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Navigating Stamp Duty Exemptions in Victoria

03 May 2024
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At Barry Plant, we understand the financial considerations that come with purchasing property in Victoria. Stamp duty is a significant factor in these transactions, but did you know that certain categories of buyers may be eligible for exemptions?

In collaboration with our trusted Mortgage Broker Partner, Inovayt, we're here to guide you through the world of stamp duty exemptions in Victoria.

Understanding Stamp Duty in Victoria

Firstly, let's clarify what stamp duty entails. Also known as land transfer duty, stamp duty is a tax imposed by the state government when acquiring property. The amount varies based on the property's dutiable value and eligibility for discounts or concessions. Despite how you acquire the property, whether by purchase, gift, trust, or at a discounted rate, stamp duty applies.

Why is it Important?

You might question the necessity of paying stamp duty on top of a significant house deposit. Essentially, revenue generated from stamp duty supports vital services like healthcare, education, and transport. Moreover, it serves to regulate the property market, discouraging speculative investments and maintaining market equilibrium.

Types of Stamp Duty Exemptions in Victoria

First Home Buyer Exemption

This well-known concession is available for properties valued at $600,000 or less, granting a full exemption. For properties valued between $600,001 and $750,000, a concession applies on a sliding scale. However, properties exceeding $750,000 don't qualify for relief under this scheme.

Principal Place of Residence (PPR) Exemption

Beyond first home buyers, those purchasing a property intended as their primary residence may also qualify for an exemption. To be eligible, the property's dutiable value must fall between $130,000 and $550,000, with the intent to occupy it continuously for at least 12 months within a year of settlement.

Off-the-Plan Concession

Buying off-the-plan, such as house and land packages, may make you eligible for this concession. It reduces the dutiable value of your property, calculated as the contract price minus construction costs incurred post-contract.

Pensioner Concession

Eligible pensioners may receive a one-time exemption for properties valued at $330,000 or less, or a concession for properties valued between $330,001 and $750,000.

The Process of Claiming Stamp Duty Exemptions in Victoria

Confirm Eligibility

Check the eligibility criteria for the desired exemption. You can use Barry Plant's handy Stamp Duty Calculator here >

Gather Documents

Compile necessary documents like payslips, identification, and financial statements to support your application.

Seek Professional Advice

Receive expert guidance from Inovayt mortgage brokers to navigate through available exemptions and choose what suits you best.

Submit Application

With assistance from your Inovayt broker, submit your exemption application accurately and efficiently.

Await Approval

Expect a processing period of a few weeks for approval from the relevant department.

Complete Purchase

Once approved, proceed with confidence to purchase your property.

How Inovayt Can Assist with Stamp Duty Exemptions in Victoria

Inovayt brokers are well-versed in the intricacies of stamp duty exemptions in Victoria. They can provide tailored advice and support throughout the application process, ensuring you maximise available benefits and make informed decisions regarding your property investments.

Please note that the information provided in this guide is believed to be accurate at the time of publication. However, as financial regulations and policies may change over time, it is advisable to seek independent financial advice before making any significant decisions or commitments based on this information.

03 May 2024
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