Stamp duty — officially called land transfer dutyin Victoria — is a state government tax you pay when you buy property. It's one of the biggest upfront costs in any property purchase, and understanding exactly how much you'll owe is essential for budgeting.
How stamp duty works
Stamp duty is calculated on the dutiable valueof the property, which is generally the purchase price or the market value — whichever is higher. The rate is progressive, meaning you pay different percentages on different portions of the price, similar to income tax brackets.
Current rate brackets (2024–25)
The general stamp duty rates for property purchases in Victoria are:
- Up to $25,000 — 1.4% of the dutiable value
- $25,001 to $130,000 — $350 plus 2.4% of the amount over $25,000
- $130,001 to $960,000 — $2,870 plus 6.0% of the amount over $130,000
- $960,001 to $2,000,000 — flat rate of 5.5% of the total dutiable value
- Over $2,000,000 — 6.5% of the total dutiable value
Note: These rates are subject to change. Always check the current rates on the State Revenue Office website before making financial decisions.
First home buyer exemption and concession
If you're a first home buyer purchasing a property valued at $600,000 or less, you are fully exempt from stamp duty — you pay $0.
For properties valued between $600,001 and $750,000, a sliding scale of concessions applies. The concession decreases as the property value increases, and at $750,001 the concession disappears entirely.
To qualify, you must:
- Be an Australian citizen or permanent resident
- Be at least 18 years old
- Have never owned property in Australia (including through a company or trust)
- Move into the property within 12 months and live there for at least 12 continuous months
For more on first home buyer benefits and what else to expect, see our first home buyer's guide.
Principal place of residence concession
If you're not a first home buyer but you're purchasing a home to live in (not an investment property), you may qualify for the principal place of residence (PPR) concession. This applies to properties valued up to $550,000 and provides a reduced duty rate compared to the general rate.
Foreign purchaser surcharge
Foreign purchasers (non-residents and temporary visa holders) pay an additional 8% surchargeon top of the standard stamp duty. On a $700,000 property, this adds $56,000 to the duty payable — a significant additional cost.
The surcharge applies to both residential property purchases and transfers. Some exemptions exist for Australian permanent residents and certain visa categories.
When do you pay?
Stamp duty must be paid within 30 days of settlement(not the contract signing date). Your solicitor or conveyancer will typically arrange payment as part of the settlement process. If you don't pay on time, interest and penalties apply.
Example calculations
Here's what a general buyer (not a first home buyer) would pay at three common price points:
$500,000 property
Duty = $2,870 + 6.0% of ($500,000 − $130,000) = $2,870 + $22,200 = $25,070
$700,000 property
Duty = $2,870 + 6.0% of ($700,000 − $130,000) = $2,870 + $34,200 = $37,070
$900,000 property
Duty = $2,870 + 6.0% of ($900,000 − $130,000) = $2,870 + $46,200 = $49,070
These are approximate figures for general buyers. First home buyers, PPR concession holders, and foreign purchasers will pay different amounts.
Use the stamp duty calculator
For an estimate specific to your situation, use the stamp duty calculator built into your Pre Contract Review report. It factors in first home buyer exemptions, concessions, and the foreign purchaser surcharge to give you a personalised estimate alongside your contract analysis.
For a full picture of all the costs involved in buying property beyond stamp duty, see our guide on the hidden costs of buying property in Victoria.