What are transfer duty and title registry fees?

Buying in Melbourne already feels expensive. Then your lender or conveyancer mentions transfer duty, title registration fees, PEXA fees and a few other acronyms, and it can start to feel like money is leaking from every line of the statement.

The good news is that once you break these charges down, they're not mysterious at all. They're just different kinds of government costs that sit around the contract price.

In Victoria, two of the big ones are:

Transfer duty (usually called land transfer duty or stamp duty here), and
Title registry fees (the charges to register your ownership and usually your bank's mortgage).

Let's unpack what each one is, when you pay them, and how they fit into a typical Melbourne settlement.

The Two Key Government Charges When You Buy in Victoria

When you buy a house, unit or townhouse in Melbourne, you're usually paying three broad categories of money:

1. The price you agreed with the seller

2. Government charges, including:

Land transfer duty (stamp duty)
Title registration fees and associated charges (for your transfer and mortgage)

3. Professional and transaction costs, such as:

Conveyancer or solicitor fees
Building and pest inspections
Bank fees and lender's mortgage insurance (if it applies)
Settlement platform fees such as PEXA

Transfer duty and title registry fees both go to government, but they are quite different:

Transfer duty is a tax on the transaction itself
Title registration fees are administrative charges for updating the official land register and recording interests such as your mortgage

Understanding that difference helps you see what can change and what can't, and where a good conveyancer can save you money or stress.

What is Transfer Duty (Stamp Duty) in Victoria?

In Victoria, transfer duty is officially called land transfer duty. It is a state tax payable when property is bought or otherwise acquired. It applies to most residential purchases, whether you are buying a freestanding home in Preston, a townhouse in Brunswick, or an apartment in the CBD.

Key Points About Transfer Duty

A few key points:

It usually applies when a property changes hands for money, but it can also apply to some gifts, related party transfers and transfers under a trust
The duty is paid to the State Revenue Office (SRO), not to your conveyancer or the titles office
In almost all standard sales, the buyer is responsible for the duty, not the seller
Your conveyancer calculates the duty, claims any concessions you qualify for, and arranges payment through the SRO's online system as part of the settlement process

How is Transfer Duty Calculated?

Land transfer duty in Victoria is based on the dutiable value of the property. That is usually the price you pay, unless the property's market value is higher, in which case the SRO can use that instead.

The duty is charged on a sliding scale. For standard residential purchases that are not covered by a special concession, the rates currently step up with the value of the property. For example:

At the lower end of the scale, duty starts at 1.4% of the dutiable value
For most homes in Melbourne's middle-ring suburbs, the rate that matters is 6% of the amount over $130,000 plus a base amount, which applies up to $960,000
Above $960,000 and up to $2 million, the duty is 5.5% of the dutiable value
Very high value properties can attract a top rate of 6.5% over $2 million

In practice, your conveyancer or lender will run this through the Land Transfer Duty Calculator on the SRO website, so you don't have to do the maths yourself.

A Quick Melbourne Example

Imagine you buy a two-bedroom unit in Coburg for $700,000 as an investment property:

The dutiable value is $700,000
No concessions apply, because it is not your home and you are not a first-home buyer for duty purposes
The SRO calculator applies the relevant band and works out the duty, which comes out to tens of thousands of dollars on top of your deposit

Now compare that with a first-home buyer couple purchasing the same unit to live in. Their duty could be heavily reduced or even removed, thanks to specific Victorian concessions.

Concessions, Exemptions and Extra Surcharges

The raw duty rates are only part of the picture. What you actually pay can be higher or lower depending on your situation.

First-Home Buyer Duty Exemption and Concession

In Victoria, eligible first-home buyers can receive very generous duty relief:

If your home's dutiable value is up to $600,000, you may pay no land transfer duty at all
If it is between $600,001 and $750,000, you may receive a discounted duty bill on a sliding scale

This applies to new or established homes and, in many cases, to vacant land where you intend to build your first home. There are rules around citizenship or residency, and you must live in the property for a set period, so it is worth checking this with your conveyancer early.

