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AFC Online is proud in providing the Finance and Real Estate Industries with a snap shot on hot topic and changes to market conditions. Our Banking News and Views section of the Website is updated regularly! |
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In this article we will review what duties are chaged in Victoria, in particlulare focusing on the Stamp Duty carged for the purchase of a propaerty. We will look at purchases made as a First Home Owner, an Investor and as an Owner Occupied purchesor, purchasing your second home. We will further provide you with the current rates associated to each group.
The State Revenue Office (SRO) is the Victorian Government's major tax collection agency. They administer Victoria's taxation legislation and collects a range of taxes, duties and levies and they also administers the First Home Owner Grant.
Stamp Duty in Victoria is charged on a range of different transactions under the Duties Act 2000, including transfers of land, transfers of motor vehicles, declarations of trust, land rich acquisitions and livestock sales. Duty is also charged on general insurance, life insurance and the transport accident charge.
All transfers of land (including gifts) attract duty. Unless an exemption or concession applies, the transaction is charged with duty based on the greater of:
The purchaser or transferee is liable to pay the duty within 3 months of settlement. - Your Solicitor or Conveyancor will be able to assist and guide you through the process.
The stamp duty rates are different depending on when the contract to purchase property is entered into:
For contracts entered into on or after 6 May 2008 - Stamp duty charged is on a sliding scale down from a top rate of 5.5% for property valuedmore than $960,000 to a base rate of 1.4% for properties valued not more than $25,000.
For contracts entered into before 6 May 2008 - Stamp duty charged is on a sliding scale down from a top rate of 5.5% for property valued more than $870,000 to a base rate of 1.4% for properties valued not more than $20,000.
Please use our Stamp Duty Calculator to calculate the duty payable on your transaction.
Below you will find the current Stamp Duty parameters for the purchase of principal place of residence:
| For the purchase of home (i.e. Principal place of residence) contracts entered intoor after 6 May 2008. Including First Home Owners. | |
Dutiable Range - Value |
Current Rates |
| $0 - $25,000 | 1.4 per cent of the dutiable value of the property |
| $25,001 - $130,000 | $350 plus 2.4 per cent of the dutiable value in excess of $25,000 |
| $130,001 - $440,000 | $2,870 plus 5 per cent of the dutiable value in excess of $130,000 |
| $440,001 - $550,000 | $18,370 plus 6 per cent of the dutiable value in excess of $440,000 |
| $550,001 - $960,000 | $28,070 plus 6 per cent of the dutiable value in excess of $550,000 |
| More than $960,000 | 5.5 per cent of the dutiable value |
Below you will find the current Stamp Duty parameters for the purchase of Company / Trusts and Investments:
| for the purchase of Company / Trusts and Investments: for contracts entered into on or after 6 May 2008. Including First Home Owners. | |
Dutiable Range - Value |
Current Rates |
| $0 - $25,000 | 1.4 per cent of the dutiable value of the property |
| $25,001 - $130,000 | $350 plus 2.4 per cent of the dutiable value in excess of $25,000 |
| $130,001 - $960,000 | $2,870 plus 6 per cent of the dutiable value in excess of $130,000 |
| More than $960,000 | 5.5 per cent of the dutiable value |
It should be noted that First Home Owners are still entitled to the first home owners grant provided by the federal government, but the additional bonus schemes have know been pulled out of the market. Saying that, consetions may still apply and further clarification should be sought from your Solicitor or Conveyancor. Alternatively the Financial Institution or Finance Broker can also guide you to the appropriate contacts.
Feel free in book marking this page for future reference.
For more information please do not hesitate in Contacting Us and one of our people will be able to assist.