Victoria (Melbourne) stamp duty & foreign buyer surcharge 2026-27
Victoria charges foreign buyers an 8% foreign purchaser additional duty on top of land transfer duty. Owner-occupied and investment purchases use different brackets, and anything above $2 million is charged at a flat rate.
- Foreign buyer surcharge
- 8%
- Foreign owner land tax (yr)
- 4%
- First home threshold
- $600,000
- Rate above $2m
- 6.5%
VIC transfer duty brackets
Dutiable value is the higher of contract price and market value
| Dutiable value | Transfer duty |
|---|---|
| $0 – $25,000 | 1.4% of the price |
| $25,001 – $130,000 | $350 + 2.4% of the amount over $25,000 |
| $130,001 – $960,000 | $2,870 + 6% of the amount over $130,000 |
| $960,001 – $2,000,000 | 5.5% of the price |
| Above $2,000,001 | $110,000 + 6.5% of the amount over $2,000,000 |
The table above shows the non-PPR brackets. Owner-occupied property under $550,000 uses a lower scale; above $960,000 duty is charged at a flat rate on the whole value, and the portion above $2 million is charged at 6.5%. The 8% foreign buyer surcharge is charged separately on the full value.
Worked example: a Melbourne $850,000 new build, overseas buyer
Non-resident individual, investment use, with a mortgage, FIRB new-dwelling tier
| Transfer dutyVIC 分档计算 | $46,070 |
|---|---|
| Foreign buyer surcharge 8%$850,000 × 8% | $68,000 |
| FIRB application fee (est.)New / vacant land tier, FY 2026-27 | $15,600 |
| Transfer registration (approx.)Land titles office | $2,094 |
| Mortgage registration (approx.)Land titles office | $129 |
| Government cost at settlement | $131,893 |
The same property bought by an Australian citizen or permanent resident (as an investment) would cost about $48,293 in government charges — a difference of $83,600 entirely from the surcharge and the FIRB application fee.
Recent VIC changes
- 1 January 2024The absentee owner land tax surcharge rose from 2% to 4%.
- October 2025The commercial and industrial property duty reform continued to roll out; residential property is unaffected.
- 1 July 2025The temporary off-the-plan apartment duty concession was extended, with duty assessed on the value completed at contract date.
- 1 July 2026First home buyer thresholds held at full exemption to $600,000 and a partial concession under $750,000.
Common questions
What is the Victorian foreign buyer surcharge?
Foreign purchaser additional duty is 8% of the dutiable value, lodged and paid alongside standard land transfer duty. On $850,000 the surcharge is $68,000.
Is duty the same for owner-occupiers and investors?
No. Owner-occupied property under $550,000 uses a more favourable scale; above that the gap narrows. The table on this page shows the non-PPR brackets — the calculator switches automatically based on the use you select.
Do New Zealand citizens pay the Victorian surcharge?
SCV holders ordinarily resident in Australia are taxed as locals — no surcharge and no FIRB. New Zealand citizens living overseas are treated as foreign persons and pay the 8% surcharge.
Does buying off the plan reduce duty?
It can. Victoria assesses off-the-plan purchases on the construction completed at contract date, so signing earlier means a lower dutiable value. The foreign buyer surcharge is still charged on the full contract price.
How is the Victorian absentee owner surcharge calculated?
The absentee owner surcharge is 4% of the taxable land value each year, on top of general land tax, and the Commonwealth vacancy fee may also apply.
Other states & territories
Official sources
- SRO Victoria — Land transfer duty
- SRO Victoria — Foreign purchaser additional duty
- SRO Victoria — Absentee owner surcharge
- ATO — FIRB residential fees
General information only — not tax, legal or financial advice. Rates, concessions and FIRB fees change often, and whether you are a "foreign person" turns on the Victoria rules applied case by case. Confirm with the revenue office and your adviser before signing. Last checked: 2026-09-12