By: James Tan
On 17 May 2012, the State Government introduced the Treasury (Cost of Living) and Other Legislation Amendment Bill 2012 that reinstates the Transfer Duty Home Concession. As of 1 July 2012, the Transfer Duty Concession that was previously available for the transfer, or agreement for the transfer, of a principal place of residence will be reinstated. This concession will apply to home buyers who are purchasing a new home, which need not be their first home purchase.
As a refresher, home buyers will need to prove that they are individuals and not trustees, and that the residence must be occupied as the principal place of residence within one year of the transfer and the occupation as principal place of residence must continue for at least one year from the time it commences.
The applicable concessional transfer duty rate is $1 for each $100 or part of $100 for the first $350,000 of the consideration or value of the home.
Important Transitional Provisions
This concession will apply to home purchases that are liable for transfer duty that purely arise on or after 1 July 2012. It will be important to be aware of these provisions when providing advice to clients.
In particular, the transfer duty laws that applied prior to 1 July 2012 will apply to agreements made on or after 1 July 2012 under the following circumstances:
- The transfer or agreement replaces a transfer or an agreement that was made prior to 1 July 2012; or
- An agreement for an option to purchase the land was entered into prior to 1 July 2012, where the option would be exercised on or after 1 July 2012; or
- Another arrangement was made before 1 July 2012 for the sole or main purpose of which was to defer the making of the transfer or agreement until 1 July 2012 in order to benefit from this new concession.