Land Transfer Duty (Stamp) Duty waiver for Residential property: 

The Victorian Government has recently announced a land transfer (stamp) duty waiver for Victorian residential property with a dutiable value of up to $1 million. 

The waiver is applicable to the following purchases: 

  • For new residential properties, a 50% land transfer duty waiver of the duty otherwise payable applies; 
  • For existing residential properties, a 25% land transfer duty waiver of the duty otherwise payable applies; or
  • For vacant residential land, a 25% land transfer duty waiver of the duty otherwise payable applies. 

The waiver applies after all other eligible benefits (if applicable), such as the first home buyer duty concession, the principal place of residence concession and the pensioner concession and other 

The waiver does not apply to foreign purchaser additional duty. 

Eligibility criteria: 

To be eligible to receive this waiver: 

  • your purchase must be for residential property, whether or not you use it as your principal place of residence,  
  • have a dutiable value of $1 million or less,  
  • the contract must be signed on or after 25 November 2020 and before 1 July 2021, and 
  • the arrangement must be a bona fide purchase for adequate consideration (not a gift). 

The waiver does not apply to:

  • Any residential property transaction with a dutiable value over $1 million. 
  • A transfer that obtains the commercial and industrial land concession (i.e. the purchase of residential property in regional Victoria for the purpose of converting it to be used for a commercial or industrial use). 

Residential property is:

  • Land capable of being used solely or primarily for residential purposes and that may lawfully be used in that way. 
  • This means the land must have a completed home that you can lawfully live in at the time of the transfer. If the land is a mixed use property (e.g. a milk bar and house) then the primary use must be residential. 
  • Vacant residential land described in codes 100 to 109 of the Australian Valuation Property Classification Code (AVPCC). 

 How to apply: 

You or your representative (i.e. conveyancer) are currently required to provide information about a transaction when lodging the Digital Duties Form. The State Revenue Office will rely on the information disclosed in this form for the purpose of applying the waiver. 

The State Revenue Office will apply the waiver automatically if all eligibility criteria are met at settlement. 

If you have any questions regarding this article, please contact the Davidsons team on 03 5221 6399 or email us at info@davidsons.com.au. 

 

Disclaimer: this information is of a general nature and should not be viewed as representing financial advice. Users of this information are encouraged to seek further advice if they are unclear as to the meaning of anything contained in this article. Davidsons accepts no responsibility for any loss suffered as a result of any party using or relying on this article.