Stamp Duty and Land Transfer Duty in Victoria Explained

Land transfer duty and other property taxes and costs

Land transfer duty is only one of a number of imposts and costs that can affect a Victorian property transaction. It is distinct from — and assessed separately to — the following:

• Land tax — an annual state tax under the Land Tax Act 2005 (Vic) on the aggregated taxable value of Victorian land above a threshold, with the PPR generally exempt.
• Absentee-owner surcharge — an annual land-tax surcharge on absentee owners, distinct from foreign purchaser additional duty.
• Vacant residential land tax — an annual tax under the Land Tax Act 2005 (Vic) on residential land that is vacant for more than six months in the preceding calendar year (scope expanded in recent years).
• Windfall gains tax — imposed under the Windfall Gains Tax and State Taxation and Other Acts Further Amendment Act 2021 (Vic) on significant uplifts in value from certain rezonings.
• Commercial and Industrial Property Tax (CIPT) — an annual tax phasing in for commercial and industrial land under the Commercial and Industrial Property Tax Reform Act 2024 (Vic), replacing further land transfer duty on qualifying land after the transition period.
• GST — a Commonwealth tax under the A New Tax System (Goods and Services Tax) Act 1999 (Cth) that may apply to new residential premises, commercial property and going-concern sales.
• Capital gains tax (CGT) — a Commonwealth income-tax rule under the Income Tax Assessment Act 1997 (Cth), typically relevant to the vendor.
• Land Use Victoria registration fees, PEXA settlement fees and conveyancing fees — separate from duty and assessed on their own scales.

These regimes have different bases, different assessment and payment procedures, and different objection and refund rights. Do not conflate them.

How dutiable value is determined

Duty is calculated on the dutiable value of the transaction. Dutiable value is generally the greater of the consideration paid and the unencumbered value of the property at the date of the dutiable transaction. "Consideration" is defined broadly and can include assumption of debt, cross-transfers and non-monetary benefits. "Unencumbered value" is market value assessed without regard to mortgages or other encumbrances.

For arm's-length purchases at market, the contract price usually represents dutiable value. For related-party, non-arm's-length or nil-consideration transfers, the Commissioner may require evidence of value — which, depending on the transaction, may include an independent sworn valuation. Under-declaring value on a related-party transfer can trigger reassessment, interest and penalty tax under the Taxation Administration Act 1997 (Vic).

Current general rates (non-PPR)

For contracts entered into on or after 1 July 2021, the general (non-PPR) land transfer duty rates are (current at 21 July 2026, per SRO):

• $0 – $25,000: 1.4% of dutiable value.
• $25,001 – $130,000: $350 plus 2.4% of the excess over $25,000.
• $130,001 – $960,000: $2,870 plus 6% of the excess over $130,000.
• $960,001 – $2,000,000: a flat 5.5% of dutiable value.
• Over $2,000,000: $110,000 plus 6.5% of the excess over $2,000,000.

Illustrative calculations (no concession, general rates, current at 21 July 2026): duty on a $1,200,000 purchase is $66,000 (5.5% of $1.2m); duty on a $3,000,000 purchase is $175,000 ($110,000 plus 6.5% of $1m).

PPR concessional rates

For PPR purchases with a dutiable value in the range $130,000–$550,000, a separate concessional rate schedule applies: $130,001–$440,000 is charged at $2,870 plus 5% of the excess over $130,000, and $440,001–$550,000 is charged at $18,370 plus 6% of the excess over $440,000. Above $550,000, the general rates apply. The PPR concession requires occupation as the PPR for at least 12 continuous months within 12 months after settlement. The SRO's system applies the most beneficial concession for which the transaction is eligible.

