Key Takeaways
- Stamp duty in Victoria is a significant upfront cost calculated on the higher value of either the property’s purchase price or its market value.
- Several concessions and exemptions for 2025 have been introduced, including the First Home Buyer Concession, Principal Place of Residence Concession, and Temporary Off-the-Plan Duty Concession.
- Eligible first home buyers can receive a full exemption for properties valued at $600,000 or less, and a concession on a sliding scale for properties valued between $600,001 and $750,000.
- An 8% surcharge applies to non-citizen and foreign entity purchasers, with possible duty refunds available if permanent residency is granted later.
- Legal advice is essential for buyers to navigate complex scenarios and maximize savings by ensuring compliance with strict documentation requirements and understanding available concessions.
Stamp duty in Victoria — also known as land transfer duty or transfer duty — is a significant upfront cost when purchasing property. In 2025, several concessions and exemptions have been introduced or extended to ease financial burdens on home buyers, support new housing supply, and stimulate residential investment.
This guide breaks down the current rules, exemptions, strategic legal considerations, and common traps — giving you a clear path to maximising your savings and avoiding unnecessary expenses.
What Is Stamp Duty?
Stamp duty is a state tax levied on the transfer of real estate. In Victoria, stamp duty is calculated on whichever is higher: the property’s purchase price or its market value. For many buyers, this cost can amount to tens of thousands of dollars.
Thankfully, a range of exemptions, concessions, and refunds are available to qualifying buyers — provided the contract, ownership structure, and use of the property meet strict requirements.
You can estimate your liability using the stamp duty calculator (VIC) from the State Revenue Office (SRO).
Key Stamp Duty VIC Exemptions & Concessions (2025)
The SRO offers a suite of relief measures based on buyer type, property value, and intended use. Below are the primary concessions available in 2025:
First Home Buyer Concession or Exemption
Eligible first home buyers may receive:
- Full exemption for properties valued at $600,000 or less
- Concession on a sliding scale between $600,001 and $750,000
To qualify:
- The buyer must live in the home as their principal place of residence (PPR) for at least 12 continuous months
- The buyer must not have previously owned property in Australia
For full eligibility and application details, see the Victorian First Home Buyer Guide.
Principal Place of Residence (PPR) Concession
Available to all owner-occupiers:
- Applies to properties valued up to $550,000
- Buyer must occupy the home as their main residence for at least 12 months
This concession can often be used alongside others — such as the First Home Buyer Concession or the Off-the-Plan Discount — where applicable.
Temporary Off-the-Plan Duty Concession (Extended)
This concession allows certain costs of construction to be excluded from dutiable value, significantly lowering payable duty.
Eligibility criteria:
- Property must be a new home or apartment
- Dutiable value capped at $1 million
- Contract must be signed between 21 May 2024 and 30 June 2025
- Buyer must intend to occupy the property as a PPR
Learn more at the SRO’s Off-the-Plan Concession page.
Pensioner Exemption or Concession
Helps eligible older Victorians relocate or downsize:
- Full exemption for homes valued up to $330,000
- Concession for homes up to $750,000
This is a once-in-a-lifetime benefit, so it should be used strategically.
Spousal or De Facto Transfers
No duty is payable on property transfers between spouses or de facto partners if:
- The transfer relates to their principal residence
- No money or consideration changes hands
This is commonly used in estate planning or relationship asset restructuring.
Family Farm Exemption
Property used for primary production may be transferred between relatives without duty if:
- The land qualifies as farmland
- The transfer is between eligible family members
This exemption is important in succession planning. For advice, visit our Wills & Estates legal services.
Foreign Purchaser Surcharge
Non-citizens and foreign entities must pay an 8% surcharge in addition to general duty rates.
- Applies even if the buyer is awaiting permanent residency
- A duty refund may be available if PR is later granted
Seek legal advice to structure your transaction and apply correctly, especially when using trusts or overseas entities.
Stamp Duty Cuts for New Builds (2025–2026)
The Victorian Government has extended its 50% stamp duty concession for new residential builds until 30 June 2026.
