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Current duty exemptions, concessions and waivers for residential land

Current duty exemptions, concessions and waivers for residential land

If you are thinking of purchasing a residential property in Victoria, you may be eligible for certain stamp duty exemptions, concessions or waivers depending on your personal circumstances, including:

  • First home buyer exemption or concession
  • Pensioner exemption or concession
  • Principal place of residence concession
  • COVID-19 waiver

We have provided a summary of each below.

First home buyer exemption

You may be eligible for a one-off exemption from paying stamp duty if you purchase a property where:

  • the contract of sale was entered into after 1 July 2017;
  • the property is your principal place of residence. In this regard, you must commence residing in the property within 12 months of the date of settlement and you must live in the property as your principal place of residence for at least 12 months; and
  • has a dutiable value of $600,000 or less.

First home buyer concession

You may be eligible for a one-off stamp duty concession if you purchase a property where:

  • the contract of sale was entered into after 1 July 2017;
  • the property is your principal place of residence. In this regard, you must commence residing in the property within 12 months of the date of settlement and you must live in the property as your principal place of residence for at least 12 months; and
  • has a dutiable value between $600,001 and $750,000.

The amount of the concession is calculated on a sliding scale in accordance with the dutiable value of the property.

Pensioner exemption/concession

If you are an eligible pensioner, you may be eligible for a one-off stamp duty exemption or concession for a new or established home that has a value of $750,000 or less.

Full exemptions apply to homes with a value of $330,000 or less while a concession (on a sliding scale) will apply to homes with a value between $330,001 and $750,000.

PPR concession

You may be eligible for stamp duty concession if you purchase a property that you intend to be your principal place of residence and has a value of $550,000 or less. This is not a one-off concession and is available for various purchases, provided that the property is your principal place of residence at the time you acquire the property.

COVID-19 waiver

You may be eligible for a stamp duty waiver if you purchase a residential property on or after 25 November 2020 and before 1 July 2021 and the property has a dutiable value of up to $1 million.

The available concessions are as follows:

  • New residential properties: a 50% waiver of the stamp duty payable.
  • Existing residential properties: a 25% waiver of the stamp duty payable.
  • Vacant residential land: a 25% waiver of the stamp duty payable.

The waiver is applied on top of all other available concessions or exemptions (apart from the foreign purchaser additional duty) and is currently only available until 30 June 2021.

Certain criteria must be met to be eligible for the concessions.

If you have any queries in relation to stamp duty and concessions or exemptions that may be available to you, or wish to discuss a prospective purchase or sale of your property, please contact Kristy Muhlhan, Principal, who heads up our Property & Development Pillar, George Hanger, Associate or  Stewart Davis, Associate at Burke & Associates Lawyers.

Insight written by George Hanger

Contacts

Kristy Muhlhan

Principal

Kristy Muhlhan

Principal
LL.B (Hons) GRAD DIP. L.P., GAICD.
Since 2014, she has been an owner and Principal of the firm and has mastered a broad range of essential commercial and business skills which go hand in hand with the work she does for...

Stewart Davis

Associate

Stewart Davis

Associate
LL.B (Hons) B.Com
As well as property law, Stewart has had exposure to VCAT administration matters and commercial law, particularly servicing developer clients.

George Hanger

Associate

George Hanger

Associate
LL.B BA
George was admitted to legal practice in May 2015 after completing a Bachelor of Arts at the University of Melbourne and a Bachelor of Laws at Monash University.

Emma Dickens

Paralegal

Emma Dickens

Paralegal
Emma previously completed a Bachelor of Legal and Dispute studies at RMIT University in 2015.

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