Pensioner duty exemption or concession
Eligible pensioners in Victoria are entitled to a once only exemption from stamp duty when they buy a house valued up to $330,000 or less or a stamp duty concession when they buy a house valued from $330,001 to $750,000
To be eligible for the pensioner duty exemption or concession you will have to meet the following criteria:
–>Hold a relevant concession card at the settlement date;
–>Have never received the pensioner concession or exemption in the Victoria in the past;
–>Buy the property for market value (it can be an already established house, a house purchased off the plan or a house that is built within three (3) years of purchasing vacant land)***
–>Intend to live in the in the property as your principal place of residence (PPR Concession)
*** if you purchase vacant land and enter into a contract with a builder within 3 years you maybe liable to pay full stamp duty and then apply for a refund within 5 years of the date the stamp duty was paid.
Pensioner duty exemption or concession scenarios
If eligible pensioners are purchasing property jointly (i.e. as husband and wife) as their principle place of residence (PPR) for $640,000 they are both entitled to a stamp duty exemption as their fractional interest of $320,000 each in the property does not exceed the ceiling of $330,000.
If eligible pensioners are purchasing property jointly (i.e. as husband and wife) as their principle place of residence (PPR) for $800,000 they are both entitled to a stamp duty concession as opposed to a full stamp duty exemption as their fractional interest of $400,000 each in the property exceeds the ceiling of $330,000.