Stamp Duty

Understanding Stamp Duty and Seller Taxes in Victoria

Stamp duty, also known as land transfer duty, is a tax paid by the buyer when purchasing property in Victoria. Here’s a breakdown of the rates as of 4 June 2024:

• Up to $25,000: 1.4% of the property’s value
• $25,001 to $130,000: $350 plus 2.4% of the value over $25,000
• $130,001 to $960,000: $2870 plus 6% of the value over $130,000
• Over $960,000: 5.5% of the property’s value

Example Calculations:

Example 1: Property valued at $1,200,000:

• The stamp duty is calculated as 5.5% of $1,200,000, resulting in $66,000.

Example 2: Property valued at $750,000:

• The stamp duty is calculated using the formula for properties between $130,001 and $960,000:
  • $2870 + 6% of ($750,000 – $130,000)
  • $2870 + 6% of $620,000
  • $2870 + $37,200
  • Total stamp duty = $40,070

Concessions and Exemptions:

• First Home Buyers: Discounts for properties up to $750,000.
• Principal Place of Residence: Reduced rates for homes up to $550,000.
• Pensioners and Concession Card Holders: Additional concessions may apply.

Seller Responsibilities:

Sellers in Victoria do not pay stamp duty but may be liable for Capital Gains Tax (CGT) if the property is not their principal place of residence. CGT is based on the profit made from the sale and is included in the seller’s income tax return.

For more information, visit the State Revenue Office Victoria or consult a financial advisor.

For more details on the property market, contact Allan Dobbin at mallacootapropertysales@gmail.com.