Stamp Duty Concessions

Stamp Duty Concession

Stamp duty Concessions (also known as Transfer Duty) are available to eligible buyers who elect to live in a property (Home Concessions), as opposed to purchasing a property as an investment.  The Office of State Revenue has specific requirements around eligibility for Home Concessions and remaining eligible for Home Concessions after settlement.

To claim a Home Concession, the Buyer must:

  • Move into the home within 1 year of settlement and live there continuously on a daily basis for at least 1 year after they move in;
  • Not dispose (sell, transfer, lease or otherwise grant exclusive possession) of all or part of the property before the Buyer moves in. This includes renting out parts of the home, such as individual rooms; and
  • Not dispose of all or part of the property within 1 year after the buyer has moved in.

Important things to note:

  1. Existing tenants or previous owners: Existing tenants must move out of the home when their lease expires or within 6 months of settlement, whichever is earlier. Sellers who remain in the home after settlement must also move out within 6 months of settlement.
  2. Demolishing: A buyer will not be eligible if they demolish the existing house without having first occupied the property for a minimum of 1 year.

Unpaid tax interest and penalty tax can apply where a buyer fails to meet the above requirements.

If a buyer claims a Home Concession at settlement and becomes ineligible at a later date, the buyer should contact their solicitor for a review of the transfer duty payable and must notify the Office of State Revenue of the change in circumstances.

Taylah Bruce

Taylah Bruce DBL Solicitors