First home buyer exemption and concession

Eligible first home buyers receive a full exemption from duty on a PPR purchase with a dutiable value up to $600,000, and a tapered concession for values from $600,001 to $750,000 (current at 21 July 2026). The principal eligibility criteria are:

• no purchaser has previously held a relevant interest in residential property in Australia in the circumstances specified by the SRO;
• each purchaser is a natural person (with limited exceptions);
• a purchaser will occupy the property as their PPR for at least 12 continuous months within 12 months after settlement;
• the dutiable value does not exceed $750,000; and
• all purchasers on title meet the eligibility criteria (co-purchasing with a non-eligible party can disqualify the concession).

The first home buyer duty concession is separate from the First Home Owner Grant, which is a distinct cash grant for new homes with its own criteria and thresholds.

Pensioner and concession-cardholder duty reduction

For contracts signed on or after 1 July 2023, holders of an eligible concession card (including pensioners) may be entitled to a once-only duty exemption on a PPR purchase with a dutiable value of $600,000 or less, and a once-only tapered concession for values from $600,001 to $750,000 (current at 21 July 2026). The card must be held at the relevant time and the property must be occupied as the cardholder's PPR in accordance with the statutory conditions. Different rules apply to contracts signed before 1 July 2023.

Off-the-plan duty concession

The off-the-plan concession reduces the dutiable value of an eligible strata purchase by the value of construction or refurbishment carried out on or after the date of the contract. Because a substantial part of the price for an off-the-plan lot is often attributable to as-yet-unbuilt construction, the concession can materially reduce the duty payable — the amount of reduction depends on the stage of construction at the contract date.

A temporary all-buyer concession applies to eligible contracts for apartments, units and townhouses in a registered or proposed plan of subdivision entered into on or after 21 October 2024 and before 21 April 2027. During the temporary window the concession is available regardless of price or buyer type. Outside that window, the ordinary off-the-plan concession is limited to PPR or first-home-buyer contracts within the prescribed dutiable-value thresholds.

An off-the-plan purchaser should obtain a written calculation of the expected concession from their lawyer or conveyancer before signing. The concession does not apply to sub-sales.

Foreign purchaser additional duty

Foreign purchaser additional duty (FPAD) is a surcharge on the dutiable value of the residential component of an acquisition by a foreign natural person, a foreign corporation or a trustee of a foreign trust. For contracts, transactions, agreements and arrangements entered into on or after 1 July 2019, the surcharge rate is 8% (current at 21 July 2026). It applies on top of standard land transfer duty and, where relevant, on top of landholder duty.

• Foreign natural person: an individual who is not an Australian citizen, a permanent resident ordinarily resident in Australia in the circumstances specified by the SRO, or a New Zealand citizen with a Special Category (subclass 444) visa satisfying the relevant test (requirements for New Zealand citizens changed for settlements from 26 November 2025 — check the SRO's current guidance).
• Foreign corporation: a corporation in which a foreign person or another foreign corporation has a controlling interest.
• Foreign trust: a trust in which a foreign person, foreign corporation or trustee of another foreign trust has a substantial interest. The SRO's practice for discretionary trusts is that the trust is a foreign trust where a potential beneficiary is a foreign person, unless the deed irrevocably excludes foreign beneficiaries.

Discretionary trust deeds intended to hold residential property should be reviewed and, where necessary, amended before contract. FPAD is a duty imposed on the acquisition and is distinct from the absentee-owner land-tax surcharge, which is an annual land-tax impost on absentee owners.

Related-party and family transfers

A family relationship does not, of itself, create or defeat an exemption. Related-party and nil-consideration transfers are generally assessed on unencumbered value, and evidence of value may be required. Specific exemptions and concessions relevant to family transfers include:

• Spouse or domestic partner PPR transfer: a transfer of a PPR between spouses or domestic partners may be exempt, subject to the statutory conditions in Chapter 2 of the Duties Act 2000 (Vic).
• Family Law Act transfers: a transfer made in accordance with an order of the Federal Circuit and Family Court of Australia or a binding financial agreement under Part VIIIA or Part VIIIAB of the Family Law Act 1975 (Cth) may be exempt, subject to the statutory conditions.
• Deceased estate transfers: a transmission application from a deceased proprietor to the legal personal representative, and a transfer from the legal personal representative to a beneficiary entitled under the will or the rules of intestacy, may be exempt. A survivorship application is also generally free of duty. Where a beneficiary takes more than their strict entitlement (for example, taking the home in exchange for cash to other beneficiaries), the excess may be dutiable at market value; specific structuring advice is warranted.
• Family farm: intergenerational transfers of land used for primary production may be exempt where the strict statutory conditions are met.

