Victorian home buyers to pay off stamp duty in just 30 days from April

Victorian property buyers will have just 30 days to pay stamp duty from April next year as the state government slashes the payment deadline, which is traditionally 90 days from the date of transaction.

The Duties Act 2000 (Vic) amendment comes into effect on April 1 next year.

“Purchasers of property will now need to take account of the implications of the new stamping requirements when considering their finance requests,” says TressCox lawyer Dan Flynn.

“The reduced time for payment means that it will no longer be possible to hold funds for up to three months, allowing investment of funds, or use of it for other purposes, during the period before payment is made.”

Flynn recommends parties involved in dutiable transactions adopt practices that enable them to comply with the reduced time period to avoid penalties.

The act also ensures the same level of stamp duty benefits for concession card holders and pensioners are available to purchasers of existing homes, off-the-plan purchasers and owner-builders.

The base point for calculating the concession for off-the-plan sales to pensioners and concession card holders is now defined as the aggregate of the value of the land and the cost of construction, rather than the dutiable value of the property.