Stamp Duty Concessions & Exemptions

You may already be aware that the recent State Budget made changes to the Duty payable on property in Victoria.

The general duty rate scale (and for pensioners and persons buying a principal place of residence) has decreased by approximately 10% and the new thresholds are:

Dutiable Value	Rate of Duty
Not more than $25,000.00	1.4% of the Value
More than $25,000.00 but not more than $130,000.00	$350.00 + 2.4% of that part of the Value that exceeds $25,000.00
More than $130,000.00 but not more than $960,0000.00	$2,870.00 + 6% of that part of the Value that exceeds $130,000.00
More than $960,000.00	5.5% of the Value

Principal Place of Residence

For Contracts entered into on or after 6 May 2008, home buyers paying $550,000.00 or less will benefit significantly from these savings. The new thresholds are:

Dutiable Value	Rate of Duty
More than $130,000.00 but not more than $440,000.00	$2,870.00 + 5% of that part of the Value that exceeds $130,000.00
More than $440,000.00 but not more than $550,000.00	$18,370.00 + 6% of that part of the Value that exceeds $440,000.00

Pensioners

For Contracts entered into on or after 6 May 2008, qualifying pensioners who are buying a home for $330,000.00 or less will benefit from a full exemption from stamp duty and qualifying pensioners who are buying a home for between $330,000.00 and $440,000.00 will benefit from a concession on stamp duty.

First Home Bonus

Prior to 6 May 2008, home buyers who qualified for the First Home Bonus had to choose between the First Home Bonus and the Principal Place of Residence Concession. Generally, the First Home Bonus was worth more.

For Contracts entered into on or after 6 May 2008, home buyers who qualify for the First Home Bonus will qualify for the Principal Place of Residence Concession also.

A further payment of $3,000.00 is now available to home buyers purchasing a “new” home in regional Victoria where the price is not more than $500,000.00. This is in addition to the $7,000.00 FHOG and $5,000.00 FHB.

Remember feel free to call me anytime if you have any questions in relation to these changes or if you require clarification.