These exemptions have detailed requirements and documentary conditions. Do not assume a family or informal arrangement qualifies without checking the statutory criteria.

Family-law transfers following separation

The Family Law Act exemption is important for separating couples: a transfer of property to effect a property division authorised by consent orders, contested orders or a binding financial agreement is generally exempt from duty, subject to the statutory conditions in the Duties Act 2000 (Vic). An informal handshake agreement, by contrast, will not attract the exemption. See our guide on property settlement after separation.

Deceased estates

For deeper coverage of the mechanics of deceased-estate real property, see our guides on real property in deceased estates and the executor's guide to estate administration in Victoria. A deed of family arrangement structured to fall within the SRO's exempt categories may be required where beneficiaries wish to redistribute estate real property.

Trusts and land transfer duty

Trust transactions can be dutiable in a number of ways, including:

• Declarations of trust over dutiable property.
• Transfers into trust, subject to limited exemptions (including, in prescribed circumstances, transfers from an apparent purchaser (bare nominee) to the real purchaser).
• Changes of trustee under section 33 of the Duties Act, subject to strict evidentiary conditions and no change in beneficial ownership.
• Distributions from trusts to beneficiaries, with outcomes depending on the nature of the trust and the beneficiary's interest.

The SRO has published rulings covering many common scenarios. Any trust transaction touching Victorian land warrants specific duty advice before the transaction is structured.

Nominations and sub-sales

A nomination — where a purchaser under a contract substitutes another entity to take the transfer at settlement — does not automatically attract additional duty. Whether additional duty is payable is governed by the sub-sale provisions in Chapter 2, Part 4A of the Duties Act 2000 (Vic), which may impose duty on the second transaction where the statutory criteria are met. Relevant factors include whether there is additional consideration flowing to the original purchaser, whether land development has occurred between contract and nomination, and the particular chain of transactions (including options). Nominating a related trust or company for asset-protection or tax reasons is a common trigger for the sub-sale rules — obtain advice before executing a nomination.

Companies, unit trusts and landholder duty

The landholder duty regime in Chapter 3 of the Duties Act 2000 (Vic) captures indirect acquisitions of Victorian land through interests in companies and unit trust schemes. A "landholder" is a company or unit trust scheme, private or public, that has Victorian land holdings of an unencumbered value of $1 million or more.

A relevant acquisition is generally an interest of 50% or more in a private company, 20% or more in a private unit trust scheme (or a wholesale unit trust scheme), or 90% or more in a public landholder. Aggregation and tracing rules apply to associated acquisitions and to interests held through linked entities and discretionary trusts. Duty is calculated on the proportional unencumbered value of the underlying land holdings, at general rates, with FPAD applied where relevant. Statutory exemptions and concessions apply in prescribed circumstances.

Landholder duty is easily overlooked in share sales, capital raisings, management buy-outs and intra-group restructures. Any transaction involving the acquisition of shares or units in an entity holding Victorian land warrants specialist duty advice.

Commercial and industrial land — CIPT transition

From 1 July 2024, Victoria is transitioning commercial and industrial land to the annual Commercial and Industrial Property Tax (CIPT) regime under the Commercial and Industrial Property Tax Reform Act 2024 (Vic). In broad terms, the first qualifying transaction after 1 July 2024 remains subject to land transfer duty at the existing rates (with a transition loan option through Treasury Corporation of Victoria), and after the statutory transition period the land moves into the CIPT regime, under which subsequent transfers of the land are not subject to further land transfer duty but the land is instead subject to an annual CIPT. The rules around entry into the regime, changes of use, mixed-use land and consolidation are detailed and evolving — obtain specific advice for any commercial or industrial transaction.

