When purchasing or acquiring a property, land transfer duty also known as stamp duty is required to be paid to the State Revenue Office at the time the property is transferred. The amount of stamp duty to be paid largely depends on the market value of the property. However, there are a number of concessions or exemptions to purchasers. Each concession or exemption have certain eligibility requirements in order to qualify.
When purchasing your first home, you may be eligible for the first home buyer exemption or concession. A purchaser may be entitled to an exemption of stamp duty if the market value of the property is under $600,000, or a concession or reduction of stamp duty if the market value is between $600,001 and $750,000. To claim this exemption or concession, the purchaser is also required to be an Australian citizen or permanent resident and must live in the property as their principal place of residence. This exemption is only available to purchasers once, and purchasers cannot claim this exemption if they or their partner have claimed it previously.
Pensioners may also be eligible to claim a pensioner duty exemption or concession. Similarly to the first home buyer exemption or concession, this exemption is only available to a purchaser once. An eligible purchaser must hold an approved concession card, such as a Pensioner Concession Card or Health Care Card at the date of the transfer of land. An exemption to stamp duty may be available for eligible pensioners when the market value of the property is up to $330,000, while a concession may be available if the market value is between $330,001 and $750,000. The purchaser must also intend to live in the home as their principal place of residence.
There are a number of additional stamp duty exemptions and concessions available, including transfers of property of a deceased estate to a beneficiary in accordance with a Will, transfers between spouses (including transfers due to a breakdown of relationship) and transfers on family farms.
It is important to remember that stamp duty exemptions and concessions, also require the purchaser to pay the market value of the property to the vendor. If a property is gifted or sold for less than market value, then any stamp duty exemption or concession would not apply.
Wightons Lawyers can assist with all aspects of residential conveyancing and can advise on your stamp duty exemption or concession eligibility. We invite you to contact our office on 03 5221 8777 to discuss how we can assist.
This article is general information only and is not legal advice or a substitution for such advice. Always seek professional advice suited to your own circumstances.