The Victorian Government has announced a land transfer duty waiver for purchases of Victorian residential property with a dutiable value of up to $1 million.
For new residential properties, a 50% duty waiver applies. For existing residential properties and vacant residential land, a 25% duty waiver applies.
The applicable waiver is applied to the duty otherwise payable 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.
The waiver can apply to the purchase of an investment property. There is no requirement to live in the property.
The waiver can be applied for more than once.
While a foreign person can obtain the waiver, it does not apply to foreign purchaser additional duty.
To be eligible for this waiver:
- the purchase must be of residential property;
- dutiable value must be $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 i.e. not a gift.
The State Revenue Office will apply the waiver automatically if all eligibility criteria are met based on the information provided in the Digital Duties Form.
For further information, see the State Revenue Office page Land transfer duty waiver for residential property transactions of up to $1 million.
The By Lawyers Conveyancing – Purchase of real property (VIC) Guide has been updated accordingly.