Great opportunity for first home buyers in 2017
Stamp duty exemptions for properties under $600k
New stamp duty measures for first-home buyers
The Victorian Government has announced that stamp duty (land transfer duty) will be abolished for first-home buyers purchasing a home with a dutiable value of not more than $600,000.
This will make the existing first-home buyer 50 per cent duty reduction that applies to the purchase of a home with a dutiable value of not more than $600,000 a full exemption.
Further, duty will be phased-in for eligible first-home buyers who purchase a home with a dutiable value between $600,001 and $750,000.
Subject to the passage of the State Taxation Acts Amendment Bill 2017, the new measures will apply for contracts entered into from 1 July 2017.
Abolishing stamp duty for first home buyers
How will it work?
The exemption and concession are available for new and established home purchases and will be applicable to contracts signed from 1 July 2017.
What are the criteria to qualify for an exemption or concession?
- The home must have a dutiable amount of less than $600,000 to receive a stamp duty exemption.
- A concession applies on a sliding scale for purchases with a dutiable amount between $600,000 and $750,000.
- The dutiable amount of a property is generally the greater of the purchase price or market value, minus any deductions (such as a deduction for an off-the-plan the purchase).
- The purchaser and the purchaser’s partner must be first home buyers, consistent with the definition under the First Home Owner Grant Act 2000.
- The purchaser must be an Australian citizen or permanent resident (New Zealanders holding a special category visa are considered permanent residents if they are in Australia at the time of settlement).
- The purchased property must be used as the purchaser’s principal place of residence for a continuous period of 12 months, commencing within 12 months of possession of the purchased property.
Prospective first home buyers can contact the State Revenue Office on 13 21 61 to find out more about their eligibility.
All above information published by The Broker Team has been supplied by State Revenue Office and was relevant at the time it was published. If you have any questions, please contact us