Stamp duty concessions Vic

hi there,

Does anyone know how to work out stamp duty concessions on PR Victorian unit? I know there are concessions but not sure how to work it out. Price 685k

Matt

 

Land transfer (stamp) duty calculator | State Revenue Office

 

It's really just a discount of the stamp duty you're wondering about, and there's a gazillion calculators out there. The most appropriate one would be the calculator on the Victorian Office of State Revenue:

Land transfer (stamp) duty calculator

The stamp duty for a first home buyer on a purchase price is $20,496.

If you're not a first home buyer, then it would be $36,170.

 

If it’s off plan is it less?

 

Depends when the property was purchased.

Off-the-plan sales concession | State Revenue Office

The stamp duty is based on the value of the property at the time the contract is signed (if it's a first home). The builder usually provides a declaration to say what this value is.

As a first home buyer you'd likely also get the first home owners grant of $10,000 for an off the plan property worth less than $750,000.

 

I am struggling with this calculator. As it appears if I am looking at a property in the 800-900k range I do not get any benefit. I was under the impression that the stamp duty was eventually calculated on the price of property -600k.

Is this a punishment for not finding a property within 600K?

 

600k and below all stamp duty is waived. From 600-750k it's an almost linear sliding scale (at 750k and above, you pay full stamp duty).

I haven't cared to look into the policy discussion, but my assumption was that this limit is to put a disincentive for FHB's to over leverage.

From my experience of monitoring the sub 750k market this policy has been a bad idea, because it triggered a very quick boost in price to this market segment, so unless you bought property in the first 3 months of the policy introduction then there was no overall cost benefit to FHB's.

 

I am looking to buy something in the next few months. However, this discovery of stamp duty will push me back by few more months.

Anyone has an idea how some of the new property developers are selling without stamp duty.

 

I suspect the developers may have utilized the VIC OTP concession if it's brand new. More info here:
First Home Owner | State Revenue Office

Cheers,
David

 

Thanks. Lot of good information here.

 

@Experts - I have another question on stamp duty. I was looking to purchase a block of land in the range of 600-650K. I am a FHB. I entered the deal thinking my stamp duty will be exempted till 600K and I will need to pay stamp duty on the remaining amount e.g. 650 - 600 = 50K.
However, my mortgage broker just informed me that I will have to pay stamp duty upfront on 650K and claim back refund after I have completed the build.
This puts me on back foot as that is another 35K extra which I do not have now. That will make me go for 85 - 90% loan + LMI with some harsh interest rates.
Is this the correct scenario that while buying standalone land as FHB I have to pay the full stamp duty?

 

It may or may not be eligible when built. The concession is a first home buyer concession. Buying land is part of the equation. Form 61 is used to apply for refunds.

Differences between common duty exemptions and concessions and the first home owner grant | State Revenue Office

 

If it's a separate land purchase, then house build, that's generally how it works in Victoria, although I believe you only pay stamp duty on the land, not the build.