The NEW 2021-2022 Melbourne Land Transfer Duty Concession and Exemption that every purchaser needs to know!
On 25 June 2021, the State Revenue Office (SRO) announced the new temporary land transfer duty concession and exemption for Melbourne city residential property transactions, which are also eligible for foreign purchasers!
Livable Conveyancing provides you with all the information you need to know about it!
Land Transfer Duty Concession and Exemption in Brief.
This temporary land transfer duty concession and exemption are available for purchases of residential property, with a dutiable value of up to $1 million, located within the City of Melbourne local government area:
A 50% concession is available for new residential properties that:
the completion of construction is within 12 months,
the relevant contract entered into from 1 July 2021 to 30 June 2022.
A 100% exemption is available for new residential properties that:
have remained unsold for 12 months or more since the completion of construction,
the relevant contract entered into from 21 May 2021 to 30 June 2022.
City of Melbourne local government area.
Am I eligible for it?
To be eligible for this concession or exemption, your purchase must:
be for residential property,
have a new home affixed to the land,
have a dutiable value of $1 million or less,
be located in the City of Melbourne local government area, and
be a bona fide (genuine) purchase for adequate consideration (not a gift).
Want to know more about the residential property and other conveyancing concepts? Go to our conveyancing FAQ page or simply contact Livable Conveyancing now to check your eligibility!
Additional questions you might want to ask.
Does it have to be my principal place of residence?
No, it is not necessary that you use the new home as your principal place of residence, which means it can be an investment purchase.
Will the concession or exemption be available for the purchase of vacant residential land (i.e. a house built subsequent to settlement)?
No, the exemption or concession only applies to new residential properties where there is a home affixed to the property at the time of transfer.
What if it is a gift transfer?
No, the concession or exemption is only available for ‘genuine’ purchases. Gifts, including partial gifts, are not entitled to the concession or exemption.
Can this concession or exemption be applied in conjunction with other concessions?
Yes, the concession or exemption will apply to the land transfer duty payable after all other relevant concessions are applied to the transfer. These may include the:
first home buyer duty concession,
principal place of residence concession,
off-the-plan concession, and
pensioner concession.
Can I obtain the concession or exemption as a foreign purchase?
Yes, all purchasers of residential property, including a foreign purchaser, are entitled to the concession or exemption provided the transfer meets the eligibility requirements. However, the concession or exemption will not apply to the foreign purchaser additional duty component of the land transfer duty calculation.
Can I obtain the concession or exemption more than once?
Yes, the concession or exemption is not limited to one purchase. Provided your transfer meets all eligibility criteria you can obtain the benefit of the concession or exemption more than once.
How to apply for this concession and exemption?
In order to apply, you need to provide information about a transaction when lodging the Digital Duties Form. The State Revenue Office will rely on the information disclosed in this form to automatically apply for the concession or exemption if all eligibility criteria are met.
Sounds complicated? Livable Professional Conveyancing team has extensive experience in applying for duty wavery and concessions. We are here to help you get the most out of this latest scheme! Our team provides dedicated services to take care of the whole process for you, from checking your eligibility, gathering supporting evidence, to completing and lodging the application.
Contact us now for more information and get a Free Quote today!
