Understanding stamp duty concessions

There are a number of stamp duty concessions available, however, it is important to be aware that the Office of State Revenue applies strict eligibility criteria. So let’s talk about the key stamp duty concessions available to home buyers.

First Home Owners’ Duty Concession

If you’re buying your first home, you may be eligible for the ‘First Home Owners’ Duty Concession’, provided the following applies to you:

  1. You have never owned a property before;
  2. The purchase price is less than $550,000.00;
  3. You are 18 years of age or older;
  4. You have never claimed the ‘first home owners vacant land concession’; and,
  5. The property will be your principle place of residence (defined below).

It’s important to note that criterion (1) excludes anyone who has owned a property anywhere in the world. For example, if you have owned home interstate, or even overseas, you will not qualify for this concession (however, you may qualify for the ‘Home Duty Concession’).

The ‘First Home Owners’ Duty Concession’ means you will pay no stamp duty on the transaction.

First Home Owners’ Vacant Land Duty Concession

This concession applies where you purchase vacant land, with the intention of building your first home. To qualify, you must:

  1. Have never owned a property before;
  2. Purchase vacant land – that is, there is no part of a building on the land at purchase;
  3. Have a purchase price of less than $400,000.00;
  4. Be 18 years of age or older;
  5. Never have claimed the ‘first home owners vacant land concession’ previously;
  6. Build your first home on the vacant land (and build only 1 home on the land);
  7. and,
  8. The property will be your principle place of residence (defined below).

The ‘First Home Owners’ Vacant Land Duty Concession’ entitles you to discount the stamp duty amount by

Home Owners’ Duty Concession

The requirements for the ‘Home Owners’ Duty Concession’ are:

  1. You intend to move into your new home within 1 year of the transfer date; and,
  2. The property will be your principle place of residence (this is defined below).

This concession entitles you to a reduced rate of stamp duty. For more information or a calculation please contact us.

Is it my ‘Principle Place of Residence’?

Your ‘Principle Place of Residence’ is simply the home you ordinarily reside in. For stamp duty purposes, it’s important that you remain in the home for 1 year after claiming one of the ‘Principle Place of Residence’ Concessions above. If things change and the property ceases to be your principal place of residence before 1 year is up, it’s very important to let your legal advisers know, so that an adjustment can be made with the Office of State Revenue. A property may cease to be your principle place of residence even if you don’t sell it, for instance, if you decide to move out and rent the property.

How do I claim my concession?

In order to claim a stamp duty concession, you will be required to sign a form stating that you do meet all the criteria for the concession. This is legal document which must be witnessed by a qualified, generally a solicitor, Justice of the Peace or Commissioner of Declarations. If you are overseas, there are additional witnessing officers – if this is applicable to you, we can provide further guidance in regards to qualified witnessing officers around the world.

If you have any further queries about eligibility or claiming a stamp duty concession, please feel free to Contact Us or Subscribe to gain access to our online resources. Subscribing is free and easy!