Stamp Duty Discount For Pensioners

If you're retired or close to it, the idea of moving closer to the grandkids, a favourite tram line, or just a smaller home that's easier to look after can feel both exciting and… a bit stressful. The good news, if you're buying in Melbourne or anywhere in Victoria, is that there's a specific stamp duty discount for eligible pensioners that can save you many thousands of dollars.

It applies when you buy a place to live in, not an investment, and it's available only once. As at 8 September 2025, the rule of thumb is simple: a full exemption if the home is valued at $600,000 or less, and a sliding concession from $600,001 to $750,000, provided you meet the criteria.

Below, I'll walk you through who qualifies, how it works in real life around Melbourne's suburbs, where it overlaps with other concessions, and the steps to claim it without hassle.

What the Pensioner Stamp Duty Discount Actually Is

Victoria offers a one off exemption or concession on land transfer duty when an eligible pensioner buys a new or established home to live in as their principal place of residence. If the contract is signed on or after 1 July 2023, the discount works like this:

Exemption: pay no duty if the dutiable value is $600,000 or less
Concession: pay reduced duty on a sliding scale if the value is $600,001 to $750,000

Those thresholds apply to the total value of the home, not just your share if you buy jointly.

The State Revenue Office also summarises the program more broadly as a once only exemption or concession for eligible pensioners buying a home valued up to $750,000 to live in, and points applicants to the official calculator and online application.

Do You Need to Live There?

Yes. You must move in within 12 months of settlement and live there for 12 continuous months. For vacant land where you'll build, you need to live in the finished home for 12 months starting from the earlier of when you can lawfully move in or within 36 months of settlement. If circumstances change, you must tell the SRO.

Can You Use It More Than Once?

No, it's a once only benefit. If you've had the pensioner exemption or concession before, you cannot receive it again.

Who Counts as an Eligible Pensioner?

You need to hold an approved Commonwealth concession card at the date of transfer (settlement). Approved cards include:

Services Australia Pensioner Concession Card
Commonwealth Seniors Health Card
Relevant Department of Veterans' Affairs cards

There are limited exceptions to the 'primary card holder' rule.

The purchase also has to be at market value. Where you're buying from a relative or where there's a nomination, you may be asked for bank statements and a recent valuation or agent appraisal. The relief is designed for genuine purchasers, not gifts or heavily discounted transfers.

Buying with Someone Else

If more than one eligible cardholder buys together, at least one of you must own 25 per cent or more and meet the residence requirement. If you buy with a partner who isn't a cardholder, that's fine, provided the eligible purchaser owns at least 25 per cent and lives in the property as required. The thresholds still apply to the full property value, not just your individual share.

How It Fits with Other Victorian Concessions and Grants

This is where people often get tangled. Here are the key overlaps, in plain English:

First Home Buyer Benefits

If you're also eligible for first home buyer duty relief, you must choose the option that gives you the bigger saving. You cannot stack the first home buyer duty exemption or concession on top of the pensioner reduction for the same purchase. The SRO calculator helps you compare.

Principal Place of Residence (PPR) Concession

This is a separate concession that reduces duty for homes valued up to $550,000 when you'll live there. If you're eligible for the pensioner reduction, any PPR concession you're entitled to is automatically factored in.

Off the Plan Purchases

The pensioner reduction can apply to off the plan homes, but the assessment method shifts. In short, the 'off the plan value' may be used and the PPR off the plan concession only applies where the dutiable value is $550,000 or less. Your vendor provides the construction cost details and chooses the calculation method that sets that off the plan value.

Foreign Purchaser Additional Duty

Special rules can apply if one purchaser is a foreign person. The SRO notes that foreign purchaser additional duty may not apply when a foreign purchaser buys a principal place of residence jointly with their pensioner spouse or partner, but you should check your exact circumstances.

What Does Dutiable Value Mean and How Much Will I Actually Pay?

'Dutiable value' is usually the greater of the price you pay and the property's market value, except where the off the plan concession changes the calculation. That value is fed into Victoria's duty rate tables. For homes valued above $550,000, the general duty rates apply. For example, the general rates include $2,870 plus 6 per cent of the value over $130,000 up to $960,000, then 5.5 per cent up to $2 million, and 6.5 per cent above $2 million.

If your home is $600,000 or less and you qualify, the pensioner exemption makes duty zero. From $600,001 to $750,000, the concession reduces duty on a sliding scale rather than eliminating it. The exact saving depends on the price point and whether any PPR concession applies, which is why the SRO's pensioner calculator is your best friend for precise figures.

Melbourne Property Examples

A quick local sense check: imagine a two bedroom unit in Preston at $595,000. If you qualify, your stamp duty would be nil under the pensioner exemption. Shift to a villa unit in Glen Waverley at $720,000 and you're in concession territory. The standard duty on $720,000 (ignoring any concessions) is roughly $38,270, but the pensioner concession will lower that amount. It's common for the saving to run to many thousands, yet the precise number is best confirmed in the calculator so you're not budgeting off a guess.

