Stamp Duty changes for Property Buyers Victoria, Australia 2013


Reduction Of Duty For Eligible First Home Buyers

A 50% discount on the amount of Duty payable was legislated, with it being brought in gradually over a few years.

This applies for dutiable transactions with a settlement date on or after 1 July 2011 and valued at not more than $600,000.
To be eligible for the duty reduction, the first home buyer must:

  • Be purchasing a principal place of residence (PPR).
  • Have received or be entitled to receive the First Home Owner Grant.
  • Must reside in the property for a continuous period of 12 months commencing within 12 months of settlement.

The schedule for the introduction of this discount was:

  1. 20 per cent reduction on 1 July 2011.
  2. 10 per cent reductions on 1 January 2013.
  3. 10 per cent reduction on 1 July 2013.
  4. 10 per cent reduction on 1 September 2014.

The final 10% discount on Stamp Duty comes into effect in September 2014, bringing the discount to 50%.

Duty rates from the Victoria Office of State Revenue

For dutiable transactions settled on or after 1 January 2013 and before 1 July 2013

Dutiable value of the PPR : Reduced rate of duty
$ 0 – $ 25,000 (1.4% of the dutiable value of the property) less 30%
$ 25,000 to $130,000 ($350 plus 2.4% of the dutiable value in excess of $25,000) less 30%
$130,000 to $440,000 ($2870 plus 5% of the dutiable value in excess of $130,000) less 30%
$440,000 to $550,000 ($18,370 plus 6% of the dutiable value in excess of $440,000) less 30%
$550,000 to $600,000 ($28,070 plus 6% of the dutiable value in excess of $550,000) less 30%

For dutiable transactions settled on or after 1 July 2013 and before 1 September 2014

Dutiable value of the PPR : Reduced rate of duty
$ 0 – $ 25,000 (1.4% of the dutiable value of the property) less 40%
$ 25,000 to $130,000 ($350 plus 2.4% of the dutiable value in excess of $25,000) less 40%
$130,000 to $440,000 ($2870 plus 5% of the dutiable value in excess of $130,000) less 40%
$440,000 to $550,000 ($18,370 plus 6% of the dutiable value in excess of $440,000) less 40%
$550,000 to $600,000 ($28,070 plus 6% of the dutiable value in excess of $550,000) less 40%

Figures copied from http://www.sro.vic.gov.au

My calculations from the above:

  • A $450,000 house purchased in March 2013 would pay $13,279 ($18,370 plus 6% of the value over $440,000) less 30%
  • A $450,000 house purchased in March 2014 would pay $11,382 ($18,370 plus  6% of the value over $440,000) less 40%
  • A $450,000 house purchased in March 2014 would pay $9,485 ($18,370 plus  6% of the value over $440,000) less 50%

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