Conditions:
- Property must be brand new and never previously occupied
- Value must not exceed $1 million
- Contract must be signed between 21 May 2024 and 30 June 2026
- Buyer must live in the home for 12 consecutive months
Ideal for:
- First home buyers
- Buyers in fast-growing suburbs (e.g., Casey, Melton, Wyndham)
- Upgraders or down-sizers entering the new-build market
Stamp Duty Rates in Victoria (2025)
| Dutiable Value Range | Duty Payable (General Rate) |
| Up to $25,000 | 1.4% |
| $25,001 – $130,000 | $350 + 2.4% of amount over $25,000 |
| $130,001 – $960,000 | $2,870 + 6% of the amount over $130,000 |
| More than $960,000 | $5.5% of dutiable value |
See the full 2025 Stamp Duty Rates Guide for property-specific examples.
Stamp Duty Refunds & Reassessments
You may be eligible for a duty refund if:
- The purchase contract is rescinded or cancelled
- You paid the foreign purchaser surcharge but later gained PR
- You qualified for a concession but did not apply
Refund applications must be submitted within five years of the original duty payment. Visit the SRO VIC Refund Portal to apply.
Common Mistakes That Could Cost You
Many buyers lose thousands by overlooking key stamp duty requirements. Mistakes include:
- Missing critical contract dates for limited-time concessions
- Misunderstanding PPR rules — even short absences can void eligibility
- Using a trust or company without understanding disqualification risks
- Relying solely on conveyancers, who may not offer proactive structuring advice
Legal Strategy: Why Timing and Ownership Structure Matter
Stamp duty planning should be part of your broader legal and financial strategy:
- Investment Yield: Duty can significantly reduce ROI — especially when combined with land tax.
- Joint Ownership: Buying with family or friends may trigger unintended tax or estate complications.
- Trusts & SMSFs: These structures may disqualify you from key concessions, though they offer protection and tax benefits in some scenarios.
- Succession Planning: Transferring property within families — without proper legal advice — can result in both duty and capital gains tax liabilities.
Legal Tip: Always clarify ownership, intent, and timing with a property lawyer before signing.
Real-World Example: Over $25K Saved
In June 2025, Sarah, a first home buyer, purchased a new apartment in Brunswick for $635,000.
With proper legal support, she combined:
- First Home Buyer Concession (partial)
- PPR Concession
- 50% New Build Discount
Her duty dropped from ~$30,000 to under $5,000. Without advice, she could have missed one or more of these entitlements due to documentation errors or mistimed signing.
Who Should Seek Legal Advice?
While stamp duty calculators and government guides are a helpful starting point, certain buyers are far more likely to encounter complex legal and financial scenarios where professional advice is essential.
These include:
- Foreign purchasers navigating surcharge rules, temporary visa restrictions, or permanent residency pathways
- Self-employed buyers using business income, dual-purpose properties, or home offices
- Family trusts, SMSFs, or companies acquiring residential or commercial property
- Joint or family buyers with long-term tax, estate, or succession planning goals
Legal guidance helps buyers avoid missing concessions, structure transactions efficiently, and comply with strict documentation requirements — minimising audit or reassessment risk.
Frequently Asked Questions (FAQ)
Can I claim more than one concession at the same time?
No. However, some combinations (e.g., PPR + OTP) may apply depending on criteria.
What is the difference between market value and dutiable value?
Dutiable value is the greater purchase price or market value, minus deductions like construction cost (for OTP).
Do foreign purchasers always pay extra duty?
Yes — an 8% surcharge applies unless you obtain PR and apply for a refund.
Do inherited properties attract stamp duty?
If passed under a valid will or intestacy, no duty will apply. Transfers between beneficiaries may attract duty.
Do I need to live on the property to qualify for concessions?
Yes — for First Home, PPR, and New Build concessions, you must live on the property for 12 continuous months.
Final Thoughts: Maximise Your Stamp Duty Entitlements
Victoria’s 2025 stamp duty rules present significant savings for eligible buyers — but only if the fine print is carefully followed. Small missteps in timing, structure, or declarations can result in missed concessions or future reassessment.
At Pentana Stanton Lawyers, we help clients:
- Identify and apply for all relevant exemptions, concessions, and refunds
- Avoid costly eligibility errors
- Structure transactions to align with tax, succession, and property goals
Book a free assessment with our team today to ensure your next property purchase is structured for maximum benefit — before you sign the contract.