Timing, payment, interest and penalty tax

For a standard contract of sale, the liability to duty arises on the contract date, and duty is generally paid within 30 days of settlement through the PEXA electronic settlement platform (using the Digital Duties Form and Duties Online). Different timing applies to non-conveyancing dutiable transactions and to landholder acquisitions.

Duty paid late attracts interest at the SRO's published rates from the day after the due date. Penalty tax may be imposed under the Taxation Administration Act 1997 (Vic) at rates that depend on the nature of the default and any voluntary disclosure. Voluntary disclosure before an SRO investigation commences may reduce penalty exposure.

Objections, review and refunds

A taxpayer may object to an SRO assessment in accordance with Part 10 of the Taxation Administration Act 1997 (Vic), typically within 60 days of the assessment notice. The Commissioner will reconsider and issue a decision, with further review rights to VCAT or the Supreme Court subject to statutory time limits. Refunds and reassessments are statutory and ground-dependent — overpayment is not automatically refundable, and time limits apply.

Practical examples

The following examples use the general rates current at 21 July 2026 and are illustrative only. They assume arm's-length dealings and stated dutiable values.

Example 1 — General rates, no concession. A $1,200,000 non-PPR residential purchase is dutied at a flat 5.5% of dutiable value, giving duty of $66,000.

Example 2 — Off-the-plan concession. A contract signed within the temporary window for a $1,400,000 apartment where the value of construction carried out on or after the contract date is $1,100,000 has a dutiable value of $300,000 after the concession. Duty on $300,000 at general rates is $2,870 + 6% of $170,000 = $13,070. Eligibility depends on satisfying the statutory criteria and the value of works actually carried out after contract.

Example 3 — Related-party transfer. A transfer of a $1,500,000 investment property from parents to an adult child for nil or nominal consideration is dutied on unencumbered value of $1,500,000. Duty is $82,500 (5.5% × $1.5m). There is no general "love and affection" exemption.

Example 4 — Family Law Act transfer. A transfer of a $1,200,000 former family home and a $600,000 investment unit between separating spouses, made in accordance with consent orders and satisfying the statutory conditions, may be exempt from duty. General rates would otherwise produce duty of $66,000 on $1,200,000 and $31,070 on $600,000 ($2,870 + 6% × $470,000).

Example 5 — Foreign purchaser. A $1,800,000 residential apartment acquired by a foreign purchaser attracts general duty of $99,000 (5.5% × $1.8m) plus FPAD of $144,000 (8% × $1.8m), totalling $243,000.

When to obtain legal advice

Legal advice is particularly important where a transaction involves any of the following:

• acquisition by a trust (particularly a discretionary trust) or a company;
• a purchaser, trust or corporation that may be foreign for FPAD purposes;
• a transfer between family members other than a spouse or domestic partner PPR transfer;
• a transfer arising out of separation or divorce — the exemption depends on there being an authorising order or agreement in place;
• a deceased-estate distribution where a beneficiary will take more than their strict entitlement;
• a proposed nomination on a contract of sale;
• a share or unit acquisition in an entity that holds Victorian land (landholder duty);
• a commercial or industrial property transaction subject to the CIPT transition; or
• a disputed SRO assessment or a proposed objection.

Parke Lawyers' property and conveyancing team advises on duty assessments, concession claims, foreign purchaser issues, nominations, landholder transactions, family-law and deceased-estate transfers and SRO objections across Victoria. See our conveyancing and property services page and our commercial and business law services page, or contact Julian McIntyre directly. Related Information Centre coverage includes our guides to Section 32 vendor statements, buying property in Victoria, selling property in Victoria, buying commercial property, owners corporation disputes, easements and restrictive covenants.

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