Stamp duty (land transfer duty) for first-home buyers purchasing a home with a dutiable value of not more than $600,000 has been abolished for contracts entered into from 1 July 2017.
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.
This is an exemption from land transfer duty (commonly known as stamp duty) for first-home buyers who buy a home with a dutiable value of $600,000 or less.
First-home buyers buying a home with a dutiable value from $600,001 to $750,000 will be entitled to a concessional rate of duty, calculated on a sliding scale.
In most cases, the dutiable value of a property is the price you pay for it minus any deductions (such as the off-the-plan concession). If the price you pay for the property is less than market value, the dutiable value will be the market value minus any deductions.
The concession applies on a sliding scale. The closer the dutiable value is to $600,001, the greater the concession.
|Examples of first-home buyer duty concession|
|Dutiable value||Normal duty||Duty after concession|
The first-home buyer exemption and concession are available for both established and new home purchases.
Further information on transitional arrangements, including whether nominations change the availability of the new exemption and concession, will be provided as these details become available. For further details please check the State Revenue Office website http://www.sro.vic.gov.au/node/5814
Speak to one of our Sales Professionals for further clarification