Home Property & You Who is Eligible for Stamp Duty Exemption in VIC?

Who is Eligible for Stamp Duty Exemption in VIC?

Who is Eligible for Stamp Duty Exemption in VIC?

If you’re in the property market for a new home, you may be wondering who is eligible for stamp duty exemption in Vic. Stamp duty is a tax on property purchases. Stamp duty can add thousands of dollars to the cost of buying a home. Fortunately, there are several exemptions available to help you save money.

The Victorian Government and other state governments offer a range of stamp duty exemptions and concessions. The exemptions and concessions help eligible first home buyers, pensioners, and other eligible buyers reduce the cost of purchasing a property. For example, if you’re a first home buyer, you may be eligible for the First Home Owner Grant or a range of exemptions, concessions, and reductions. You can apply for the grant and other exemptions through the State Revenue Office (SRO). This office administers stamp duty in Victoria.

In addition to exemptions for first home buyers, there are other ways to reduce your stamp duty liability. For example, you may be eligible for a land transfer of property duty waiver if you’re purchasing a residential property with a dutiable value of $1 million or less. The SRO website has detailed information on all the exemptions and concessions available. In addition, there are calculators and other tools to help you work out your stamp duty liability.


Eligibility Criteria for Stamp Duty Discount or Exemption

If you are planning to purchase a property in urban or regional Victoria, you may be eligible for stamp duty exemption under certain circumstances. Here are the eligibility criteria for stamp duty exemption:

First-Home Buyers

If you are a first home buyer in Victoria and are purchasing a new or established property valued up to $600,000, you may be eligible for a full stamp duty exemption. If the property is valued between $600,001 and $750,000, you may be eligible for a stamp duty concession. The eligibility criteria for the first home buyer duty concession or exemption include:

  • You must be a permanent resident or an Australian citizen.
  • You must be at least 18 years of age.
  • You or your spouse must not have previously owned a property in Australia.
  • You must occupy the property as your principal place of residence within 12 months of settlement and continue to occupy it for at least 12 months.

Principal Place of Residence

If you are purchasing a property to use as your principal place of residence (PPR), you may be eligible for a stamp duty concession. The eligibility criteria for the PPR concession include:

  • You must be a permanent resident or an Australian citizen.
  • You or your spouse must not have previously owned a property in Australia.
  • You must occupy the property as your principle place of residence within 12 months of settlement and continue to occupy it for at least 12 months.

Pensioners and Concession Card Holders

If you are a pensioner or hold a concession card and are purchasing a new or established property valued up to $330,000, you may be eligible for a stamp duty exemption. If the property is valued between $330,001 and $750,000, you may be eligible for a stamp duty concession. The eligibility criteria for the pensioner and concession card holder duty exemption or concession include:

  • You or your spouse must hold a valid pensioner concession card or a health care card.
  • You must occupy the property as your principal place of residence within 12 months of settlement and occupy it for at least a 12 months continuous period.

Keep in mind that the eligibility criteria for stamp duty exemption or concession may change from time to time. It’s recommended that you check the current eligibility requirements before making a property purchase in Victoria.


Types of Properties and Transactions Eligible for Exemptions

Type of property

If you’re looking to buy a property in Victoria, you may be eligible for a stamp duty exemption or concession. Here are the types of properties and transactions that are eligible for exemptions:

New Residential Properties and Established Homes

If you’re a first home buyer, you may be eligible for a full exemption or a concession when purchasing a new or established home. The value of the property must be $600,000 or less to qualify for the full exemption. Properties valued from $600,001 to $750,000 may qualify for a concession.

Vacant Land and Off-The-Plan Purchases

If you’re buying vacant land or an off-the-plan property, you may be eligible for an off-the-plan stamp duty concession. The concession applies to properties with a dutiable value of up to $1 million.

Special Cases: Farms and Deceased Estates

If you’re purchasing a farm or a deceased estate, you may be eligible for a stamp duty exemption or concession. The exemption applies to primary production land, while the concession applies to other types of property.

The City of Melbourne has its own stamp duty rules. If you’re purchasing a property in Melbourne, be sure to check the specific requirements.

Contact us today so that we can provide more information on stamp duty exemptions and concessions. Be sure to ask about your eligibility before making an offer on a property.


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Calculating Your Stamp Duty and Applying for Exemptions

If you are a first home buyer, you may be eligible for stamp duty exemption or concession in Victoria. Understanding duty concession and reduction can help you save a significant amount of money during the property transaction.

Understanding Duty Concession and Reduction

First home buyers are eligible for a full exemption from paying stamp duty if the property value is less than $600,000. If the property value is between $600,001 and $750,000, you could receive a concessional rate. The amount of stamp duty you have to pay is calculated based on the dutiable value of the property. The dutiable value is the amount that is is greater between the market value and the contract price.

Residency Requirements and Settlement Date

To have the eligible benefits for the first home buyer duty exemption or concession, you need to be an Australian citizen or permanent resident. You also need to occupy the property as your principal place of residence within 12 months of settlement. The contract date must be on or after 1 July 2017, and the property must be located in Victoria.

How to Submit a Refund Application

If you have already paid the stamp duty and you are eligible for an exemption or concession, you can apply for a refund. You can submit a refund application online through Duties Online or by using the digital duties form. You need to provide proof of eligibility, such as a copy of contract of sale, and the property dutiable value. The State Revenue Office will assess your application and notify you of the outcome.


Frequently Asked Questions

What concessions do first home buyers get on stamp duty in Vic?

If you are a first home buyer in Victoria, you may be eligible for a full stamp duty exemption or a concession. The full exemption applies to homes valued below $600,000, while a concession applies to homes valued between $600,000 and $750,000. You can use the stamp duty calculator to find out how much you may need to pay.

How do pensioners qualify for a stamp duty exemption in Victoria?

Pensioners may be eligible for a full stamp duty exemption if they are buying a new home valued up to $330,000. If the home is valued between $330,001 and $750,000, a concession may apply. To be eligible, the pensioner must hold an eligible concession card and the home must be their principal place of residence.

Is there a stamp duty threshold below which I’m exempt in Victoria?

Yes, there is a threshold below which you may be eligible for a full stamp duty exemption. As of 2023, homes valued up to $600,000 are eligible for a full exemption, while homes valued between $600,001 and $750,000 may be eligible for a concession.

What are the conditions for stamp duty exemption when buying a home in Victoria?

To be eligible for a full stamp duty exemption when buying a home in Victoria, the home must be your principal place of residence, and you must not have owned a home in Australia before. If you are buying a home with someone else, they must also be eligible for the exemption.

How is stamp duty calculated for those eligible for concessions in Vic?

If you are eligible for a stamp duty concession in Victoria, the amount of duty you will need to pay will depend on the value of your home. You can use the stamp duty calculator to find out how much you may need to pay.

The cost of stamp duty can be a significant expense when buying a home, but there are concessions and exemptions available to help reduce this cost. By understanding who is eligible for these concessions and exemptions, this can help you save money and make the most of the housing market in Victoria.


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