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Stamp Duty Exemptions Explained

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Many people don’t quite realise how much of a considerable cost stamp duty can be when purchasing a property. However, it is critical to have an understanding of all the potential costs you could be facing when buying a property.

As Melbourne’s CBD apartment sales experts, we are here to help you understand the costs involved with purchasing a property and how you could potentially save thousands by buying the right property at the right time.

What is stamp duty?

Stamp duty is a government tax placed on certain transactions like property purchases, car purchases or even insurance policies. Stamp duty when applied to real estate is also known as “land transfer duty”. Stamp duty is often due 30 days after a property settlement and is typically managed by your solicitor or conveyancer on your behalf.

How much does stamp duty cost?

The cost of stamp duty is dependant on many factors, where you have purchased, the type of residence, the cost of the residence, whether you are a first home buyer or a foreign purchaser.

It also depends on the ‘dutiable value’ of the property you have purchased. The dutiable value is either the price you paid for the residence or its market value. This applies to a property transfer, whether it is purchased, acquired through a trust or gifted.

Stamp duty is calculated on a sliding scale starting at 1.4% of the dutiable value of the property and is based on different price brackets.

What is the Victorian government doing to alleviate costs for buyers?

The Victorian Government has committed to alleviating some of the additional costs that buyers face when purchasing a property between now and June 30, 2022.

Purchasers in Melbourne’s CBD, Carlton, Southbank, Docklands, North Melbourne, and West Melbourne will benefit from the commitment the government has made to waive certain taxes.

What are the stamp duty exemption?

Buyers who purchase a brand-new apartment or an apartment off-the-plan before 30 June 2022, will be eligible for a 50% stamp duty discount, while other purchasers within the City of Melbourne will pay $0 stamp duty before 30 June, 2022 on a property that have been on the market for 12 months or longer and priced below $1 million. With this commitment from the government, buyers could save up to $55,000.

What other factors should buyers consider?

The Victorian government has also created the Victorian Homebuyer Fund shared equity scheme. This scheme means that eligible homeowners will only need to pay a 5% deposit and will also receive a contribution from the government of up to 25% towards the price of the property they choose to buy.

There is also a $10,000 First Homeowner Grant is available when you buy your first home below the threshold of $750,000.

 

How do I find out if I am eligible for the stamp duty exception?

If you are unsure about your eligibility for any exceptions or concessions speak to a qualified property professional.

At Colliers Residential Victoria our property experts can guide you on purchasing a property and give you access to Melbourne’s best new apartments.

Contact us to discuss how you could save thousands on a property purchase today. 


Related Experts

Tim Storey

Managing Director, Victoria | Residential

Melbourne CBD (Residential)

Tim launched PRDnationwide in Victoria in 1999, a market-leading residential property business. In 2006, the business was acquired and merge to become Colliers Residential Victoria in partnership with fellow Director Brett Griffith.

In his role as Managing Director over the past two decades, Tim has developed an unmatched level of knowledge and experience, enabling him to build the most successful and highest performing team in the residential sector.

Tim is dedicated to delivering industry-leading service and solutions across Build-to-sell (Project Marketing), Build-to-rent, Development Site Sales, Research and Strategic Advisory.

Under Tim’s leadership, the business has represented hundreds of large private companies, publicly listed companies, government departments and institutions.

Tim is responsible for driving more than $20billion worth of apartment sales, he has guided his team with their involvement in more than 70% of the major build-to-rent transactions in the state and built Victoria’s leading Development Sites team.

Tim’s staff recognise him as a forward-thinking leader, who has created a stable and supportive culture where all team members are recognised for their contribution.

“I am proud of the business we have built, the relationships we have forged and the team we have grown over the past 20-odd years. I look forward to maintaining our market-leading position and continuing to set the standard for the industry”– Tim Storey

About Colliers Residential Victoria

For over 20 years, Colliers Residential Victoria has been a leading force within the residential property industry, offering clients access to global networks and an unrivalled level of experience and knowledge. With expertise spanning Build-to-sell (Project Marketing), Build-to-rent, Development Site Sales, Research and Strategic Advisory, the business has been involved in Melbourne’s largest, most defining projects. Colliers Residential Victoria has represented hundreds of developer clients, sold more than $20billion worth of apartments, helped pioneer the Build-to-rent sector and maintained the number 1 position in the Development Sites market with more than 30% market share.

View expert

Brett Griffith

Director | Residential

Melbourne CBD (Residential)

Brett commenced with Colliers in 1998, before joining forces with Managing Director Tim Storey in 2006 to build the market-leading Colliers Residential Victoria business.

As a Director of the business for the past 23 years, Brett has worked across all aspects of residential property including Build-to-sell (Project Marketing), Build-to-rent, Development Sites, Research and Strategic Advisory.

He has established a long list of loyal developer clients who continue to rely on his strategic advice and expertise, including Cbus Property, CEL Australian, LAS Group, ICD Property, 3L Alliance, Riverlee and many more.

During Brett’s time as Director and under his leadership, the business has sold more than $20billion worth of apartments, been involved in more than 70% of the major build-to-rent transactions in the state and established Victoria’s leading Development Sites team.

Brett’s is known as an encouraging and supportive leader, who brings out the best in his team and delivers exceptional results for his clients under all market conditions.

“As a leader within the business, it is incredibly satisfying to see how far we have come in the last 20 years. We have always been focused on delivering nothing but the best for our clients and the strong relationships we have built are testament to that unwavering focus.” – Brett Griffith

About Colliers Residential Victoria

For over 20 years, Colliers Residential Victoria has been a leading force within the residential property industry, offering clients access to global networks and an unrivalled level of experience and knowledge. With expertise spanning Build-to-sell & Project Marketing, Build-to-rent, Development Site Sales, Research and Strategic Advisory, the business has been involved in Melbourne’s largest, most defining projects. Colliers Residential Victoria has represented hundreds of developer clients, sold more than $20billion worth of apartments, helped pioneer the Build-to-rent sector and maintained the number 1 position in the Development Sites market with more than 30% market share.

View expert