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Victorian Budget 2020-21 announcements-Land Tax and Stamp Duty Waiver

Posted by admin on 30/11/2020
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The Victorian Budget 2020-21 includes a number of announcements related to legislation administered by the State Revenue Office. The measures are listed here, along with their expected start date.

Land tax

  1. A 50% land tax discount for eligible build-to-rent developments, including an exemption from the absentee owner surcharge, until 1 January 2040 — expected start date 2022 land tax year.
  2. A land tax exemption for land owned and occupied by not-for-profit clubs that provide for the social, cultural, recreational, literary or educational interests of their members — expected start date 2021 land tax year.

Land transfer (stamp) duty

  1. Bringing forward the 50% land transfer (stamp) duty concession for commercial and industrial properties in regional Victoria — applies to contracts entered into on or after 1 January 2021.

       2. A land transfer (stamp) duty waiver of up to 50% on purchases of residential property in Victoria with a dutiable value of up to $1 million — applies to contracts entered into on or after 25 November 2020 and before 1 July 2021.
         

         Details:

    • 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.

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).

It is not necessary for the transfer of the property (i.e. settlement of the purchase) to occur during the waiver period. If the contract for the purchase was entered into during the eligibility period and all other eligibility criteria are met, a transfer after 30 June 2021 will be entitled to the waiver.

The waiver is not limited to one purchase. Provided your transfer meets all eligibility criteria you can obtain the benefit of the waiver more than once.

Our website will be updated with more detailed information as it becomes available.

 
 
Last modified: 09 December 2020

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