A little publicised opportunity exists for people who wish to acquire residential property, with a value of $1 million or less in the Local Government Area of the City of Melbourne. The opportunity relates to the halving or complete waiving of stamp duty.
Here are the details:-
WHAT IS THE OPPORTUNITY
The amount of stamp duty payable will be:-
- halved if you enter into a contract for sale between 1st July, 2021 and 30th June, 2022 to purchase a new residential property;
- waived if you enter into a contract for sale between 21st May, 2021 and 30th June, 2022 to purchase a new residential property which has remained unsold for 12 months or more since the completion of its construction.
If other concessions apply (such as First Home Owner concession), those concessions are applied first, then the 50% concession is applied to the remainder.
WHAT TYPE OF PROPERTY CAN BE ACQUIRED
The property must:-
- be a completed, new, residential property, not having been sold, occupied or leased since the occupancy permit was issued;
- have a dutiable value of $1 million or less; and
- be a bona fide purchase (not a gift).
It may be an investment property or your principal place of residence.
What suburbs fall into the Local Government Area of the City of Melbourne?
WHAT SUBURBS FALL INTO THE LOCAL GOVERNMENT AREA OF THE CITY OF MELBOURNE
The following suburbs are deemed to form part of the LGA of the City of Melbourne
Carlton, Docklands, East Melbourne, Flemington, Kensington, Melbourne, North Melbourne, Parkville, Port Melbourne, Southbank, South Yarra (only that part which is west of Punt Road) and West Melbourne.
OTHER POINTS OF INTEREST
- Settlement of the purchase of the property does not need to have been completed prior to 30th June, 2022.
- If the purchaser is deemed to be a foreign purchaser, the concession/exemption is still available in relation to the land transfer duty, but it does not apply to the surcharge duty.
- The exemption/concession is available for each eligible property purchased, even if a purchaser buys more than one such property.
If you have any questions about this subject matter, please feel free to speak with us on (03) 9898 6666.