The state government has sent its strongest signal yet that it is open to making changes to the controversial tax.
"We know stamp duty can be a barrier to buying your first home, moving house or downsizing - and that puts pressure on housing affordability," a spokesperson said.
"We've delivered exemptions and concessions for Victorians who need them most, but we're always looking at what more we can do to increase housing options across the state."
In 2023, a parliamentary inquiry urged the Victorian government to look into scrapping stamp duty and replacing it with a broad-based land tax.
The government released its response on Friday, which stated it "considers Victoria's taxation mix to balance many priorities and looks for opportunities for reform where possible".
It comes a month after Treasurer Tim Pallas warned the state's budget bottom line would take a $30 billion hit if stamp duty was scrapped.
Victoria's net debt was forecast to climb to $177.8 billion by June 2027 in a budget update released in December - some $6.4 billion higher than the forecast in May.
On Wednesday, the government introduced a bill to abolish stamp duty on commercial and industrial properties.
Instead, first buyers can pay the property's final stamp duty up front or make annual payments across 10 years equal to stamp duty and interest.Â
The Victorian Budget will be handed down on May 7.
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