In an effort to counteract the negative effect on the economy caused by the Coronavirus pandemic, the Victorian Government has announced a number of new measures to encourage prospective purchasers to buy property, stimulate the market and drive the economy.
This proposed relief plan contained in the Victorian Budget 2020/21 disclosed that the State Government will be investing over $293 million to fund a stamp duty concession of up to 50% for homes with a dutiable value up to $1 million. This presents purchasers with an opportunity to make considerable savings.
What Stamp Duty savings are available?
The following stamp duty waivers are available to eligible purchasers:
- 1. New residential properties are entitled to a 50% concession;
- 2. Existing residential properties are entitled to a 25% concession; and
- 3. Vacant residential land are entitled to a 25% concession.
This discount on stamp duty is in addition to any other benefit that a purchaser may be eligible for including any concession or exemption, for example, the first home buyers grant.
However, it should be noted that the waiver does not apply to foreign purchaser additional duty that may be imposed.
Who is eligible for the waiver?
To qualify for the stamp duty saving the following must apply to the purchase:
- 1. The property must be a residential property with no future intention of converting it to a commercial property;
- 2. The contract of sale must be fully executed on or after 25 November 2020 and before 1 July 2021;
- 3. The property must have a maximum dutiable value of $1 million;
- 4. The transaction must be a genuine purchase and not a gift or transfer without consideration paid; and
- 5. The waiver can apply to the transfer of a dutiable lease.
How is the Waiver Applied?
During the course of a conveyance, the acting solicitor will be required to complete the SRO Duties Online form on a purchaser’s behalf. The State Revenue Office uses the information disclosed in this form to assess the amount of stamp duty payable. Should a purchaser be eligible for the waiver, it will automatically be applied to the transaction at this time. So long as the eligibility criteria is met, the actual transfer of land can occur at any time and is not subject to the contract execution waiver period.
At Burke Lawyers, we provide expert legal advice specifically tailored to assist you in purchasing property, including advice for stamp duty, foreign investment and trusts.