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The
Victorian Government has recently made available a duty concession for
purchasers intending to use the property as their principal place of
residence. This tax relief is offered to eligible purchasers who are first
home owners as well as those who are purchasing their second or subsequent
home.
Who is an eligible purchaser?
To be eligible for the concession the purchaser must meet the following
criteria:
· The value of the property must be between
$115,000 and $500,000;
· The contract of sale must have been
entered into on or after 1 January 2007;
· The property must be intended to be
occupied by one of the purchasers for a continuous period of 12 months
commencing within a 12 month period from the date of possession.
What is the concession?
The amount of relief available varies depending on the value of the
property, ie:
· Between $115,000 and less than $400,000
the reduction is up to $2,850 on a sliding scale
· $400,000 but not more than $500,000 the
maximum of $2,850 is available.
What must the Eligible Purchaser do to obtain
the Concession?
If the purchaser is entitled to another exemption such as the Pensioner
exemption or the First Home Owner exemption the State Revenue Office will
give the PPR concession automatically. Purchasers will be eligible to
obtain both if the separate criteria are met.
Purchasers are NOT eligible to obtain BOTH the First Home Bonus and the PPR
Concession. However, purchasers ought opt for the former as the amount
allowed is greater than the maximum $2,850 for the PPR Concession. If the
First Home Bonus is sought no additional form is required to be completed.
In all other instances, Purchasers wanting to obtain the benefit of the PPR
concession must complete a declaration (Form 53) and submit this to the
State Revenue Office.
If purchasers think they may be eligible for the new concession, they should
check their eligibility with their adviser as soon as possible to ensure
that they do not miss out.
Please do not hesitate to contact Katrina Nichols of our conveyancing
department should you require any further clarification of these matters.
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