By Brett Hayton | Hayton Kosky — Property, Commercial & Estate Planning Lawyers, Bentleigh
Stamp duty, formally known as land transfer duty, represents one of the most significant transaction costs when purchasing property in Victoria. For instance, a property purchased at $800,000 can incur duty exceeding $43,000 at the standard rate. However, a surprisingly large number of property transfers qualify for a full exemption, a reduced concession, or targeted relief under the Duties Act 2000 (Vic). This potential for savings is often overlooked by both clients and some practitioners. This post provides a plain-English overview of the main duty relief options, explains the administration process through the State Revenue Office’s (SRO) system, and introduces a free interactive tool developed by Hayton Kosky to help identify which category applies to your transaction.What Is Land Transfer Duty?
Land transfer duty is a state tax imposed on the transfer of dutiable property in Victoria. It is calculated on the dutiable value—generally the greater of the purchase price or unencumbered market value—using a sliding scale defined in Part 2 of the Duties Act 2000 (Vic). The tax is payable by the transferee (the purchaser or incoming party) and must be assessed before the transfer can be registered at Land Use Victoria.
The Duties Act 2000 (Vic) defines three broad types of duty reduction:
- An exemption means no duty is payable because the transaction is wholly outside the charging provisions.
- A concession means duty is payable, but at a reduced rate or on a reduced dutiable value.
- Relief is a narrower concept, often applying where duty would otherwise be charged twice, or where a statutory mechanism reduces the overall burden.
The Main Categories of Duty Relief: Residential and Personal Transfers
First home buyers are the primary beneficiaries of duty relief. A full exemption applies for first home buyers purchasing a property valued at $600,000 or less. A partial concession is available for properties valued between $600,001 and $750,000. To qualify, the purchaser must be a natural person aged 18 or over, must not have previously owned residential property in Australia, and must move into the property as their principal place of residence (PPR) within 12 months, residing there continuously for at least 12 months.
The principal place of residence (PPR) concession applies similarly to other purchasers. A full concession is available for properties valued up to $550,000, with a partial concession extending up to $600,000. The same PPR occupation requirements apply.
Additional residential concessions include:
- Pensioners and concession cardholders may receive a full exemption for properties valued up to $330,000 and a partial concession up to $750,000, provided the contract was signed on or after 1 July 2023 and they hold an eligible Commonwealth concession card.
- Transfers between spouses and domestic partners of a PPR attract a full exemption under s43, provided the transfer is for no consideration and a PPR requirement is met.
- Transfers arising solely from a relationship breakdown (s44) are fully exempt for all property types, provided the transfer is supported by a financial agreement or court order.
- Deceased estate transfers (s42) to a beneficiary entitled under a will or intestacy are exempt up to the value of the beneficiary’s entitlement.
The off-the-plan concession reduces the dutiable value by deducting construction costs incurred after the contract date. While generally restricted to PPR and first home buyers after 1 July 2023, a temporary strata concession running until October 2026 extends this relief to all purchasers, including investors, of apartments and townhouses in strata subdivisions, with no value threshold.Specialised and Commercial Transfers
The Duties Act provides extensive exemptions for transfers involving trusts and superannuation funds, reflecting the principle of avoiding double duty. These include transfers:
- Trusts: Transfers from fixed trusts (s36), discretionary trusts (s36A), and unit trusts (s36B) to beneficiaries, provided duty was paid on the original acquisition. Transfers solely due to a change of trustee (s33) or to a bare trustee or nominee (s35) are also exempt.
- Superannuation: Transfers between superannuation funds (s40), to a super fund trustee (s41), and from a super fund trustee to a member (s41A) are exempt under specific conditions relating to member interests and consideration.
For corporate entities, the corporate reconstruction concession (s250A) and the corporate consolidation concession (s250B) reduce duty to 10% of the amount otherwise chargeable for transfers between members of the same corporate group (requiring a 90% or greater ownership link). Additionally, the regional commercial, industrial and extractive industries property concession (s64B) offers a 50% duty reduction for purchases of qualifying property in regional Victoria, provided the qualifying use commences within two years. Navigating Duties Online and Using Our Free Qualifier
All Victorian land transfer transactions must be lodged through the SRO’s Duties Online (DoL) portal. During lodgement, the conveyancer or lawyer must complete a digital Transferee Declaration form and select the applicable concession, exemption, or relief from a dropdown list. A key difficulty is that these dropdown categories are expressed in generic administrative language—such as “Trustee of discretionary trust to beneficiary”—rather than referring to the specific sections of the Duties Act, making it challenging to match the right category to complex transactions.
To assist clients and fellow practitioners in navigating this process, Hayton Kosky has developed a free interactive Victorian Stamp Duty Exemption Qualifier. This guided decision-tree tool asks plain-English questions about the nature of the transaction and identifies the correct DoL category, the relevant Duties Act provision, the type of relief, key eligibility conditions, and the necessary evidentiary documents for lodgement. The tool covers major categories across residential, personal, trust, superannuation fund, and corporate/commercial transfers.
Use the Victorian Stamp Duty Exemption Qualifier →
The tool is intended as a general reference guide and does not constitute legal advice. Eligibility for any exemption or concession depends on the specific facts of each transaction, and the SRO retains the right to reassess duty if the conditions of an exemption are not met. When to Seek Specialist Legal Advice
While the qualifier tool is a useful starting point, specialist legal advice is essential for certain complex scenarios before lodging the transfer. These situations include:
- Trust structures, especially where the trust deed is varied, the beneficiary class is complex, or the original acquisition duty payment is unclear.
- Corporate reconstructions, where the 90% ownership threshold is borderline or where the three-year clawback period is a concern.
- Relationship breakdowns, where the financial agreement or consent order does not clearly identify the property being transferred, or documentation is incomplete.
- Off-the-plan purchases, where construction cost apportionment is disputed or PPR/FHB eligibility is uncertain.
- Deceased estates, where a beneficiary purchases another beneficiary’s share or where estate accounts do not clearly establish the entitlement.
In these situations, an incorrect category selection in Duties Online or a failure to provide the required evidentiary documents can lead to reassessment, penalty duty, and interest charges. Contact Hayton Kosky
If you have questions about land transfer duty, or require advice on whether an exemption or concession applies to your transaction, please contact our office.
Hayton Kosky Property, Commercial & Estate Planning Lawyers Level 1, 300 Centre Road, Bentleigh VIC 3204 T: (03) 9557 3355 E: br***@*************om.au W: www.haytonkosky.com.au
This article is intended as general information only and does not constitute legal advice. The law described reflects the position under the Duties Act 2000 (Vic) as at April 2026. Readers should obtain independent legal advice in relation to their specific circumstances