The State Revenue Office (SRO) is particularly talented in raising funds for the State Government, however it also grants stamp duty concessions to those who are eligible.
If you purchase an off-the-plan property, and building works are yet to commence or conclude, you may be eligible for the Off-the-Plan Concession.
There are a number of requirements that will determine your eligibility:
- The Contract of Sale must be for the sale of land and the building yet to be built on the land.
- You must be eligible for either the first home buyer concession or the principal place of residence concession except for the “dutiable value” aspect of those concessions.
The residence requirement:
Fairly recently, the legislation was changed so that a purchaser must use the property as their principal place of residence within 12 months for a continuous period of 12 months from settlement.
The reason the off the plan concession is so attractive to purchasers is that is reduces the dutiable value considerably. It is often seen as the market value less the construction costs which the vendor will provide prior to settlement in order for the purchasers representative to calculate the applicable duty.
The key point is when the Contract of Sale was signed, so even if you purchase property by way of a nomination, you may still be entitled to the off the plan concession provided that you use the property as your principal place of residence within 12 months of settlement.
There are two methods for calculating the off the plan concession which the vendor will determine prior to settlement. This will be either the fixed percentage method, or the alternative method, both of which use information only available to the vendor.
In order to calculate the concession, the transferor or vendor must:
- Determine the percentage of construction completed as at the date of the contract of sale.
- Select a method of calculating the concession and identify the relevant figures.
- Provide all these details to the SRO when they complete the Digital Duties Form.
The off the plan concession is applied for prior to settlement through your lawyer or conveyancer and is calculated through the duties online forms and claimed via PEXA workspace where settlement occurs electronically.
For more information or assistance in applying for the Off the Plan Concession, please contact our property team at email@example.com
Disclaimer: This publication contains comments of a general and introductory nature only and is provided as an information service. It is not intended to be relied upon as, nor is it a substitute for specific professional legal advice. You should always speak to us and obtain legal advice before taking any action relating to matters raised in this publication.