What Is A Financial Settlement Schedule

If you're buying or selling property in Melbourne, settlement day can feel like peak hour on St Kilda Road: everyone has somewhere to be, money is moving, and timing matters. The document that keeps it all flowing is the financial settlement schedule. Think of it as the transaction's master checklist that makes sure every dollar goes where it should, at the second it should, so the title transfers and the keys change hands.

In Victoria, most property deals now settle online through PEXA, Australia's electronic conveyancing network. Inside that online workspace sits the 'Financial Settlement Schedule' (often shortened to 'FSS'). It's a collaborative ledger used by your conveyancer or solicitor, the other side's conveyancer, and the banks. It lists the sources of funds coming in and every payment going out, then checks the maths so the figures balance to the cent.

What is a Financial Settlement Schedule?

A financial settlement schedule is the live, shared table that orchestrates the money side of your settlement. It shows exactly:

which funds are coming in (loan proceeds, your cash contribution, trust funds)
which payments are going out (the vendor's payout, discharge of mortgage, council and water adjustments, owners corporation fees, Land Use Victoria registration fees, the PEXA fee, and any required tax withholdings)
when settlement is booked and whether every party is 'ready'

When that table is balanced and all required documents are signed, settlement runs. If anything is not ready, the booking can be moved to the next available time on the day. PEXA provides defined time slots during business days, and unsettled workspaces can roll over to later slots if needed.

Why Melbourne Buyers and Sellers Should Care About FSS

This schedule isn't just admin. It is how your bank knows how much to contribute, how the vendor's bank gets paid out, and how statutory fees and taxes are remitted. In practical terms, the FSS removes the old scramble for cheques and replaces it with verified electronic payments that land as cleared funds, often the same day. That helps a seller in, say, Brunswick who needs their surplus for a back to back purchase in Reservoir later that afternoon.

Where the FSS Sits in the Victorian Property Settlement Process

Before Settlement: The parties agree on a settlement date in the contract, commonly 30 to 90 days after sale. Your conveyancer then prepares the statement of adjustments, confirms duty and fees, and builds those figures into the FSS.

Inside PEXA: Each participant adds their pieces: banks add loan funds and payout figures, conveyancers add adjustments and payees, and the workspace checks that sources equal destinations.

On Settlement Day: Once all statuses show 'ready' and the schedule balances to zero, settlement executes and title documents are lodged electronically with Land Use Victoria.

Components of a Financial Settlement Schedule

Sources of Funds

Incoming loan from the purchaser's bank
Purchaser 'shortfall' from a trust account or the PEXA Source Account
Occasionally, vendor sources if the payout exceeds the sale proceeds (rare, but possible)

Destination Payments (Typical Line Items)

Amount due to the vendor
Discharge of the vendor's mortgage to the outgoing bank
Council rates and water charges adjusted to the settlement date
Owners corporation fees for apartments and townhouses, also adjusted
Registration (lodgement) fees to Land Use Victoria
PEXA transaction fee
Any statutory withholdings, such as GST at settlement for new residential property, or foreign resident capital gains withholding if required

Booking and Readiness

The FSS also shows the settlement date and time and whether every party is 'ready'. If a bank or registry system is not ready at the booked minute, the workspace can roll to a later time slot the same day. Your conveyancer will watch this in real time.

Property Settlement Adjustments in Victoria

Victorian settlements adjust outgoings so that the vendor pays up to, and the buyer from, the settlement date. That usually covers council rates, water authority charges, and owners corporation levies. Your statement of adjustments sets these out, and those totals flow into the FSS.

Important 2024 Land Tax Changes

From 1 January 2024, most Victorian residential sales under $10 million can no longer adjust land tax at settlement. If you see a land tax line in a standard contract for a sub $10 million property, that clause is generally of no effect and penalties can apply to vendors who try to pass it on. This change should be reflected in your contract and your FSS.

Taxes in Melbourne Property Settlement Schedules

Land Transfer Duty (Stamp Duty) and Digital Duties Form

Before settlement, the purchaser completes the State Revenue Office's Digital Duties Form, usually via their conveyancer, so duty can be assessed and the right concessions applied. Most transactions are lodged through Duties Online and must be in place ahead of settlement. The assessed duty then appears as a payment in the FSS where relevant.

GST at Settlement for New Residential Property

For new residential premises and certain vacant land, the purchaser must withhold and remit GST at settlement. The ATO requires lodging 'Form one: GST property settlement withholding notification' before settlement and 'Form two: settlement date confirmation' at or just after settlement. Those details and amounts can be included as destinations in the FSS.

Foreign Resident Capital Gains Withholding (FRCGW)

From 1 January 2025, the withholding rate increased to 15 percent and the previous $750,000 threshold was removed. Unless the vendor provides an ATO clearance certificate confirming Australian tax residency, the purchaser must withhold and remit 15 percent of the price. If withholding applies, it will be included in the FSS as a destination payment to the ATO.

