Did you know that stamp duty can add tens of thousands of dollars to the cost of buying a home in Victoria?
For many homebuyers, this tax is one of the biggest hurdles to homeownership. However, recent changes in 2025 have introduced new stamp duty concessions that could save you thousands, especially if you’re buying off-the-plan apartments, townhouses, or units.
So, how does stamp duty work, and how can you take advantage of these new savings? Let’s break it down.
What Is Stamp Duty?
Stamp Duty, also known as property transfer duty, is a tax levied by the Victorian government on property purchases. The amount you pay depends on the property’s value, its type, and whether you qualify for any exemptions or concessions.
For first-home buyers, understanding stamp duty rates and available concessions is crucial to managing home purchase costs.
Here’s a quick overview of how stamp duty is calculated in Victoria:
|
Dutiable Value Range |
Stamp Duty Rate |
|---|---|
|
$0 – $25,000 |
1.4% |
| >$25,000 – $130,000 | $350 + 2.4% over $25,000 |
| >$130,000 – $960,000 | $2,870 + 6% over $130,000 |
| >$960,000 – $2,000,000 | 5.5% |
| Over $2,000,000 | $110,000 + 6.5% over $2,000,000 |
To get a precise estimate, buyers can use our VIC Stamp Duty Calculator online.
New Stamp Duty Concessions For 2025
Major stamp duty changes were brought about by the Victorian government in 2025 to make homeownership more affordable.
Here’s what you need to know:
1. Off-the-Plan Concessions
When determining the stamp duty on a property purchased off-the-plan, construction costs are to be deducted from the sale price. As such, this reduces the dutiable value, meaning lower stamp duty costs. Read more – https://www.sro.vic.gov.au/land-transfer-duty/offtheplan
2. Expanded Eligibility
Previously, the stamp duty discounts were only available to first home buyers and owner-occupiers; from now on, those concessions can apply to all buyers, provided they wish to purchase an eligible off-the-plan property regardless of the price.
3. Eligibility Criteria
The property must be part of a strata subdivision, meaning it shares common property like driveways or hallways. House and land packages are not included, but existing concessions for those properties remain unchanged.
Who Can Benefit From Stamp Duty Exemptions And Concessions?
Several groups can benefit from stamp duty relief in Victoria. These include:
First Home Buyers
- Full exemption for properties valued at $600,000 or less.
- Discounted stamp duty for properties valued between $600,000 and $750,000.
- First Home Owner Grant (FHOG): Eligible first-time buyers can receive a $10,000 grant when purchasing a newly built home or an off-the-plan property.
Non-First Home Buyers & Investors
- Previously, only owner-occupiers could access certain stamp duty discounts, but in 2025, all buyers of eligible off-the-plan properties can benefit.
- This could lead to tens of thousands of dollars in savings depending on the property’s value and construction costs.
How To Calculate Stamp Duty?
Calculating stamp duty can be complex, but tools like the Stamp Duty Calculator simplify the process.
Here’s how it works:
1. Determine the Dutiable Value
For off-the-plan properties, subtract construction costs from the sale price to find the dutiable value.
2. Apply the Relevant Rate
Use the stamp duty rates table above to calculate the tax based on the dutiable value.
3. Factor in Concessions
Apply any applicable stamp duty exemptions or concessions to reduce the final amount.
Key Considerations For Home Buyers
1. Budgeting For Stamp Duty
Stamp duty fees can be an extra financial expanse, so it’s worth planning for. Use a stamp duty calculator to prepare yourself.
2. Stamp Duty Land Tax
While stamp duty is a one-time levy, land tax ranks second to stamp duty as an annual tax for investment properties. For that reason, you must not forget to take account of both when planning your purchase.
3. Seeking Professional Advice
Stamp duty rules and concessions can be complex. Depending on your situation, getting the right professional advice, such as a financial advisor or conveyancer, can help you save money.
Steps To Take As A First-Home Buyer
Stamps duty concessions are great for the new buyers who can plan their purchase.
Some tips for the home buyers are:
- Eligibility check: If you are buying an off-the-plan apartment, townhouse, or unit, check whether they qualify under the strata subdivision rule.
- Use a Stamp Duty Calculator: This is important to get an accurate stamp duty estimate so that your budget is planned accordingly.
- Include Others Cost: Other costs related to home buying like legal fees, mortgage insurance, and council rates are factored in.
- Professional Help: Take advice from a conveyancer or property expert so they may tell you what exemptions may best suit your interest.
Get Expert Guidance On Stamp Duty And More
Stamp duty is usually a cost that can put a hefty charge on your property. However, through guidance, it can possibly be reduced. Our Eagle Peak Conveyancers will help you to understand your duties concerning stamp duty; they will also help you investigate potential refunds and subsidies such as the First Home Owners Grant.
We offer fixed-price conveyancing in Melbourne, and with a reputation for reliability, we make property transactions a whole lot easier and a whole lot less stressful. We take care of all the corners while you focus on securing your dream home.
