The Act introducing the following budget amendments received Royal Assent on 16 June 2021.
Duties Act 2000
– Stamp duty (Land Transfer Duty) on high-value property transactions with a dutiable value above $2 million will increase to $110,000 plus 6.5% of the dutiable value exceeding $2 million. This will apply to contracts entered into on or after 1 July 2021.
– Temporary stamp duty (Land Transfer Duty) concessions will apply to purchases of new residential properties in the City of Melbourne with a dutiable value up to $1 million.
– Temporary increase to the threshold to $1 million for the off-the-plan Land Transfer Duty concession for all home buyers for contracts that are entered into between 1 July 2021 and 30 June 2023.
Land Tax Act 2005
– The land tax threshold will increase from $250,000 to $300,000 from the 2022 land tax (calendar) year. There is no change to the land tax threshold for land held on trust which remains at $25,000.
– Land tax payable on high-value landholdings from the 2022 land tax (calendar) year will increase:
o on taxable landholdings exceeding $1.8 million to rise by 0.25%
o on taxable landholdings exceeding $3 million to rise by 0.30%.
– Vacant residential land tax exemption for new developments has been extended to apply for up to two tax years from the 2022 land tax (calendar) year.
First Home Owner Grant and Home Buyer Schemes Act 2000
– Changes to enable the SRO to administer declared home buyer schemes including the Victorian Homebuyer Fund announced in the State Budget. The Fund is a shared equity scheme where the State Government will contribute to the purchase price of a successful applicant’s property purchase in return for a proportionate interest in the property.
For assistance with property and conveyancing matters contact Fleur Craig of Armour-Craig Legal on (03) 5636 4986 or fleur@armourcraiglegal.com.au.