Stamp Duty Victoria
At Settle Easy, our expert local conveyancers are often asked about stamp duty which is also known as land transfer duty.
Stamp Duty Victoria, In simple terms, this is a tax or duty that must be paid when you acquire a property – even if you receive that property as a gift or if it is obtained through a company or trust.
Our experienced conveyancers are regularly asked what stamp duty is, how it is calculated, when it has to be paid and if there are any exemptions or concessions applicable.
Here are the five most important things you need to know about stamp duty in Victoria:
1. You should budget for stamp duty
Generally, stamp duty is calculated as five percent of the price of the property you are buying.
It’s important to know this, because you will need to budget for this in addition to mortgage fees and any other expenses that are part of acquiring property.
2. Stamp duty is calculated differently for every property
Stamp duty is calculated on either the purchase price or market value of the property, whichever is highest.
The duty payable is determined by the Victorian Government.
To calculate how much stamp duty you will pay, why not access our easy-to-use free stamp duty calculator. That way, you can anticipate what your stamp duty costs will be and budget accordingly.
3. Stamp duty is payable at settlement
In Victoria, stamp duty must be paid on the day you settle. This means you need to budget for stamp duty on top of your deposit, mortgage, moving costs, building inspection and any other expenses that come with buying property.
4. Stamp duty concessions
The good news is that there are concessions and exemptions available to eligible buyers. For example, if you are a first-time buyer, the Victorian Government offers stamp duty exemption if the property you want to buy is under $600,000.
For properties between $600,001 and $750,000 there may be a reduction or concession on the stamp duty payable.
There are also temporary concessions available on properties worth up to $1 million on contracts signed on or after 25 November 2020 and before 1 July 2021.
You can find out more about stamp duty exemptions and stamp duty concessions on the Victorian State Revenue Office website or by speaking to your friendly expert conveyancer at Settle Easy.
We recommend that you take the time to find out what stamp duty you may have to pay before making one of the biggest financial commitments of your life.
5. Let the experts help
There are so many decisions you need to make on the way to home ownership, but you don’t have to do it alone. Settle Easy’s expert local conveyancers understand the entire process of acquiring property in Victoria, including everything there is to know about stamp duty.
Our online platform streamlines the whole conveyancing process making it easier than ever to complete your property transaction.
If you have any questions about conveyancing in general or stamp duty in particular, why not ask the friendly team at Settle Easy – we’re ready to help you settle easy, 24/7.