Top 10 Ways to Save on Stamp Duty in Richmond VIC

If you're buying in Richmond, stamp duty can add tens of thousands to your upfront costs.

The good news is that several exemptions and concessions exist that could reduce or even eliminate this expense entirely. Whether you're a first home buyer eyeing a Victorian terrace near Bridge Road or an investor looking at an apartment near Richmond Station, understanding which concessions apply to your situation can make a substantial difference to how much deposit you need and what loan amount you're applying for.

First Home Buyer Duty Exemption and Concession

If you're purchasing your first home in Victoria and the property value is under $600,000, you pay no stamp duty at all. For properties valued between $600,000 and $750,000, a tapered concession applies.

Consider a buyer purchasing a two-bedroom apartment in Richmond valued at $580,000. They would qualify for the full exemption, saving around $30,000 in duty. That saving alone could cover the difference between a 10% deposit and a larger one, potentially avoiding Lenders Mortgage Insurance (LMI) or reducing the overall loan amount. The property must be your principal place of residence, and you need to move in within 12 months of settlement and live there for at least 12 continuous months. These conditions are strictly enforced, so if your circumstances might change shortly after purchase, factor that into your planning.

For those looking at properties closer to the $750,000 mark, the concession tapers off. At $700,000, you'd pay around $13,000 rather than the full $38,000. When we structure your home loan, knowing the exact duty payable helps us calculate precisely what funds you need at settlement and whether splitting your loan or accessing an offset account makes sense for your deposit strategy.

Off-the-Plan Concession for New Apartments

Buying an off-the-plan property can unlock a 50% stamp duty concession, regardless of whether you're a first home buyer.

This concession applies to contracts signed for new or substantially renovated residential properties where construction hasn't been completed. In Richmond, where several apartment developments are underway near the Cremorne precinct and along Swan Street, this concession is particularly relevant. The property value must be under $550,000, and you must occupy it as your principal place of residence within 12 months of completion.

In a scenario like this, a buyer signing a contract for a $520,000 one-bedroom apartment off-the-plan would pay around $13,500 in duty instead of $27,000. That's a saving of $13,500, which could be redirected toward furniture, renovations, or reducing the loan amount. If you're also a first home buyer and the property is under $600,000, you'd compare the off-the-plan concession with the first home buyer exemption and take whichever delivers the larger saving. In this case, the first home buyer exemption would be more valuable.

Pensioner Duty Exemption

Pensioners purchasing a principal place of residence valued under $330,000 can access a full stamp duty exemption. For properties between $330,000 and $750,000, a concession applies.

This exemption is available to age pensioners, disability support pensioners, and some veterans. Given Richmond's property values, finding something under $330,000 is uncommon, but the concession still reduces costs significantly for properties in the mid-range. At $500,000, a pensioner would pay around $8,000 instead of $25,000. When applying for an owner occupied home loan in this situation, lenders assess pension income differently than employment income, so working with a broker who understands how to present pension income and demonstrate borrowing capacity is important.

Principal Place of Residence Concession

All owner-occupiers in Victoria receive a concession compared to investors. The standard duty rate for owner-occupied properties is lower than the rate applied to investment properties, which includes an additional surcharge.

If you're buying a home in Richmond to live in, you'll pay the standard rate. If you're purchasing as an investment, you'll pay the standard rate plus an additional 8% absentee surcharge if you're a foreign purchaser, or just the standard rate if you're an Australian citizen or permanent resident buying as an investment without the principal place of residence concession. The difference between owner-occupied duty and investor duty on a $700,000 property can be several thousand dollars, so your intention at the time of purchase matters. If you're uncertain whether to occupy or rent the property initially, that decision should be made before contracts are signed, as it directly affects your duty calculation and loan structure. For investment purchases, you'll want to explore investment loans rather than owner-occupied products, as rates and features differ.

Transfer Between Spouses or De Facto Partners

If you're transferring property ownership between spouses or de facto partners, a full stamp duty exemption generally applies.

