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Stamp Duty in Victoria
Stamp duty is a levy imposed by state and territory governments on certain types of transactions. In Victoria, stamp duty is imposed on certain kinds of dutiable transactions.
What are dutiable transactions?
Dutiable transactions are defined in the Duties Act 2000 and include:
- transfers of dutiable property
- surrenders of dutiable property
- other transactions that result in another person receiving beneficial ownership of dutiable property (e.g. declarations of trust).
These transactions may be made in writing (including electronically) or orally.
What are my stamp duty obligations?
Stamp duty is usually payable by the person acquiring the dutiable property. It must be paid within 30 days after the liability to pay duty arises. If a person fails to pay stamp duty within the 30-day period, they may be required to pay a penalty or interest for late payment.
Liability for duty arises when the dutiable transaction occurs.
To pay stamp duty, a person will generally need to lodge the written document that gave effect to the dutiable transaction with the State Revenue Office. Separate forms are generally also required for dutiable transactions that were made orally.
How much duty needs to be paid?
The amount of duty payable on a dutiable transaction depends on the dutiable value of the property that is sold. The dutiable value of the property the greater of:
- the amount that was paid for the property; and
- the market value of the property free from encumbrances.
Different rates of stamp duty apply depending on the dutiable value of the property involved. For example, if the dutiable value of the property is greater than $960,000, the amount of duty is 5.5% of the dutiable value. The amount of duty decreases as the dutiable value decreases. For example, for transactions where the dutiable value is $25,000 or less, the amount of duty is 1.4% of the dutiable value.
Exemptions and concessions for residential property
In certain circumstances, first-time home buyers are entitled to an exemption or a concession in the amount of duty payable on a transfer of land for use as residential premises.
This exemption is available if the dutiable value of a property purchased after 1 July 2017 is $600,000 or less, and the purchaser was entitled to the first homeowner’s grant when they purchased the property.
The concession is available if the dutiable value of a property purchased after 1 July 2017 was between $600,000 and $750,000 and the purchaser was entitled to the first homeowners grant when they purchased the property.
Unlike the first homeowners grant itself, the stamp duty exemption and concession are available regardless of whether the home purchased is a new or an existing home.
Other exemptions and concessions
There are a number of other exemptions and concessions in the Duties Act 2000
Transfers made in accordance with a will are generally free from stamp duty. Transfers between spouses are also not subject to stamp duty. Certain pensioners are also entitled to a reduction in stamp duty in Victoria for certain transfers of land.
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