Since July 1, 2017 Stamp Duty Concessions have been applied to eligible applicants who are purchasing their first home. It was a way for the Victorian Government to help out our aspiring homeowners to get them into the market.
But, what exactly is a stamp duty concession Victoria? What does stamp duty apply to? What are the eligibility requirements? In this article, I will be discussing everything you need to know about stamp duty concessions. I will take you through everything step by step, by the end of this article you should have a better understanding of what Stamp Duty actually is and how it applies to you.
Stamp Duty Concession Victoria: What Is It?
Stamp duty is a payment you make to a state or territory government when buying a property. It is generally calculated based on the value of the property.
In Victoria, you may be eligible for, and receive more than one concession, reduction, or exemption from stamp duty for your property. These include
- First-home buyer duty concession. This is a one-off duty exemption for a principal place of residence (PPR) valued up to $600,000, or a concession for a PPR with a value from $600,001 to $750,000. This duty concession is separate from the First Home Owner Grant. Note that the grant is a payment made to you; on the other hand, the first home buyer duty concession is a reduction in the amount of land transfer duty that you pay.
- First-home buyer reduction. This is a one-off duty reduction of up to 50 percent for a PPR valued up to $600,000 if you entered your contract before July 1, 2017.
- First-home owner with family concession. This is a one-off duty concession for properties valued up to $200,000 or less.
- Pensioner concession. This is a one-off duty concession for a new or established home valued up to $750,000.
- Principal place of residence (PPR) concession. This is a duty concession for when a property you purchase (valued up to $500,000) will be your primary home.
- Off-the-plan concession. This is a duty concession for an off-the-plan property – either as a refurbished lot, or as a land and building package.
To be eligible for the First Home Buyer Stamp Duty concession, you need to
- Your home has a dutiable value of $600,000 or less (first home buyer duty exemption) or $600,001 to $750,000 (first home buyer duty concession).
- All property buyers meet the First Home Owner Grant eligibility criteria and at least one buyer satisfies the residency requirement.
Note: Unlike the First Home Owner Grant, it does not matter whether you purchase a new or established home.
Stamp duty varies between states and territories. For more information about stamp duty concession Victoria, don’t hesitate to contact me for assistance. I’d be happy to help you better understand whether or not you’ll be eligible for duty concessions.
Will Bell Mortgage Broker is a mortgage and finance broker based in Melbourne specializing in residential home loans. Will is all about the average Australian understanding just enough of the broader economy to take action on your own personal economy. He is the host of the My Personal Economy Podcast which you can check out here.
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