The Victorian Government has introduced three new land transfer duty measures as part of the 2021-22 Victorian Budget. We have provided a summary of each measure below.
If you have any questions regarding any of the measures, including assistance in determining your eligibility, please contact us on 03 5443 0344 or email email@example.com
There is a temporary land transfer (stamp) duty concession and exemption available on purchases of residential property, with a dutiable value of up to $1 million, located within the City of Melbourne local government area.
The concessions and exemption available are:
The 50% concession applies after all other eligible benefits have been taken into account, such as:
Am I eligible?
To be eligible for this concession or exemption, your property purchase must:
For more information on the property concession and exemption, including how to apply, click here.
Buying a home before any building works have commenced or have finished is known as ‘buying off-the-plan’. When you buy off-the-plan, you may be eligible for a duty concession that can apply to contracts for:
The date of the contract is important as it affects the scope of the off-the-plan concession.
How does the concession work?
You pay duty on the dutiable value of your property, which is usually the price paid for the property or its market value, whichever is greater. However, when the off-the-plan concession applies, the dutiable value is the contract price minus the construction or refurbishment costs incurred on or after the contract date. This reduces the amount of duty you pay.
Am I eligible?
Eligibility for this concession depends on a number of factors, with the most important being when you signed your contract.
To be eligible, you must pay at least the market value for your property. If your contract price is less than market value, duty will be assessed on the property’s value at the time you entered into the contract.
The full eligibility criteria for this concession is extensive and you should view the State Revenue Office website for more information.
For more information on this concession, including full eligibility criteria and how to apply, click here.
There has been a premium rate of land transfer duty introduced for high-value property transactions with a value of more than $2 million.
From 1 July 2021, the duty payable will increase to $110,000 plus 6.5% of the dutiable value of more than $2 million.
The premium rate of duty does not apply to a dutiable transaction or an acquisition of an interest in a landholder that occurs on or after 1 July 2021 that was made pursuant to an agreement or arrangement entered into before 1 July 2021.
Meaning of agreement or arrangement
An agreement or arrangement is considered to mean a concerted action or plan to undertake a specific transaction.
While an executed binding agreement for the transfer is not required to show that there is a concerted action or a plan, the concerted action or plan must:
A commitment to undertake the dutiable transaction must be shown, rather than simply being an intention to investigate or consider it.
For more information on this duty rate, click here.