Stamp duty in Victoria is a state government tax that applies to certain property and vehicle transactions. Also known as land transfer duty, property stamp duty in Victoria is calculated on a sliding scale based on the dutiable value of the property. Whereas for vehicles and cars, stamp duty is calculated on the type and value of the vehicle.
Be aware that stamp duty costs can add tens of thousands of dollars on top of your deposit and property price. With an understanding of how stamp duty works in Victoria, you can properly budget for it at an individual level.
Important note: The following article focuses on stamp duty rules at an individual level for purchasing property/vehicles in Victoria. Different rules may apply for companies, trusts, SMSFs, and other entities. If you’re buying through a business structure, consider speaking with a professional who can advise on your circumstances.
What is stamp duty in Victoria?
Stamp duty is a tax the Victorian Government charges when certain assets are transferred from one party to another. This commonly applies to property purchases and vehicle transfers.
For property purchases, stamp duty is known as land transfer duty and is generally based on the property’s dutiable value. For vehicles, duty is calculated according to the vehicle type, market value and registration transfer requirements.
The State Revenue Office and VicRoads administer these charges, which help fund government services and infrastructure throughout Victoria.
What are the stamp duty rates in Victoria?
Stamp duty rates in Victoria range from 1.4% to 6.5% based on the dutiable value of the property. The dutiable value is simply the purchase price. The general land transfer duty rates are:
| Dutiable value | Stamp duty rate |
|---|---|
| $0 – $25,000 | 1.4% of the dutiable value |
| $25,001 – $130,000 | $350 + 2.4% over $25,000 |
| $130,001 – $960,000 | $2,870 + 6% over $130,000 |
| $960,001 – $2,000,000 | 5.5% of the dutiable value |
| More than $2,000,000 | $110,000 + 6.5% over $2,000,000 |
Foreign buyers have to pay an additional 8% foreign purchaser duty on top of standard stamp duty rates. For properties over $960,000, rates can hit 5.5% or more.
How do you calculate property stamp duty in Victoria?
It’s calculated as a percentage of the price of the property. As an example, let’s calculate the stamp duty you’d need to pay on a $750,000 property with no concessions:
Subtract $130,000 from $750,000 = $620,000. Multiply $620,000 by 6% = $37,200. Add the base amount of $2,870. Total stamp duty payable = $40,070.
It’s easier to use the official State Revenue Office calculator. A stamp duty calculator helps you estimate the amount, but does not include every concession you may be eligible for.
How much is stamp duty on cars in Victoria?
Car stamp duty in Victoria is charged when a vehicle is transferred or registered to a new owner. The amount payable depends on:
- The type of vehicle
- The value of the vehicle
- The registration or transfer date
Current vehicle duty rates are:
| Vehicle type | Duty rate |
|---|---|
| Green passenger cars | $8.40 per $200 or part thereof |
| Primary producer passenger cars | $8.40 per $200 or part thereof |
| New non-passenger vehicles | $5.40 per $200 or part thereof |
| Used non-passenger vehicles | $8.40 per $200 or part thereof |
For other passenger cars, duty is charged on a sliding scale:
| Vehicle value | Duty rate |
|---|---|
| Up to $80,567 | $8.40 per $200 |
| $80,567.01 to $100,000 | $10.40 per $200 |
| $100,000.01 to $150,000 | $14.00 per $200 |
| More than $150,000 | $18.00 per $200 |
For example, a passenger vehicle valued at $80,567 attracts duty of approximately $3,385.20. If the vehicle value increases to $81,000, the higher rate applies, increasing the duty payable.
You can calculate vehicle duty using the official VicRoads and State Revenue Office vehicle duty calculator.
When do you have to pay stamp duty in Victoria?
In Victoria, payment for stamp duty depends on whether it is for the purchase of a property or a vehicle.
Property stamp duty is payable within 30 days of settlement. Conveyancers can help with all the paperwork and lodge the stamp duty payment on your behalf. For electronic settlements, the duty is paid automatically at settlement.
For vehicles, duty is generally payable within 14 days of registration of the transfer. If the vehicle was purchased from a dealership, duty is included within the purchase price in most cases and paid on your behalf.
What property stamp duty exemptions and concessions are available?
Several exemptions and concessions can bring down your stamp duty liability. But whether you qualify depends on the property value and your circumstances.
First home buyer exemption and concession
First-home buyers in Victoria are eligible for a full stamp duty exemption for properties valued up to $600,000. Homes valued between $600,001 and $750,000 get a stamp duty concession on a sliding scale.
Pensioner concession
Eligible pensioners can enjoy a one-time exemption for homes up to $600,000, and pay less stamp duty on homes between $600,001 and $750,000. Note that this can only be used once in your life.
Principal place of residence duty concession
A principal place of residence concession allows for reduced duty if the buyer moves into their main residence within 12 months and lives there for at least 12 months.
Family and other transfers
There are other exemptions that apply for family transfers between spouses, or after a person’s death (if certain conditions are met).
Transfers of a principal place of residence between spouses are exempt from stamp duty in Victoria. They also apply to transfers of farming land to family members or relatives.
What vehicle and car stamp duty exemptions and concessions are available?
Some vehicles qualify for concessional duty rates.
Green passenger vehicles
Green passenger cars generally have a concession rate. To qualify, a green passenger car must have combined tailpipe emissions of 120 grams or less per kilometre. You can find which car models fit this description on the government Green Vehicle Guide website.
Primary producer vehicles
Primary producers operating in the following industries may qualify for concessional vehicle duty:
- Agriculture
- Horticulture
- Viticulture
- Dairy
- Fishery and aquaculture
- Pastoral
Why does stamp duty matter for buyers?
For property and vehicle purchases, stamp duty is an additional upfront cost that needs to be factored into your budget. So it needs to be budgeted for alongside your home loan, lenders mortgage insurance, transfer fees, the cost of transferring the property’s title, and moving costs. All of these property costs add up very quickly.
On top of stamp duty, factor in your interest rates over the life of the loan and the other fees your lender charges.
While many see stamp duty as an outdated tax that comes at a financially stressful time, it is a big contributor to the state budget.
How can you budget for stamp duty?
From the outset, make sure you’re factoring stamp duty into your total upfront costs before buying property or vehicles in Victoria. Add it to your deposit, property price and other fees to see your true final cost.
Double-check the government costs, duties, and any applicable exemptions or concessions with your bank or solicitor. Stamp duty is a state or territory government fee, so the information you get from a calculator is only an estimate.
If you borrow to buy, remember your lender operates under an Australian Credit Licence and will factor stamp duty into how much credit you can get. Use accounting software to plan for the extra costs.
