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You have a settlement date booked, removalists on standby, and a key handover pencilled in around lunch. The big question buzzing in the background is simple enough: are funds actually available on settlement date? If you are selling, do the proceeds hit your account that day. If you are buying, are your funds 'cleared' in time to complete.
Let's unpack what happens in Melbourne under Victoria's electronic conveyancing regime, so you can plan with confidence and avoid last-minute hiccups.
What is 'Settlement Day' in Victoria?
In Victoria, 'settlement' is the official process where money changes hands, the transfer is lodged, and you become the registered owner. The contract of sale usually sets a settlement period of 30 to 90 days, though the exact timing is negotiated. On the day, the buyer pays the balance, the title moves, and keys are released unless otherwise agreed.
Most Victorian transactions now occur electronically. The regulator is clear that conveyancing must be conducted online, with only minor exceptions. That means your lawyer or conveyancer will settle through a digital workspace rather than face-to-face with paper cheques.
How Money Actually Moves During Settlement
Here is the money flow, stripped of jargon:
Inside the PEXA workspace: Your representatives and any banks enter payout figures, rates and water adjustments, stamp duty amounts, and destination accounts in a 'Financial Settlement Schedule'. When everyone has signed and the workspace is 'Ready', settlement is booked into an available time slot that day.
Across the banking system: When settlement fires, funds between banks are settled in the Reserve Bank's high-value system called RITS, on a real-time gross settlement basis. In simple terms, the transfer between financial institutions is final and irrevocable.
Into your account: Once the interbank leg is done, your own bank posts the credit to the nominated account. Posting times vary by bank, time of day, and account type, which is why two sellers can have slightly different experiences on the same afternoon.
If duty is payable, the State Revenue Office stamping is handled digitally alongside settlement through Duties Online, which is integrated with the electronic lodgement network.
Sellers: Will I See the Money That Day?
In electronic settlements, vendors often see proceeds the same day. PEXA notes that cleared funds can appear 'within minutes' though, depending on your receiving bank, it can take longer than 24 hours to show in online banking. In practice across Melbourne, we commonly see two to four hours for the major banks, while some regional banks and credit unions can post later in the evening or next business day. Plan for same-day, but budget for a modest buffer.
Why the variation? The Reserve Bank piece is instantaneous once the workspace runs through RITS; what varies is your bank's posting cycle. Banks may batch external credits, especially if the settlement completes late in the afternoon. Public holidays and weekends also affect when you can see the credit, even though the interbank leg is already final.
If your transaction were a traditional paper settlement using a bank cheque, you would expect a longer wait for clearance. Industry guidance has long suggested around three business days for cheques, which is one reason Victoria prioritised e-conveyancing.
Buyers: Are My Funds 'Available' to Complete?
For buyers, the question flips: are your funds available to pay on the day. Short answer, they must be cleared before settlement. If your practitioner provides money from a trust account, those funds must be cleared and ready in that trust by the date and time of settlement. If you are depositing into the PEXA Source Account rather than your practitioner's trust, allow a safety margin so the money is visible and verified in advance. Professional guidance recommends having cleared funds in the Source Account several days before the scheduled date.
Your lender's funds are managed inside the workspace, but the lender still needs time to finalise drawdown figures and sign off. Following the best-practice guidelines and giving banks adequate lead time reduces the risk of a late rollover.
A Quick Melbourne Reality Check
Electronic settlement is wonderfully reliable, yet every complex system has the odd wobbly day. Over the past year there have been reported platform or participant outages that delayed some settlements nationally. These incidents are investigated and, in most cases, are outside the core platform. They are uncommon, but the lesson for you is simple: book removalists with a modest buffer if you can.
Keys, Timing Windows, and What 'Same Day' Means in Practice
PEXA runs settlement time slots across the business day. Everyone needs to accept the date and time in the workspace, and the booking can be adjusted if a bank or party needs extra time. If you settle late in the afternoon, your bank may post the credit after hours or the next morning even though ownership has already transferred.
The Reserve Bank's systems that support retail instant payments run 24/7, yet high-value settlement for property is aligned to business days, and public holidays in Victoria and New South Wales can affect timing. That is another reason why a 11 am or midday slot is often preferred in Melbourne.
Consumer Affairs Victoria confirms what this feels like on the ground: settlement is the moment you pay the balance, title moves, and you take possession. Keys are then released, usually that day, once settlement is complete.
Early Deposit Release: Can a Seller Get That Money Before Settlement?
In Victoria, deposits are held in trust until settlement. A seller can ask for an early release under 'Section 27' of the Sale of Land Act, but there are conditions and timeframes, and the buyer does not have to agree. There is a strict minimum: a Section 27 release cannot happen until at least 28 days after the contract was signed. Many requests are refused for sensible reasons, such as a high payout on the seller's mortgage. So, while early release exists, you should not rely on it to fund your next purchase without back-up finance.
Several Victorian firms explain the process and common objections well. The headline points are that Section 27 is a statutory privilege rather than a right, the buyer can object on various grounds, and even small documentation gaps can stall the timeline. If early access matters to you, start the process early and prepare to show clear, accurate mortgage information.