Principal Place of Residence Concession

Even if you are not a first-home buyer, you may still receive a duty concession when you are buying a home to live in:

A principal place of residence (PPR) concession can apply to properties valued up to a set threshold (for example, up to $550,000 in some cases).

Again, there are conditions about moving in and living there for a minimum period. Your conveyancer will usually ask you to complete a declaration confirming that you intend to live in the property.

Off the Plan Concessions and Special Inner-City Relief

If you are buying off the plan in Melbourne, there may be specific duty concessions linked to:

Buying a new apartment or townhouse off the plan
Certain properties in the City of Melbourne or capital city zone with capped dutiable values

These rules can change and sometimes run as temporary government policy to encourage development and apartment sales, so current advice matters.

Foreign Purchaser Additional Duty

On the other side of the ledger, some buyers pay extra duty.

If you are classed as a foreign purchaser of residential property in Victoria, an additional duty currently applies at a rate of 8% of the dutiable value, on top of normal land transfer duty.

This can push the total duty bill into double digits as a percentage of the purchase price. The definition of 'foreign purchaser' is quite broad and can catch some family trusts and mixed citizenship couples, so care is needed here.

What are Title Registry Fees?

Now to the second main category: title registry fees.

In Victoria, the land titles system is managed by Land Use Victoria. Whenever:

a property changes hands, or
a bank takes or releases a mortgage over the property,

documents are lodged so that the Victorian Register of land can be updated. Land Use Victoria charges lodgement and registration fees for that work.

These are sometimes called:

'title registration fees',
'Land Registry fees', or
'titles office fees'.

They are separate from transfer duty and are not a tax in the same sense. They are fixed charges set each year under the Monetary Units Act, and they change on 1 July each financial year.

What Do Title Registry Fees Cover?

For a typical purchase in Melbourne, you will usually see:

A registration fee for the transfer of land into your name
A registration fee for your mortgage, paid when your lender registers its interest
If the seller has a mortgage to be removed, there will be a registration fee for the discharge of mortgage as well. That cost is often borne by the seller but will appear in the final settlement adjustments

Most settlements are now handled electronically through platforms such as PEXA. In addition to Land Use Victoria's fees, there will usually be a PEXA fee for the digital workspace.

How Much are Title Registration Fees?

The exact figures depend on:

The type of dealing (transfer, mortgage, discharge, etc.)
Whether the document is lodged electronically or in paper form
The consideration, or contract price, for the transfer

Land Use Victoria publishes fee schedules and a Transfer of land fees calculator, which lets your conveyancer plug in the property price and other details to calculate the current year's charges.

For a standard Melbourne home purchase, buyers usually see several hundred dollars in total registry and electronic settlement fees. It is enough to plan for, but it is usually quite small compared with transfer duty.

How Transfer Duty and Registry Fees Show Up at Settlement

To see how these costs fit together, imagine three real-world style scenarios.

1. First-Home Buyer in the Inner North

Amelia is buying her first home, a $640,000 apartment in Thornbury to live in.

Because she is an eligible first-home buyer, the first-home duty concession applies to the dutiable value between $600,001 and $750,000. Her duty bill is cut back significantly compared with a non-first-home buyer.

She still needs to pay:

Title registration fees for the transfer into her name
A registration fee for her bank's mortgage
PEXA's fee for the electronic settlement

Her conveyancer builds all of this into the settlement statement, so the amount the bank advances and the amount she needs to contribute on the day include duty, registry and PEXA fees.

2. Investor Buying a Townhouse in Preston

A couple already owns their home in Reservoir and buys a $1.1 million townhouse in Preston as an investment.

Because the property is an investment, no PPR or first-home concessions apply.

Duty is assessed at the higher end of the scale, based on the full $1.1 million dutiable value.

They still pay the same sorts of title registration and PEXA fees as Amelia, but those are tiny compared with the duty.

