You may be entitled to a concession from duty when you buy a property that you intend to live in as your home for a continuous period of 12 months, within 12 months after settlement.
Our land transfer (stamp) duty calculator and pensioner land transfer (stamp) duty calculator work out the land transfer duty that applies when you buy a Victorian property based on a number of factors, including this concession. You can also refer to land transfer (stamp) duty rates.
Eligibility
This concession is available to all home buyers (not just first home owners) whose property is valued up to $550,000 and who:
- start using the property as their PPR within 12 months of becoming entitled to possession of the property (which usually occurs at settlement), and
- live in the property for a continuous period of at least 12 months.
If you buy the property with others, at least one of you must occupy the property as your PPR. However, you can satisfy the requirements between you.
If these requirements are not met, duty will be assessed at the standard rate. We may, however, exercise discretion to vary the residence requirements where there is a good reason to do so.
Land is not considered to be occupied as a PPR unless there is a building on it that is designed and constructed primarily for residential purposes and which can be lawfully used as a PPR.
If you have received the PPR concession you must notify us in writing within 30 days of any changes in your circumstances that will result in the residence requirements not being met.
| Dutiable value of the PPR | Reduced rate of duty | Standard rate of duty | Difference |
|---|---|---|---|
| >$130,000* to $440,000 | $2,870 plus 5% of amount >$130,000 | $2,870 plus 6% of amount >$130,000 | Rate reduction of 1% |
| >$440,000 to $550,000 | $18,370 plus 6% of amount >$440,000 | Duty reduction of $3,100 |
* For properties valued at less than $130,000, duty is calculated on a sliding scale at the general rate. This starts at 1.4% for properties valued at $25,000 or less. For properties valued at more than $25,000 but less than $130,000 the rate is $350 plus 2.4% of the dutiable value that exceeds $25,000.
Vacant land contracts
This concession may apply if you have bought vacant land to build your home. For all transfers that complete on or after 16 December 2020, there is a new residence requirement for a vacant land transfer. You must move into your home by whichever of these dates occurs first:
- 12 months of the date you can lawfully live in it, which is usually the date the occupancy certificate is issued, or
- 36 months of the settlement date.
It does not matter when the contract for your purchase was entered into as long as the transfer completes on or after 16 December 2020.
In limited circumstances, we may vary this requirement.
For the purposes of assessing your eligibility for this concession, we only consider the value of the vacant land. We do not include the value of your building contract.
Related party transfers/nominations
The PPR concession is only available to genuine purchasers for adequate consideration.
This ensures duty relief is available only to purchasers who provide full consideration for a property purchased (or fractional interest purchased) and not to those who have already benefited by purchasing at a heavily discounted price or receiving the property as a gift.
For all sales between related or associated parties, additional evidence is required to ensure that adequate consideration has been paid:
- proof of payment of the purchase price (e.g. bank statements, loan agreements and receipts)
- evidence of the market value of the property, such as a:
- letter of appraisal from a licensed real estate agent, or
- valuation by a certified practising valuer who is a member of the Australian Property Institute or by a member of the Real Estate Institute of Victoria with sworn valuer accreditation.
First home buyers
If the home you buy is your first home and you satisfy the first home buyer eligibility requirements, you may be entitled to the first home buyer duty exemption or concession and/or the First Home Owner Grant.
