Stamp Duty Exemption
The client, based in a major city in Victoria, is in the process of purchasing a newly built home valued at approximately AUD 1.3 million. She previously owned a property, which was acquired after a divorce settlement, but has since sold it and does not currently own any other properties. She intends to purchase the new property under sole ownership and is not a first home buyer. The expected settlement date for the new purchase is in 2025.
Questions about this case
These answers have been verified by a lawyer in the LEAP networkWhat are the current stamp duty rates for purchasing a property in Victoria, and are there any exemptions or concessions I might be eligible for?
In Victoria, stamp duty (also known as land transfer duty) is calculated based on the property's purchase price. For a property priced at approximately AUD 1.3 million, the standard duty payable would be around AUD 70,000. However, as you are purchasing a newly built property, you may be eligible for the off-the-plan concession, which can reduce the taxable amount depending on factors like construction status at contract signing. It's crucial to seek advice specific to your situation to ensure all potential exemptions or concessions are considered.
Is there a time frame within which I need to purchase the new property to potentially benefit from any stamp duty concessions?
In Victoria, to benefit from any stamp duty concessions, timing is crucial. Generally, for an off-the-plan or newly built home, the concession or exemption depends on the contract date. If the contract is signed before construction is completed, you may qualify for the off-the-plan concession, which can significantly reduce the dutiable value. Additionally, ensure that your purchase aligns with any time-sensitive concessions.
Are there any specific requirements or documentation I need to prepare to ensure a smooth property purchase process regarding stamp duty?
To ensure a smooth property purchase process in Victoria concerning stamp duty, prepare documentation like the contract of sale, proof of identity, settlement statement, and details of any concessions you may qualify for. Ensure you have builder’s documents or certifications related to the property's completion status.
Does the price or type of property I intend to purchase affect the stamp duty I will need to pay?
The price and type of property you intend to purchase can indeed affect the stamp duty you will need to pay in Victoria. As you're purchasing a newly built property, there may be benefits such as the off-the-plan concession, which reduces the stamp duty based on the contract price minus the construction amount yet to occur at the contract date.
If I decide to purchase off-the-plan or a newly built property, how does that impact the stamp duty I need to pay?
Purchasing an off-the-plan or newly built property in Victoria can offer certain stamp duty benefits. You may be eligible for the off-the-plan concession, which allows you to pay stamp duty on the dutiable value of the property at the time the contract is signed, potentially reducing the amount payable.
