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Guide · Stamp Duty · VIC

Victoria — and the 5.5% trap.

Victoria's schedule has a quirk that catches a lot of buyers: between $960K and $2M, duty is calculated as 5.5% of the entire price — not just the portion above $960K. Here's the full schedule and what to watch for.

Reviewed · Adam King — 30 years in finance, Sunshine Coast

How VIC calculates it

Victoria calls it 'land transfer duty' rather than stamp duty, but the principle is the same. The dutiable value is the contract price or market value, whichever is higher. The structure is mostly marginal — but with one notable exception that catches buyers in the $960K–$2M band. In that band, duty is calculated as a flat 5.5% of the full purchase price, not the marginal rate over the band floor. On a $1M property this means $55,000 in duty. On a $1.5M property, $82,500. The transition into and out of this band creates duty cliffs worth understanding before you go to contract.

VIC land transfer duty — standard schedule

Dutiable valueDuty
$0 – $25,0001.4% on full value
$25,001 – $130,000$350 + 2.4% over $25,000
$130,001 – $960,000$2,870 + 6.0% over $130,000
$960,001 – $2,000,0005.5% of the full dutiable value
Over $2,000,000$110,000 + 6.5% over $2,000,000

Indicative VIC land transfer duty as at 2026-05. Source: State Revenue Office Victoria. The $960K–$2M band is a flat 5.5% of the full price — not marginal.

Worked example — $850K purchase, Geelong

  • Standard duty

    $46,070

    $2,870 + 6.0% × $720,000 ($850K − $130K)

  • first-home buyer exemption (≤$600K)

    $0

    Not eligible at $850K — over the threshold

  • first-home buyer exemption (≤$600K reference)

    $0

    If purchased at $600K as first-home buyer, duty would be $0

  • PPR concession

    Partial

    Owner-occupiers under $550K get an additional concession

The $960K trap

$959,999 vs. $960,000 — *the flat-band jump*.

Buy at $959,999 and you pay around $52,670 in duty. Buy at $960,000 and you pay $52,800 (5.5% flat). The marginal-to-flat transition creates a discrete jump of roughly $130 right at the threshold. Above the band, $2,000,000 lands at $110,000 (5.5%); $2,000,001 lands at $110,000.07 (5.5% + 6.5% on $1). It smooths out at the top but the bottom of the flat band is a contract-negotiation point worth knowing.

First-home buyer concession

VIC's first-home concession is more modest than QLD's: full exemption up to $600,000, tapered concession from $600,001 to $750,000. Applies to both new and existing homes used as principal residence. Eligibility: you and any co-buyer must never have owned property in Australia; you must live in the home for at least 12 continuous months starting within 12 months of settlement; at least one buyer must be an Australian citizen or permanent resident. For first-home buyers buying off-the-plan, the dutiable value is reduced by the construction work done after the contract date — meaning early off-the-plan signings can substantially reduce or eliminate duty regardless of the final price.

Other VIC concessions

  • PPR concession (non-first-home buyer): Owner-occupiers buying for less than $550K get an additional concession on top of the standard schedule.
  • Off-the-plan concession: Duty calculated only on land + work-completed-to-date at contract date. Significant savings for early off-the-plan buyers.
  • Pensioner / concession-cardholder duty reduction: Eligible Commonwealth concession-card holders get a full exemption on a PPR purchase valued up to $600,000, with a partial reduction from $600,001 to $750,000 (contracts signed on or after 1 July 2023 — the older $330K full / $750K partial thresholds apply only to contracts signed before that date). This is a separate scheme from the first-home buyer concession, with its own card-holder eligibility test, and it's a once-only benefit.
  • Foreign purchaser surcharge: Additional 8% duty for foreign buyers, on top of standard rates.
  • Vacant land for build: First-home buyers can apply the first-home buyer concession to vacant land where they will build a PPR.

When you pay

Duty is payable within 30 days of settlement. Your solicitor or conveyancer handles the calculation through Duties Online (the SRO Victoria portal) and remits payment on or before settlement. The title can't be registered until duty is settled. For buyers in the $960K–$2M flat-rate band, this is one of the genuine cases where a marginal price reduction (e.g. negotiating from $980K to $955K) materially changes the duty payable — not just by the saved purchase price but by the bracket reset. Worth modelling carefully.

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General information only — not personal credit advice. Rates and figures shown are indicative and subject to confirmation against current lender pricing and policy.