Melbourne Scenarios That Come Up Again and Again

Downsizing Within the Same Suburb

Margaret has lived in Blackburn for decades and sells the family home to buy a single level townhouse closer to the 109 tram. The price is $585,000. She holds a Pensioner Concession Card, has never used the pensioner reduction, and will move in straight after settlement. Result: full exemption, no duty payable.

Moving from an Outer Suburb into the Inner North

David and Leila decide to swap a large property in Craigieburn for a smaller Carlton apartment at $680,000. They qualify as cardholders and intend to live there. Result: they receive a concession, cutting the standard duty for that price point. They will still pay some duty, but less than the general rates. They run the SRO pensioner calculator to confirm the exact amount before finalising their transfer papers.

Buying Vacant Land and Building Near Family

A couple purchases a lot in Mernda with plans for a modest single storey home. The land is $410,000 and they'll build within two years. The exemption or concession is assessed on the land value only, not the construction cost, and they must meet the move in requirement once the home is ready.

Off the Plan Apartment Along a Tram Corridor

An eligible cardholder signs for a new apartment in Brunswick. The contract price is $800,000. The developer estimates $300,000 in construction costs, which takes the off the plan value to $500,000 and under the $550,000 threshold for the PPR off the plan concession. Because the reduction is assessed against that off the plan value, they qualify for the exemption. If the construction component were lower and the off the plan value exceeded $550,000, they might miss out entirely.

How to Claim the Pensioner Exemption or Concession

The claim is made through the SRO's Digital Duties Form. In most cases, your conveyancer completes it for you, but you can register and lodge via the public system if you're handling things yourself. You will need:

Your concession card details
Contract and transfer particulars
Proof of market value and payment, especially if related parties are involved
For homes built after transfer, the occupancy certificate and building contract or owner builder cost statement

If you forgot to claim and paid full duty, you can seek a refund for up to five years after payment using the Duties Refund SmartForm.

Pitfalls to Avoid

Missing the 12 Month Residence Requirement

If you don't move in and live there for the required period, the SRO can reassess and remove the reduction. If your situation changes, notify them within 30 days.

Assuming Your Partner's Card Covers You

The general rule is that the primary cardholder is the eligible person. Some Health Care Card codes create exceptions, but don't rely on assumptions.

Buying Under Market Value

Related party sales require evidence of market value and payment. Without that, the reduction can be denied.

Thinking You Can Use It Twice

This is a once only benefit. If you or your partner have already used it, you cannot claim again.

Forgetting the Off the Plan Rules

The threshold for using the off the plan concession within the pensioner reduction context is tied to an off the plan value of $550,000 or less. Your vendor's figures matter.

Where This Sits Alongside Other Victorian Duty Settings

Two other pieces are worth keeping in mind:

PPR concession table: for homes up to $550,000, there's a specific PPR concessional rate that can apply even outside the pensioner rules. Above $550,000, general duty rates apply.

General duty rates: these apply once the property value moves past the PPR concessional band or where you're not entitled to that concession. It's why the pensioner exemption at $600,000 can be a dramatic saving.

Frequently Asked Questions

Can I claim if the home is in my child's name and I move in with them?

No. The benefit is for eligible cardholders who are purchasers. Transfers to relatives at a discount or as gifts do not meet the market value requirement and won't qualify.

What if I'm buying as tenants in common with a non pensioner?

You can still qualify, provided the eligible cardholder owns at least 25 per cent and meets the residence requirement. The thresholds apply to the entire property value.

Does the exemption apply to a holiday flat on the coast?

No. The home must be your principal place of residence.

How do I work out the exact saving?

Use the SRO pensioner calculator. Your conveyancer can also run comparisons against first home buyer duty relief so you choose the better option.

I'm buying off the plan. When is the 'value' measured?

The off the plan rules use a special dutiable value that subtracts construction costs from the contract price. The vendor supplies those figures and chooses the method.

We're considering an apartment in the CBD. Do any special concessions apply there?

There have been time limited CBD concessions in past years, but these are separate from the pensioner reduction and have their own dates and criteria. Always check current SRO pages for Melbourne specific measures before you sign.

A Quick Melbourne Checklist Before You Sign

Reality check the price against local sales in your suburb, whether that's Reservoir, Werribee or Carnegie. If your budget sits right on $600,000, that last bid can be the difference between paying no duty and moving into the concession band.
If you're building, line up your builder's timetable with the 36 month and occupancy certificate milestones so the residence requirement stays on track.
Keep your concession card current through settlement and make sure your name appears correctly.
Ask your conveyancer to run both calculators, pensioner and first home buyer, and show you the comparison in writing.

How Pearson Chambers Conveyancing Helps

Buying later in life is as much about comfort as cost. You want the right street, the right lift access, the right tram stop, and numbers that just make sense. Our Melbourne conveyancers review your contract and Section 32, confirm your eligibility for the pensioner reduction, and complete the Digital Duties Form with the correct evidence attached, so you're not chasing paperwork after settlement. We also keep an eye on residency timeframes and related party valuation requirements, which can save frustration down the track.

Ready to check your eligibility or compare duty options for your next home? Get in touch for a complimentary Section 32 contract review:

Pearson Chambers Conveyancing
Email: contact@pearsonchambers.com.au