Where Stamp Duty Fits In
Your practitioner lodges the duty assessment through Duties Online prior to settlement and arranges payment at settlement where required. Because this is integrated in the electronic lodgement network, you should not be juggling paper duty cheques on the day. This digital workflow is now standard practice across Victoria.
Common Settlement Scenarios in Melbourne
Here are real-world patterns from day-to-day files across the suburbs and the CBD:
Same bank on both sides: If your buyer's lender and your receiving bank are the same institution, vendors often see money within a couple of hours once the workspace ticks over. Handy when you are moving from a townhouse in Brunswick to a detached home in Bentleigh the same afternoon.
Different major banks, morning slot: A mid-morning settlement usually means posting later the same day. Vendors are typically comfortable arranging key pickup late afternoon or early evening.
Late afternoon slot with a regional bank: Ownership transfers fine, and you can drop the keys at the agent, but the visible credit can land overnight. Plan your removalist or bond payments with that in mind.
Linked settlements: If you are selling and buying the same day, your purchase might be set to trigger only after your sale funds land. If one workspace rolls over because a party has not signed, the chain pauses. Book earlier slots and keep communication tight.
Public holiday Fridays: Settle on the Friday before a long weekend and some banks will not display the vendor credit until the next business day, even though the interbank step completed on Friday. This catches people who plan a furniture delivery on Saturday morning in South Yarra.
Seller's Checklist: How to Maximise Your Chances of Same-Day Access
- Provide a standard everyday account for the proceeds rather than an offset or redraw account, as some banks post external credits to ordinary accounts faster
- Aim for a morning settlement window to give banks more posting cycles before close of business
- Triple-check destination details early in the week of settlement. Your practitioner will enter these in the Financial Settlement Schedule
- Keep Section 27 expectations realistic. Treat early deposit release as a bonus, not a plan, unless you have bridging finance in place
Buyer's Checklist: Make Sure Your Money is Ready on the Day
- Deposit shortfall early. If you are using the PEXA Source Account, transfer with enough margin so funds are cleared and verified before the date. Practitioners are told to have cleared funds in place, and professional guidance recommends allowing several days
- Respond to your bank promptly. Lenders need time to sign off final figures. Following the PEXA transfer guidelines helps avoid a rollover
- Know what 'settled' means for keys and insurance. Settlement is when the balance is paid and you take possession. Confirm your insurance start time from settlement day
Paper Settlements and Bank Cheques (Just in Case)
Although Victoria is electronic by default, edge cases still exist. If your deal must complete with bank cheques, build in clearance time after the day. This is slower, can be stressful, and is precisely why the market moved to e-conveyancing. When in doubt, ask your practitioner whether a digital workspace is possible.
Quick Answers to Common Settlement Questions
Are funds available on settlement date? Usually, yes. In e-settlements vendors commonly see funds the same day, sometimes within minutes, sometimes later that evening or next business day depending on the receiving bank's posting cycle. Buyers' funds must be cleared in advance to allow settlement to run.
Is the money mine even if I cannot see it online yet? Yes. Once the interbank leg is completed in RITS, the transfer is final between institutions. The visible credit in your mobile banking may trail by a posting cycle.
Do public holidays affect it? They can. While instant retail payments run 24/7, high-value settlement that supports property runs on business days, and public holidays in Victoria and New South Wales affect timing.
Can I rely on Section 27 to fund my next purchase? It can help, but it is not guaranteed and cannot occur until at least 28 days after contract. Consider bridging options if timing is tight.
A Melbourne-Flavoured Example
Say you are selling a unit in Camberwell at 11 am and buying a townhouse in Carnegie it will need to settle at the same time. Your sale workspace runs first. Your bank receives the incoming funds via RITS and goes to payments for the other workspace. Your practitioner then triggers the purchase workspace with your lender's contribution and your sale surplus. You collect keys just after school pick-up, and you are on a tram back to the CBD by 4 pm. That is a good day.
If the sale had slipped into a 4.30 pm slot on the eve of a public holiday, you might not see the credit until after hours or on Tuesday, even though the sale legally settled. You would still complete your purchase if your practitioner structured the pair of workspaces correctly, but your visible online balance would lag by a posting cycle.
Final Tips From the Coalface
- Communicate early and often. Most rollovers stem from missing signatures or last-minute payout updates from a bank. A quick phone call on the morning of settlement saves an afternoon of worry
- Be choosy with the destination account. Give your practitioner an everyday account at a major bank if same-day visibility matters. Some savings or offset accounts display external credits later
- Treat 'same day' as 'same day, with a sensible buffer'. Plan your cleaners, removalists, and key handovers accordingly, especially before long weekends
Conclusion: Yes, Funds Are Generally Available on Settlement Day
In Victoria's electronic system, most sellers see cleared funds on the day, and buyers complete without chasing paper cheques. The exact minute your balance appears depends on bank posting cycles and time of day, but the interbank transfer is final at settlement. If you set your workspace up early, pick a morning window, and keep everyone signing on time, settlement day in Melbourne is far more 'cosy cuppa' than 'frantic dash'.
If you would like tailored advice for your property, we are here to help.