000: Standard rates apply with no exemptions for first-home buyers.

How the New Temporary Concession Works

For example, if Alex signs a contract on 5 January 2025 to purchase an off-the-plan apartment for $1,100,000, and the developer advises that $600,000 will be spent on construction, Alex's stamp duty will be calculated based on the land value only ($500,000). This significantly reduces the dutiable value compared to standard calculations. Crucially, as an investor, Alex would still qualify — the concession now includes all buyer types with no price limits on eligible properties.

Can You Avoid Paying Stamp Duty?

While stamp duty is generally unavoidable, several concessions and exemptions may reduce the burden:

• First Home Buyer Exemptions: First-time buyers may avoid stamp duty entirely for properties under $600,000, subject to eligibility criteria.
• Pensioner Concessions: Eligible retirees purchasing a home to live in may qualify for discounts.
• Off-the-Plan Concessions: Both the existing and new temporary concessions offer notable stamp duty reductions, with the latest scheme extending benefits to a broader range of buyers.

Are Pensioners Exempt From Stamp Duty?

Pensioners in Victoria may qualify for a one-off stamp duty concession or exemption when buying their principal place of residence, depending on the property's value. Speak to a professional for accurate advice tailored to your situation.

How to Transfer Property Title Between Family Members

Transferring property to a family member usually involves stamp duty unless exemptions apply, such as for spouses or under specific circumstances like inheritance. It's a complex process, so seeking guidance from a conveyancer can save you time and headaches.

Get Expert Guidance

Stamp duty rules can be tricky to navigate, especially with temporary concessions like those recently introduced in Victoria. For trusted advice tailored to your needs, contact Ebra Partners today for your free consultation. Our approachable team is here to help you make confident, informed decisions.

Need personalised advice? Contact Ebra Partners on 1800 845 143 or visit us at 1059 Mt Alexander Road, Essendon VIC 3040 for a free initial consultation.