The Victorian government has introduced a temporary land transfer duty concession (previously known as stamp duty) or exemption for new residential properties in the City of Melbourne with a dutiable value of up to $1 million. A concession or exemption ends for any contracts entered into after 30 June 2022.
What concession or exemption is available?
The following concession or exemption is available for new residential properties:
- 50% duty concession for contracts signed between 1 July 2021 to 30 June 2022. This is applied after any first home buyer duty concession and principal place of residence concession (including off-the-plan and pensioner concessions) have been applied.
- Full duty exemption for contracts signed from 21 May 2021 to 30 June 2022 for new residential properties that have remained unsold for 12 months or more since construction completion.
Properties can be bought as a principal place of residence or for investment purposes (that is, you do not have to live in the property to be eligible) by all purchasers, including foreign purchasers, provided they meet the eligibility criteria.
The concession or exemption can be applied to more than one property, provided each purchase meets the eligibility criteria.
Eligibility criteria
For the transaction to be eligible for the concession or exemption, the following criteria must be met
- An occupancy permit must be issued at least 12 months before the contract was entered in to.
- Applies only to properties purchased in suburbs in the City of Melbourne.
- Must be for a new residential home or have a new home affixed to the land;
- The property must have a dutiable value of $1 million or less;
- The transaction must be a bona fide purchase. It does not include property transferred as a gift;
- Applies to fractional transfers, as long as the unencumbered value of the whole property is $1 million or less.
- Applies to transactions under Chapter 2 of the Duties Act 2000 as long as the land can be solely or primarily lawfully used for residential purposes.
What suburbs are in the City of Melbourne?
The suburbs the temporary stamp duty concession or exemption applies to are:
- Carlton;
- Docklands;
- East Melbourne;
- Kensington and Flemington;
- North Melbourne;
- Parkville;
- Port Melbourne;
- Southbank;
- South Yarra – West;
- West Melbourne; and
- Central City Melbourne.
What exclusions apply to the temporary stamp duty concession or exemption?
The concession or exemption does not apply to:
- any established homes, homes previously sold, occupied as principal places or residence or short-term accommodation;
- any residential property with a dutiable value over $1 million;
- a transfer that obtains the commercial and industrial land concession (purchase of residential property in regional Victoria to be converted and used for commercial or industrial purposes);
- foreign purchaser’s additional duty component that is payable on the transfer;
- purchases of vacant residential land (i.e. house built after settlement)
- transactions under Chapter 3 of the Duties Act 2000 where land holdings of the landholder include a residential property with a value of $1 million or less.
How do I apply?
We will apply for any concession or exemption you are entitled to when lodging the Duties Online Form with the State Revenue Office on your behalf. The State Revenue Office will then automatically apply the concession or exemption if the criteria are met.
Get help from a property lawyer
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Contact David Davis Lawyers
Phone: 03 9014 1299
Email: admin@ddavis.com.au
For more detail on this temporary scheme, download the State Revenue Office Victoria information sheet, “Land transfer duty concession or exemption for City of Melbourne residential property transactions”.