Understanding Stamp Duty: What It Means for Your House and Land Package

When you're planning to buy your first home or invest in property, there's one cost that can take many buyers by surprise — stamp duty. Often overlooked in the early stages of budgeting, stamp duty can significantly impact the total cost of your purchase. However, for those purchasing House and Land Packages, there are unique benefits and potential savings that make this property type even more appealing.

In this blog, we break down what stamp duty is, how it's calculated, and how it applies to House and Land Packages.

What Is Stamp Duty?

Stamp duty (officially known as land transfer duty in Victoria) is a government tax charged on property transactions. It's payable by the buyer and is calculated based on the property's value — or in some cases, the land component alone.

The amount of stamp duty you’ll need to pay depends on several factors, including:

• The purchase price of the property or land
• Whether you’re a first-home buyer
• The location of the property
• Whether you're buying as an individual, company, or trust

How Stamp Duty Applies to House and Land Packages

One of the major advantages of House and Land Packages is how stamp duty is calculated. Unlike established homes — where the duty is applied to the total property value — house and land purchases are typically split into two contracts:

1. One for the land
2. One for the construction of the home

Because of this dual-contract arrangement, stamp duty is usually only payable on the land component, not the combined cost of the land and the house build. This can save buyers tens of thousands of dollars, especially when compared to buying an established home of similar value.

Example: Stamp Duty Savings

Let’s say you're purchasing:

• Land valued at $350,000
• Building contract worth $400,000

For a total package worth $750,000, you would only pay stamp duty on the $350,000 land value, not the full $750,000 amount — representing a significant cost reduction.

You can use the State Revenue Office Victoria stamp duty calculator to estimate your specific liability.

Are You Eligible for Stamp Duty Concessions?

In Victoria, if you’re a first-home buyer, you may be eligible for:

• Full stamp duty exemption on homes valued up to $600,000
• Concessional rates for homes valued between $600,001 and $750,000

These savings apply whether you’re purchasing an established home or a new House and Land Package — making it an ideal path to homeownership for first-time buyers.

Other Key Points to Consider

• Payment Timing: Stamp duty is usually due within 30 days of settlement. If you’re buying land first and building later, the duty is paid when the land contract settles.
• Financing Stamp Duty: Some lenders may allow stamp duty to be included in your loan amount, but this can increase interest over time.
• Additional Costs: Always factor stamp duty into your total budget alongside conveyancing fees, loan costs, and inspections.

Why This Matters for House and Land Buyers

For many buyers, House and Land Packages offer a clear financial advantage. Beyond the ability to customise your new home and enjoy lower maintenance costs, the stamp duty savings alone can make this option more affordable and accessible — particularly in rising markets.

In master-planned communities like Perch Clyde North, where land prices are competitive and development continues to grow, buyers can benefit from both stamp duty concessions and future capital growth.

Final Thoughts

Stamp duty can feel like just another tax — but understanding how it works, and how House and Land Packages can reduce its impact, could save you thousands. Whether you’re a first-home buyer or a savvy investor, knowing how to structure your purchase can make a meaningful difference.

Looking to take advantage of stamp duty savings and secure your place in a thriving community? Explore House and Land Packages at Perch Clyde North and find a home that works for your lifestyle and budget.