Land transfer duty waiver for residential property transactions of up to $1 million

The Victorian Government has announced a land transfer (stamp) duty waiver for purchases of Victorian residential property with a dutiable value of up to $1 million.

• For new residential properties, a 50% land transfer duty waiver of the duty otherwise payable applies.
• For existing residential properties, a 25% land transfer duty waiver of the duty otherwise payable applies.
• For vacant residential land, a 25% land transfer duty waiver of the duty otherwise payable applies.

The waiver applies after all other eligible benefits, such as the first home buyer duty concession, the principal place of residence concession and the pensioner concession, have been taken into account. However, the waiver does not apply to foreign purchaser additional duty.

Is my transaction eligible?

To be eligible for this waiver:

• your purchase must be for residential property, whether or not you use it as your principal place of residence, 
• have a dutiable value of $1 million or less, 
• the contract must be signed on or after 25 November 2020 and before 1 July 2021, and
• the arrangement must be a bona fide purchase for adequate consideration (not a gift).

The waiver does not apply to:

• Any residential property transaction with a dutiable value over $1 million.
• A transfer that obtains the commercial and industrial land concession (i.e. the purchase of residential property in regional Victoria for the purpose of converting it to be used for a commercial or industrial use).

What is residential property?

Residential property is:

• Land capable of being used solely or primarily for residential purposes and that may lawfully be used in that way.
• This means the land must have a completed home that you can lawfully live in at the time of the transfer. If the land is a mixed use property (e.g. a milk bar and house) then the primary use must be residential.
• Vacant residential land described in codes 100 to 109 of the Australian Valuation Property Classification Code (AVPCC).

Definition of a new home:

A 'new home' means the same as it does under the First Home Owner Grant Act 2000. It includes a newly built home and a land and building package.

How do I apply?

You or your representative are currently required 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 for the purpose of applying the waiver.

The State Revenue Office will apply the waiver automatically if all eligibility criteria are met.

*Subject to clients meeting the criteria, see link below.
https://www.sro.vic.gov.au/land-transfer-duty-waiver-residential-property-transactions-1-million#:~:text=The%20Victorian%20Government%20has%20announced,of%20up%20to%20%241%20million.&text=For%20existing%20residential%20properties%2C%20a,the%20duty%20otherwise%20payable%20applies.