How you could save up to 50% on stamp duty

Find out what the Victorian State Government's new stamp duty waiver could mean for you - 

  • What it encompasses
  • When you can take advantage of it
  • Eligibility
  • Savings to be made

What the Victorian state government’s new stamp duty waiver could mean for you.

If you’re planning on buying a home or investment property in the next 6 months you could take advantage of the state government’s stamp duty waiver, with significant savings to be made.

Introduced as part of the November 2020 budget to encourage Victorian’s back into the property market after the effects that the Covid-19 restrictions had on the economy. 

Eligibility

The waiver is available for residential properties purchased for less than $1 million in Victoria between 25 November 2020 and 30 June 2021. Settlement does not have to take place within this period but the contract must be signed. 

Depending on the type of property you buy, savings of up to 50% on stamp duty can be made. New properties will receive a 50% waiver whilst existing properties and vacant land will receive a 25% waiver. 

What’s more, you don’t have to live in the property to receive the waiver however it must be a residential property. 

Calculate the savings

So, what are the savings to be made with the new stamp duty waiver? 

If you’re buying a house worth $700,000 you would normally be paying $37,070 on stamp duty. With the waiver you’ll save $18,535 on a new house and $9267 on an existing home.

For eligible first home buyers, the stamp duty waiver can be added onto the First Home Buyer Duty Concession resulting in even further savings. That could mean a first home buyer would only pay $12,356 in stamp duty on a $700,000 home. That’s an overall saving of $24,714. Of course, if you’re a first home buyer and purchasing a property under $600,000 you are exempt from paying stamp duty altogether.* 

So what should you do next?

Do your research and work out what the savings could mean for you. Visit the Victorian state government website to find out more. 

Or, just let us do the hard work for you. Speak to one of BankVic’s bankers (over the phone, in branch, or at your home or workplace) and they’ll help you every step of the way. Call us on 13 63 73 or visit bankvic.com.au. 

* https://www.sro.vic.gov.au/victorian-budget-2020-21-announcements. This article was published on 15 December 2020 and the information was current at that time. Normal lending criteria applies to all loan applications. The information in this article is general in nature and does not take into account your personal situation or needs. Please consider whether it is appropriate for you before acting on this information.