Changes to Stamp Duty concessions

In the latest budget, the government have announced a number of changes to stamp duty concessions that will make an impact of purchasers.

The main points of interest for us are:

• Stamp duty concession for property transfers between spouses/domestic partners is available only for a principal place of residence transfer from 1 July 2017. The exemption no longer applies to transfers of investment or commercial properties between spouses/domestic partners.

 

• The exemption for transfers of property following a relationship breakdown has not been altered or removed. It continues to apply to all properties, including investment and commercial properties.

 

• Australian Defence Force personnel are exempt from the first home owner grant residency requirement from 27 June 2017. The exemption applies to current members of the Australian Army, Air Force or Navy who are enrolled to vote in Victorian elections and are either on duty or leave.

 

• Land transfer duty has been abolished for first-home buyers who purchase a property valued at or below $600,000 and phased in for properties valued up to $750,000. The exemption and concession apply to dutiable transactions arising from a contract entered into on or after 1 July 2017.

 

• The off-the-plan duty concession is restricted to properties acquired by owner/occupiers who are eligible for the principal place of residence or first home buyer duty concessions. The concession is no longer be available for residential investment property purchases or commercial property purchases. These changes apply where the contract is entered into on or after 1 July 2017.

 

• The First Home Owner Grant (FHOG) has been doubled to $20,000 for new home purchases in regional Victoria. First-home buyers of new homes in metropolitan Melbourne will continue to receive the $10,000 FHOG amount.

More details on these and other changes can be found at the State Revenue Office website

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