With July 1 approaching we have been looking at the proposed stamp duty changes.
Off-the-plan concession – to be taken away from Investors
Under the change proposed for July 1 2017, the off-the-plan stamp duty concession will now be available only to buyers who occupy the property as their principal place of residence.
Currently a concession applies to off-plan purchases whereby the dutiable value is the value of the land and any building works undertaken at the time of the contract. As of July 1, 2017 an investor will have to pay stamp duty on the full contract price of the purchase.
For example on a $435,000 apartment, the current dutiable value for all purchasers currently stands at $435,000 less any value of building works not undertaken at the time of the contract (the purchase is “off plan”), this could be $435,000 less the incomplete building works. Therefore the dutiable value could be just 25% of the purchase price ie $108,750.
| Property – Price | Dutiable Value
Current |
Dutiable Value
From July 1 |
| $ 435,000 | $108,750 | $435,000 |
The Stamp duty on the lower dutiable value is $2,360 and the higher is $21,170
This applies only to Investors; owner occupiers from July 1 still pay the lower of the two stamp duty amounts.
First home buyers
Under the change proposed for July 1 2017, first home buyers purchasing either new or existing properties of not more than $600,000 will pay no stamp duty. For purchases between $600,001 and $750,000 the discount will be tapered.
For the above purchase of a unit of $435,000 the stamp duty applicable will be Nil.
Recent Comments