As The Block 2026 heads into its highly anticipated auction day, the Victorian Government could be in line for a seven-figure payday before anyone even picks up the keys.
According to reporting by RealEstate.com.au, buyers of this year’s five Mount Eliza homes could collectively pay more than $1 million in stamp duty, even if every property sells at its reserve price.
Each of the homes at 2, 3, 4, 9 and 10 Mackillop Place has an advertised reserve of $3.45 million, which would see purchasers pay $204,250 in standard Victorian stamp duty per property.
If all five homes sell at reserve, the total stamp duty bill would hit $1,021,250, assuming no concessions or exemptions apply.
Ironically, that’s more than the Victorian Government received from selling the Jacksons Hill site in Sunbury to Channel Nine, where next year’s season of The Block is currently being filmed.
The former psychiatric hospital site reportedly sold for $1 million, despite spanning more than 2.6 hectares and featuring three heritage-listed buildings requiring extensive restoration. The Victorian Department of Transport and Planning previously said the sale price reflected independent market valuations and the property’s heritage obligations, according to RealEstate.com.au.
The Block buyers could pay even more if bidding climbs
While $204,250 is already a hefty upfront cost, that figure could rise significantly if auction prices exceed reserve.
RealEstate.com.au reports a buyer paying $4.2 million would face around $253,000 in stamp duty, while a $4.5 million sale would attract approximately $272,500.
Under Victoria’s premium stamp duty rates, properties valued above $2 million incur a base duty of $110,000 plus 6.5 per cent of the value above that threshold.
That means a successful bidder at reserve would already be spending more than $3.65 million before accounting for legal fees, inspections and other buying costs.
Buyer’s advocates weigh in
Veteran buyer’s advocate Nicole Jacobs, who has been involved with 13 seasons of The Block and has inspected all five homes, told RealEstate.com.au buyers need to fully understand the additional costs before bidding.
“You really have to make sure, as an advocate, that you’re pointing everything out.”
However, Jacobs questioned whether the market has enough buyers to push every property well beyond reserve.
“I don’t know if they’ve got enough buyers and enough depth across all five of these properties for that to happen.”
She also noted buyers would ultimately judge the homes on their quality, layout and long-term livability rather than their television fame, adding she had concerns about the privacy of some properties where outdoor entertaining areas face the street.
“The winners on the day will be those who actually get to sell in this market.”
Fellow Mount Eliza buyer’s advocate Madeleine Roberts described Victoria’s stamp duty as “absurd”, but suggested it was unlikely to deter buyers spending between $3 million and $4 million on a home.
“They know what they’re doing,” she said.
“They wouldn’t be buying into the hype.”
Auction day is almost here
The figures also don’t account for foreign purchaser surcharges, with eligible overseas buyers potentially facing an additional 8 per cent surcharge, taking their total stamp duty bill at reserve to almost $480,250, according to RealEstate.com.au.
With all five The Block homes set to go under the hammer on October 31, and the televised auction finale airing on November 1, the stakes are high — not just for contestants, but for buyers reaching deep into their pockets.
The Block airs on Channel 9 and streams on 9Now.
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