What taxes apply when selling a property in Victoria?

When selling a property in Victoria, Australia, several taxes and fees may apply, depending on the property type, its use, and your circumstances:
Capital Gains Tax (CGT):
CGT is a federal tax levied on the profit (capital gain) made from selling a property, calculated as the difference between the sale price and the cost base (purchase price plus allowable expenses like stamp duty, legal fees, and improvements). If the property is an investment or holiday home, you may need to pay CGT on any profit made from the sale. However, your primary residence is usually exempt.
The profit from the sale (selling price minus purchase price, costs, and improvements) is added to your taxable income. If you held the property for over 12 months, you may get a 50% discount on CGT (for individuals/trusts).

Goods and Services Tax (GST):
Goods and Services Tax (GST) is a broad-based 10% tax on most goods, services, and other items sold or consumed in Australia
GST generally doesn’t apply to the sale of residential properties but may apply for commercial properties or new homes.

Land Transfer Duty (Stamp Duty):
Land Transfer Duty, commonly known as stamp duty, is a state tax in Victoria imposed on the transfer of property ownership (e.g., buying or selling real estate). It’s typically paid by the buyer, not the seller, based on the property’s value or sale price.