Spouse/Domestic partner Transfers of Real Estate
From 1 July 2017, the stamp duty exemption for transfers between spouses/domestic partners will no longer apply to transfers of investment or commercial properties between spouses/domestic partners.
The exemption will still apply for the transfer between spouses/domestic partners of a principal place of residence.
The exemption will still apply for transfers of property (including investment and commercial properties) following a relationship breakdown.
Stamp duty has been abolished for first-home buyers who purchase property valued at or below $600,000 and phased in for properties valued up to $750,000 pursuant to a contract entered into on or after 1 July 2017.
Off-the-plan duty concession
The off-the-plan stamp duty concession has been restricted to properties acquired by owner/occupiers who are eligible for the principal place of residence or first home buyer duty concessions. The concession is no longer be available for residential investment property purchases or commercial property purchases. These changes apply where contracts are entered into on or after 1 July 2017.
FIRST HOME OWNER GRANT (FHOG)
The FHOG has been doubled to $20,000 for new homes purchases valued up to $750,000 in regional Victoria (purchased as primary places of residence). First-home buyers of new homes in metropolitan Melbourne will continue to be eligible to receive $10,000. These changes apply to contracts entered into from 1 July 2017 to 30 June 2020.
From 1 January 2018 vacant residential land tax of 1 per cent of the property’s capital improved value will apply to vacant residential properties in the inner and middle ring of Melbourne.
If property is unoccupied for a period of six months or more in a calendar year then it will be regarded as vacant.
Holiday homes, city properties used for work purposes, property transfers during the year and new residential properties may be exempt.
Transitional arrangements mean that for the 2018 tax year and all properties will be deemed “occupied” for the purpose of this tax for the period January to April 2017 (inclusive).
For more information please contact our friendly and professional team at Peter Speakman & Co on 9822 8611.