Stamp Duty concession for a Principal Place of Residence (PPR)
What is a PPR concession?
A duty concession for a principal place of residence (PPR) was introduced as part of the Victorian Government’s election commitments during the 2006 State Election. To enact this commitment, Division the Stamp Duties Act was amended to provide a duty concession for homes valued at more than $115,000 and up to $500,000 in the following manner:
| Dutiable value of the PPR | Reduced rate of duty | Standard rate of duty | Difference |
| > $115,000 to $400,000 | $2560 plus 5% of amount > $115,000 | $2560 plus 6% of amount > $115,000 | Rate reduction of 1% |
| > $400,000 to $500,000 | $16,810 plus 6% of amount > $400,000 | Duty reduction of $2850 |
Eligibility requirements
If you entered into a contract to purchase your home on or after 1 January 2007, you may be entitled to the PPR concession if you: use the property as your PPR within 12 months of becoming entitled to possession of the property (which usually occurs at settlement), and reside in the property for a continuous period of at least 12 months.
Where there are two or more purchasers, at least one of them must satisfy the above requirements. However, it is not necessary for the same purchaser to occupy the home for the whole 12 months. You do not have to be a first home buyer to receive the PPR concession. If these requirements are not met, duty will be reassessed at the standard rate.
The Commissioner of State Revenue (the Commissioner) may exercise his discretion to vary the residence requirements where he is satisfied that there is a good reason for doing so. Land will not be considered as occupied as a PPR unless there is a building on the land that, in the Commissioner’s opinion, is designed and constructed primarily for residential purposes and may lawfully be used as a PPR. If you have received the PPR concession, you must notify the Commissioner in writing, of any changes in your circumstances that will result in the residence requirements not being met.
If you are eligible for the Bonus and the PPR concession, you cannot receive both. The Bonus, whether $3000 for an established home or $5000 for a new residential premises) is more generous than the maximum amount of PPR concession which is $2850.