Stamp duty, or transfer duty, is a tax payable to the Victorian State Revenue Office when you purchase property. When downsizing, it’s the duty on your *new* purchase that’s relevant, not the sale of your existing home.
As of December 2025, Victoria offers a potential stamp duty concession for eligible downsizers aged 60 years or over who meet specific criteria. This concession can reduce the amount of stamp duty payable when purchasing a home valued up to $750,000. Currently in Melbourne, particularly in the Eastern Suburbs where we see many established homeowners considering downsizing, this can represent a significant saving. The concession applies to new or established homes, and there are requirements around the value of the property you are selling and how long you’ve owned it. It’s important to note that from 2027, changes are planned to the stamp duty system with a potential shift to an annual property tax for some transactions, so eligibility criteria may evolve. We often see downsizers in areas like Balwyn and Doncaster favouring single-level homes or those with lower maintenance gardens, and understanding these costs is a key part of their planning. The State Revenue Office website provides detailed information and a calculator to estimate potential duty payable.
Calculating potential stamp duty is a crucial step when considering downsizing, and understanding available concessions can significantly impact your financial planning.