In Victoria, what is the name of the tax payable by a purchaser on the transfer of real property?

Q: What is the correct answer to: In Victoria, what is the name of the tax payable by a purchaser on the transfer of real property?

The correct answer is Land transfer duty. In Victoria, the tax payable on property transfers is officially called 'land transfer duty,' not 'stamp duty.' It is administered by the State Revenue Office under the Duties Act 2000 and calculated on a sliding scale based on the dutiable value of the property. The purchaser is responsible for payment.

Q: What background knowledge is needed for this Finance Taxation question?

Victoria renamed 'stamp duty' to 'land transfer duty' to more accurately describe the tax. It is calculated on the property's dutiable value using a sliding scale with rates increasing for higher-value properties. Concessions exist for first-home buyers, pensioners, and certain transactions. The SRO administers collection and compliance.

Q: What is a good way to remember the answer to this Finance Taxation question?

VIC calls it LAND TRANSFER DUTY, not stamp duty. The land TRANSFERS, so you pay LAND TRANSFER duty. Official name matters. When asked about Victorian property transfer tax, always use the official term 'land transfer duty.'

Q: What exam tip applies to this Finance Taxation question?

The official VIC term is 'land transfer duty'—'stamp duty' is the common name but not the correct exam answer.

Q: How does this Finance Taxation concept apply in Australian real estate practice?

A buyer's conveyancer calculates land transfer duty on a $750,000 Richmond apartment at approximately $40,000. The amount is paid to the State Revenue Office before settlement. The conveyancer uses the official term 'land transfer duty' on all documentation rather than the colloquial 'stamp duty.'

Question

Finance TaxationVICEASY

In Victoria, what is the name of the tax payable by a purchaser on the transfer of real property?

Answer Options

A

Stamp duty

B

Land transfer duty

C

Property acquisition tax

D

Capital gains levy