As of today, 27 June 2017, the following changes affecting property transactions have been legislated:
- Stamp duty exemptions for first homeowners who enter into a contract of sale from 1 July 2017 for property at or below $600,000 with a concession to be applied on a sliding scale if the property is valued above $600,000 and below $750,000.
- First home owner grant (FHOG) has increased to $20,000 for contracts of sale entered into between 1 July 2017 and 30 June 2020 (inclusive) for new homes built in certain regional council areas and valued up to $750,000. First home buyers of new homes in metropolitan Melbourne and Cardinia Shire Council will continue to be eligible for the $10,000 FHOG. Purchasers must reside in the property for a continuous period of 12 months commencing within the first 12 months to be eligible for the above duty exemption/concession and/or grant.
- From 1 July 2017 the exemption from duty for transfers between spouses/domestic partners will only apply to a transfer of principal places of residence (where the transferee has resided in the property for at least 12 months) and transfers of any property following a relationship breakdown.
- From 1 July 2017, the off-the-plan duty concession will only apply to purchasers who occupy the property and are eligible for the principal place of residence or first home buyer duty concessions.
- From 1 July 2018, properties unoccupied for six months in a calendar year in the inner and middle ring of Melbourne will be subject to a vacant residential land tax of 1 percent of the property’s capital improved value. Exemptions include holiday homes, city properties used for work purposes, property transfers during the year and new residential properties.
To speak with our property team, please call us today on (03) 8508 7800.