The Victorian State Government has announced as part of the Victorian State Budget for 2017/2018 that various measures will be introduced that impact State taxes.
One of the measures includes the removal of the stamp duty exemption for transfers of investment and commercial properties between spouses and domestic partners from 1 July 2017.
Exemptions for the principal place of residence and for transfers following a relationship breakdown will remain in place.
The Andrews Government website states that “these changes reflect the Labor Government’s efforts to support first home owners, not property investors, and bring Victoria’s policy on property transfers between spouses into line with NSW, QLD and WA”.
The effective date will be 1 July 2017 (subject to the legislation being passed by Parliament, which is likely to be in June 2017).
What does this mean for financial planners and accountants?
You should review your clients’ circumstances, taking into consideration asset protection and taxation issues including income tax, capital gains tax and land tax. If a spousal transfer is required, you should immediately advise your client to obtain independent legal advice and arrange for the spousal transfer to be completed prior to 1 July 2017.
There may be significant stamp duty implications if not addressed prior to 1 July 2017.
We are able to assist your clients in a timely manner to ensure that they meet the deadline.
What does this mean for you?
You should seek advice from your accountant and/or financial planner to have your personal and financial circumstances reviewed so that if a spousal transfer is required, you are able to act quickly.
We are able to assist you in arranging the spousal transfer and liaising with your mortgagee (if any) for consent to any transfer which will likely involve mortgage documents being revised.
Two simple steps to appoint us to act for you:
- Complete the spousal transfer questionnaire by clicking the document below.
- Email it to a member of our property team listed on this page
We estimate our professional fees for a spousal transfer to be $750 plus GST and disbursements. This fee estimate includes the preparation of the Transfer by Married Spouses/Domestic Partners Statutory Declaration, the State Revenue Office Purchaser Statement, the Transfer of Land, liaising with your mortgagee (if applicable) in relation to consenting to the transfer, discharging an existing mortgage and registering the Transfer of Land and new mortgage (as applicable), preparing the Notice of Acquisition and sending to relevant authorities and related matters.
Please contact our Property & Development team should you have any queries.