Buying property - stamp duty exemptions & concessions
First home buyers
A first home buyer who signs a contract on or after 1 July 2017 is exempted from paying stamp duty, for an established or new home, if the dutiable value of the property does not exceed $600,000.
A concessional stamp duty assessment rate will apply on a sliding scale for that first home buyer if the dutiable value is between $600,001 and $750,000.
The dutiable value is the purchase price less any deductions (e.g. Off The Plan (OTP) concession).
Off the plan buyers
The OTP concession rate available for contracts signed prior to 1 July 2017, which previously reduced the stamp duty payable based on an allowance for post-contractual construction costs for all properties, will no longer apply to holiday homes, and investment or commercial properties. It will only apply to a purchase of a principal place of residence (PPR), and only if the dutiable value is less than $750,000 (after the OTP concession rate is applied) for a first home buyer, or if the dutiable value is less than $550,000 (after the OTP concession rate is applied) if the purchase is not of a first home.
Spousal & de facto transfers
Transfers between spouses and domestic partners are no longer exempt from payment of stamp duty for the purchase of an investment (non-PPR) property.
Exemptions or concessions may apply in other circumstances e.g. deceased estates and family farms.
Please note that important eligibility criteria will apply for all concessions and exemptions.
For information on stamp duty exemptions and concessions and how they may apply to your circumstances, please contact our office on 03 9550 4600 and speak with one of our experienced property lawyers or conveyancers.
You can also visit the State Revenue Office website: www.sro.vic.gov.au