First Home Buyer Stamp Duty Guide Victoria 2025: Everything You Need to Know
Everything first home buyers in Victoria need to know about stamp duty exemptions, eligibility criteria, and how to maximise your savings in 2025.
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Concessions & Exemptions Available in Victoria
Victoria offers several ways to reduce your stamp duty. Here's what may apply to you:
First Home Buyer
- $0 duty on properties up to $600,000
- Sliding scale concession: $600,001–$750,000
- Must move in within 12 months & occupy for 12+ months
- Not previously owned property anywhere in Australia
- Must be Australian citizen, PR, or NZ citizen (special visa)
Principal Place of Residence (PPR)
- Lower duty rates for properties $130,000–$550,000
- Example savings: ~$3,700 on a $500,000 home
- Must move in within 12 months of settlement
- Occupy continuously for at least 12 months
- Does NOT apply to vacant land or properties above $550,000
Off-the-Plan Concession
- Contracts signed 21 Oct 2024 – 20 Oct 2026
- Duty calculated on land value only (minus construction costs)
- Available to all buyers incl. investors
- Average saving: ~$24,500
- Applies to apartments & townhouses (not house-and-land packages)
Pensioner Concession
- Full exemption on properties up to $600,000
- Sliding scale: $600,001–$750,000
- Must hold valid Commonwealth concession card at settlement
- Once-only lifetime benefit per person
- Joint buyers: at least one eligible holder owning ≥25% qualifies
Foreign Buyer Surcharge
- Additional 8% surcharge on standard duty
- Applies to non-citizens, temporary visa holders, foreign entities
- Possible refund if permanent residency is granted later
- Refund application within 5 years of original payment
- Verify your visa status with the SRO before settlement
City of Melbourne — New Builds
- New residential property in City of Melbourne LGA
- Dutiable value up to $1,000,000
- 50% concession or full exemption available
- Different contract dates apply for concession vs. exemption
- Check SRO Victoria for specific contract date eligibility
2025–26 Victoria Land Transfer Duty Rates
Victoria uses a progressive rate structure. Rates effective from 1 July 2021 (thresholds last updated by SRO Victoria).
General Rates (Investors / Non-PPR)
| Dutiable Value | Duty Calculation | Effective Rate |
|---|---|---|
| $0 – $25,000 | 1.4% of dutiable value | 1.4% |
| $25,001 – $130,000 | $350 + 2.4% of excess over $25,000 | ~2.4% |
| $130,001 – $960,000 | $2,870 + 6% of excess over $130,000 | ~6% |
| $960,001 – $2,000,000 | 5.5% of full dutiable value | 5.5% flat* |
| Over $2,000,000 | $110,000 + 6.5% of excess over $2,000,000 | ~6.5% |
* The $960k–$2M bracket applies 5.5% to the full dutiable value (not just the marginal excess), which can create a slight anomaly at the threshold.
Principal Place of Residence (PPR) Rates
| Dutiable Value | Duty Calculation | Effective Rate |
|---|---|---|
| $0 – $130,000 | 1% of dutiable value | 1% |
| $130,001 – $440,000 | $1,300 + 3.5% of excess over $130,000 | ~3.5% |
| $440,001 – $550,000 | $12,155 + 5% of excess over $440,000 | ~5% |
| Over $550,000 | General rates apply | General |
PPR rates only apply for properties up to $550,000 where you intend to occupy the property as your principal place of residence.
Quick Reference Examples
$400,000
PPR/Owner: $7,455
Investor: $18,870
FHB: $0
$600,000
Owner/Investor: $31,070
FHB: $0
$750,000
Owner/Investor: $40,070
FHB: $40,070
$900,000
All buyers: $49,070*
$1,000,000
All buyers: $55,000
$1,500,000
All buyers: $82,500
* $900,000 falls in the $960k flat-rate bracket — so exactly $960,000 would attract $52,800, which is less than a strict progressive calculation would yield.
When & How to Pay Stamp Duty in Victoria
01
Payment Deadline
Stamp duty must be paid within 30 days of settlement. For electronic PEXA settlements, payment is processed automatically at settlement alongside title registration.
02
Who Pays
The buyer (transferee) is responsible for paying land transfer duty. Your conveyancer or solicitor typically handles lodgement and payment on your behalf via Duties Online.
03
Assessed On
Duty is assessed on the higher of the contract price or market value. If parties are related or the transfer isn't at arm's length, a formal valuation may be required by the SRO.
04
Tax Treatment
Stamp duty is not immediately tax-deductible. However, it forms part of your property's cost base for CGT purposes, potentially reducing capital gains tax when you eventually sell.
Frequently Asked Questions
For an owner-occupier (PPR), stamp duty on a $500,000 property is approximately $21,970. For an investor (general rates), it's approximately $25,070. A first home buyer would pay $0 on a $500,000 property.
First home buyers are fully exempt from stamp duty on properties valued up to $600,000. A sliding scale concession applies for properties between $600,001 and $750,000. Note: these thresholds have not been updated since 1 July 2017 despite significant property price growth.
Yes. Vacant land attracts general land transfer duty rates. The PPR concession does not apply to vacant land. However, first home buyers purchasing vacant land valued up to $400,000 may qualify for a full exemption.
For contracts signed between 21 October 2024 and 20 October 2026, buyers can deduct post-contract construction costs from the dutiable value. This applies to apartments and townhouses (not house-and-land packages). It's available to all buyers including investors, with average savings of around $24,500.
Foreign buyers (non-citizens, temporary visa holders, and foreign entities) pay an additional 8% surcharge on top of standard land transfer duty. If you later obtain permanent residency, you may apply for a refund within 5 years of the original payment.
Yes. Eligible pensioners and Commonwealth concession cardholders can receive a full exemption on properties up to $600,000 and a sliding scale concession for properties between $600,001 and $750,000. This is a once-only lifetime benefit. Joint buyers where only one holds a concession card can still access the benefit if the eligible person owns at least 25%.
Stamp duty is not immediately tax-deductible in the year of purchase. However, it is added to your property's cost base for Capital Gains Tax (CGT) purposes, which can reduce your taxable capital gain when you sell. For investment properties, this CGT benefit effectively provides indirect tax relief over time.
Properties with a dutiable value between $960,001 and $2,000,000 are taxed at 5.5% on the full dutiable value, not just the marginal excess. This is unusual compared to most progressive tax brackets. It means that at exactly $960,001, duty jumps significantly compared to $960,000 — a quirk worth factoring into purchase price negotiations.