Here, transfer duty is the real budget driver. It might influence whether they stretch to a slightly cheaper property to keep the duty down.

3. Foreign Purchaser Buying in the CBD

A foreign buyer acquires a $900,000 apartment in the Melbourne CBD as an investment.

They pay standard land transfer duty based on the dutiable value.

On top of that, an additional 8% foreign purchaser duty is charged on the residential property.

Title registration and PEXA fees are similar to other buyers at that price point.

Here, the extra surcharge radically changes the numbers. Getting accurate advice early would be essential.

Budgeting for Duty and Title Fees Without Surprises

These costs do not need to be scary, but they do need to be planned.

A few practical tips:

Ask for an Estimate Before You Sign

When you are seriously considering a property, ask your conveyancer to run the numbers for duty, registration and settlement platform fees based on the advertised price range. Do this before you bid at auction or make an unconditional offer.

Use the Official Calculators, Not Guesswork

The State Revenue Office's land transfer duty calculator and Land Use Victoria's transfer of land fees calculator give reliable figures based on current legislation and fee units.

Check Your Concession Eligibility Early

If you are a first-home buyer, pensioner, moving into a new PPR, or buying off the plan, concessions can save you tens of thousands. Your conveyancer can tell you what evidence and declarations you will need.

Leave a Buffer

Duty and fees can change with a new financial year or government update. Allow some breathing space in your budget, especially if your purchase might straddle 1 July.

Watch Out for Timing and Penalties

Duty must be paid by strict deadlines. If things are not lodged and paid on time, penalty interest can accrue. Having a conveyancer tracking this as part of settlement helps avoid unnecessary extra cost.

How a Conveyancer Manages Transfer Duty and Title Fees

From a buyer's perspective, all of these numbers arrive neatly on a settlement statement. Behind the scenes, your conveyancer is doing quite a bit of work to make that happen.

For a typical Melbourne purchase, the Pearson Chambers Conveyancing team will usually:

Review your contract and Section 32 statement, flagging duty issues such as off the plan contracts, foreign purchaser status, or complex structures
Confirm your duty position early, including any concessions or exemptions you appear to qualify for
Prepare and lodge the Digital Duties Form and arrange payment of land transfer duty through Duties Online
Calculate all Land Use Victoria registration fees and the PEXA fee for the transaction
Coordinate with your lender so the bank's requirements, mortgage registration and duty payment all line up on settlement day
Check your settlement statement to ensure duty, registration and PEXA figures have been picked up correctly and that you are not paying any fee twice

Because we work in Victorian conveyancing day in, day out, we see the same patterns over and over again. A quick tweak early on, such as clarifying whether you will genuinely live in the property, can make the difference between paying full duty and receiving a valuable concession.

When You Should Get Advice

You should think about getting tailored advice early if:

You are a first-home buyer and unsure which concessions or grants you can combine
You are buying off the plan and not sure how the dutiable value will be worked out
Someone involved is overseas or on a temporary visa, or you are using a trust or company
You are moving assets within a family and want to understand the duty consequences before signing
Your purchase price is close to a threshold, for example around $600,000 or $750,000, where different rules can apply

Duty and title fees are governed by detailed legislation and constantly tweaked policy. Online calculators are a helpful guide, but they cannot replace a proper review of your specific contract, structure and plans.

Need Help with Transfer Duty or Title Fees on a Melbourne Property?

If you are looking at a property and trying to make sense of the extra costs, you do not have to guess.

The team at Pearson Chambers Conveyancing can:

Give you a clear, plain-language duty estimate based on your situation
Explain which concessions you may be able to claim and what conditions apply
Lay out the expected title registration and electronic settlement fees so you can budget with confidence
Review your Section 32 statement and contract complimentarily before you commit, so you know where you stand

For friendly, practical guidance on your Melbourne purchase or sale, get in touch:

Email: contact@pearsonchambers.com.au