This is common during relationship property settlements, refinancing to remove one partner from the title, or adding a partner to an existing property. In Richmond, where many properties are held jointly and circumstances change over time, this exemption can save tens of thousands when restructuring ownership. The exemption doesn't apply if there's a mortgage being taken out that exceeds the existing debt, so if you're refinancing and increasing your loan at the same time as transferring ownership, duty may be payable on the difference. When we arrange refinancing in these situations, we structure the loan to minimise any additional duty where possible.

Seniors and Pensioners Downsizing

Victoria offers a stamp duty exemption for seniors and pensioners who are downsizing to a lower-value home. The property you're purchasing must be valued at $330,000 or less for a full exemption, or between $330,000 and $750,000 for a concession.

You need to be over 60 or a pensioner, and you must be selling a home you've lived in for at least five of the previous ten years. Given Richmond's prices, most downsizers would fall into the concession range rather than the full exemption. At $600,000, a downsizer would pay around $15,000 instead of $32,000. This can make a meaningful difference when moving from a larger family home in Richmond's leafy residential streets to a more manageable apartment closer to amenities along Victoria Street or Burnley.

Primary Production Land Exemption

If you're purchasing land in Victoria for primary production purposes, a full stamp duty exemption applies.

This isn't relevant for most Richmond buyers, given the suburb's inner-city location and residential character, but it's worth noting for anyone purchasing rural or semi-rural land elsewhere in the state while also holding a Richmond property. The land must be used solely for primary production, such as farming or grazing, and the exemption applies only to the land component, not associated dwellings.

Off-the-Plan Principal Place of Residence Concession

If you're buying off-the-plan and intending to occupy the property as your home, you may be eligible for a concession even if you don't qualify as a first home buyer.

The property must be newly built or substantially renovated, valued under $550,000, and you must move in within 12 months of completion and live there for 12 continuous months. In Richmond, where off-the-plan developments are appearing in pockets near Church Street and the inner residential streets, this can apply to buyers upgrading from a previous home or moving from interstate. The concession is a flat 50% reduction in duty, which at $540,000 would save around $13,500. When structuring your home loan application, we account for this saving in your upfront costs and adjust deposit requirements accordingly.

Shared Equity Scheme Exemption

The Victorian government's shared equity scheme offers first home buyers a stamp duty exemption on properties up to $950,000.

Under this scheme, the government contributes up to 25% of the purchase price, and you contribute a minimum 5% deposit. You pay no stamp duty on the government's share of the property, which can save tens of thousands. In Richmond, where median unit prices sit well within the $950,000 cap, this scheme is accessible to eligible buyers. You need to earn under the income cap, which is $125,000 for singles or $200,000 for couples, and the property must be your principal place of residence. The government's share is not a loan, so you don't make repayments on it, but when you sell or refinance, the government receives the same percentage of the property's value at that time. If property values increase, the government's share increases too. When we structure loans under this scheme, we factor in your future plans for refinancing or selling, as those events trigger a repayment to the government based on the property's current value.

How Duty Exemptions Affect Your Loan Structure

Knowing which exemptions or concessions you qualify for changes how we structure your finance. A $30,000 saving on stamp duty might mean you can put down a larger deposit, avoid LMI, or access a lower interest rate by improving your loan to value ratio (LVR).

In our experience, buyers often underestimate how much duty adds to their upfront costs and overestimate how much deposit they need. If you're eligible for an exemption, that capital can be redirected into your deposit, held in an offset account to reduce interest, or kept aside for renovation or furnishing. The exemption also affects your borrowing capacity, as lenders assess your savings and cash position at settlement. If you're applying for home loan pre-approval, we include the duty exemption in the calculation so your pre-approval reflects the actual amount you'll need to borrow.

Call one of our team or book an appointment at a time that works for you. We'll review which exemptions or concessions apply to your situation, calculate your exact duty payable, and structure your loan to make the most of any savings available.

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