Common Settlement Fees in Melbourne

PEXA Fee: A per transaction platform fee, separate from government lodgement charges. It is auto populated in the workspace and paid as part of settlement.

Land Use Victoria Registration Fees: For the transfer, the new mortgage, and any discharge. The State's annual schedule changes on 1 July, so fees can differ if your settlement crosses the new financial year.

Melbourne Property Settlement Example

Let's say you are buying a two bed flat in Brunswick for $800,000 with a 10 percent deposit and a 90 percent loan. Settlement is booked for 15 October 2025 at 11:30. Your conveyancer has prepared the statement of adjustments and loaded the figures into the FSS. You'll typically see:

Sources

Loan proceeds: $720,000 (from the incoming mortgagee)
Purchaser shortfall: about $93,000 (your cash held in trust or in the PEXA Source Account), representing the balance after deposit, plus adjustments and fees

Destinations

Vendor: balance due after adjustments and the mortgage payout
Outgoing bank: discharge payout
Council rates: pro rated to 15 October
Water authority: fixed service charges plus usage to settlement
Owners corporation: remaining quarter's levy
Duty: assessed by SRO based on price and any concessions
Registration fees: transfer plus mortgage
PEXA fee
If new residential, any GST withholding
If the vendor does not produce an ATO clearance certificate, FRCGW at 15 percent of price is withheld and paid to the ATO

The totals will balance to zero. Everyone signs off, the workspace turns 'ready', and funds are paid instantly at the booked time. Title documents lodge electronically with Land Use Victoria.

Linked Settlements for Same Day Transactions

Buying in Pascoe Vale and selling in Coburg on the same day? PEXA can link settlements so the surplus from your sale flows automatically into your purchase as a source of funds. All linked workspaces must be booked for the same time and show 'ready'. Your conveyancer will coordinate timing and contingencies.

Common Melbourne Settlement Delays

Bank Readiness: Banks need time to sign documents and load funds. If a bank is not ready, the booking may roll to a later slot that day.

Missing Forms: No Digital Duties Form or missing concession evidence means duty cannot be finalised.

Contract Clauses that Conflict with the Law: For example, trying to adjust land tax on a sub $10 million sale after 1 January 2024.

Platform or Connected System Outages: While rare, outages across banks and registries can ripple into settlements. Your conveyancer will build in buffers and communicate early if a rollover is wise.

Section 27 Deposit Release in Victoria

In Victoria, a vendor can request early release of the deposit under section 27 of the Sale of Land Act. There are strict conditions and timelines, including the purchaser's right to object within a set period. If a section 27 release happens, it does not change the eventual 'balance due' in the FSS, but it can affect cash flow for the vendor ahead of settlement. Seek advice before agreeing.

How to Review Your Financial Settlement Schedule

Check the Booking: Date and time, Melbourne time.

Scan the Sources: Is your cash shortfall correct after the deposit and any lender fees.

Check the Destinations: Council and water adjustments look right, owners corporation fees match the certificate, duty and registrations align with your conveyancer's advice, and the PEXA fee is present.

Look for Withholdings: GST for new builds and FRCGW if applicable.

Confirm Readiness: Your bank, the other side, and both conveyancers are marked 'ready'.

If anything feels off, call your conveyancer. A five minute call beats a late rollover.

Quick Financial Settlement Schedule Reference

The FSS is the live table in PEXA that moves money at settlement
Outgoings are adjusted to the settlement date; land tax is no longer adjusted for most sales under $10 million from 1 January 2024
Purchasers must complete the Digital Duties Form before settlement so duty can be assessed
For new residential property, purchasers withhold and pay GST to the ATO at settlement and lodge Forms one and two
From 1 January 2025, FRCGW withholding is 15 percent with no dollar threshold unless the vendor provides a clearance certificate
PEXA and Land Use Victoria charge separate fees that appear in the FSS

Melbourne Property Settlement Tips

Long Weekends: Banks operate on business days only, so a Friday afternoon settlement before the AFL Grand Final public holiday can be tight. Consider booking earlier in the day or the day before.

Apartments: Owners corporation fees and water usage timing can catch people out. Make sure the most recent owners corporation certificate and water usage read are reflected in the schedule.

Back to Back Moves: If you are selling in the morning and buying after lunch, ask your conveyancer about a linked settlement, and keep the removalist in the loop.

Need Professional Assistance?

If you want a calm, clear walkthrough of your figures, or a quick sense check of whether your schedule reflects the contract and the current Victorian rules, reach out. We're local, we speak plain English, and we know how Melbourne settlements run on real streets and real timetables.

Pearson Chambers Conveyancing

Email: contact@pearsonchambers.com.au