What is the typical settlement period in Australia?

Default expectations: NSW residential ~42 days; VIC ~30-60 days (often 60 for purchaser-favoured contracts); QLD + ACT 30-45 days; WA + SA 30 days; TAS variable. These are vendor-set in the contract; buyer can counter-propose during negotiation. Auction contracts default to vendor's choice unless pre-bid amendment.

Why length matters: lender-side processing (formal approval + valuation + serviceability) takes 2-4 weeks at most majors, longer at non-majors. A 30-day settlement compresses this. If you don't have unconditional finance approval at contract exchange, push for 45-60 days. If you do, 30 is fine.

When to push longer (60-90 days): you need to sell an existing property simultaneously (hard with shorter settlements), you're using off-the-plan FHB stamp-duty concession (VIC's 50% concession requires specific timing), you're awaiting bonus / commission payment to top up your deposit. Vendor's flexibility depends on their next-purchase timing, sellers buying again often want to align settlements.

Penalty interest for delay: if buyer can't settle on the agreed date, vendor can charge penalty interest at the contract rate (typically RBA cash + 8-10%) on the outstanding balance per day. Two weeks delay on a $1M purchase ≈ $4-6K penalty. Vendor can also seek termination + retain the deposit if delay exceeds the contract's 'time of essence' clause window. Always confirm settlement date with conveyancer + lender 5 business days ahead.