In Victoria, there may be exemptions from stamp duty for spousal property transfers of a principal place of residence (PPR) under certain circumstances.
What is the principal place of residence (PPR)?
A principal place of residence (PPR) refers to the main or primary residence of an individual or family. It is typically where the person or family lives most of the time, and it is considered to be their permanent home.
In the context of real estate and property transfers, a PPR can be used to determine eligibility for certain exemptions or concessions, such as exemptions from stamp duty or capital gains tax.
It’s important to note that the definition of PPR can vary depending on the jurisdiction and the specific laws or regulations that apply. For example, in Victoria, Australia, a PPR is defined in the Duties Act 2000 (Vic) as a place of residence that is occupied by the person as their only or main place of residence.
It’s also worth noting that a property can only be considered as a PPR if it is occupied and is not used for any income-producing purposes.
Property transferred pursuant to a breakdown of relationship
If a property is transferred between spouses as a result of a divorce or separation, and the property is the PPR of one or both of the spouses, the transfer may be eligible for a full or partial exemption from stamp duty under the Duties Act 2000 (Vic). The eligibility for the exemption and the amount of the exemption will depend on the individual circumstances of the case.
When there is a breakdown of a relationship in Victoria, the transfer of property between spouses is governed by the Family Law Act 1975 (Cth). This act provides for the court to make orders for the transfer of property between spouses, either during the marriage or upon divorce or separation. These orders can include the transfer of ownership of real property, such as a house or land, as well as the transfer of personal property, such as furniture or vehicles.
The court will take into account a range of factors when making a property transfer order, including the financial and non-financial contributions of each spouse to the acquisition, conservation and improvement of the property, and the future needs of each spouse.
It’s important to note that these exemptions are subject to specific conditions and criteria, and you should check with the relevant government agency, in this case, the State Revenue Office, to confirm that your transfer qualifies for an exemption.
It’s also worth noting that the duty rates and exemptions can change over time and it’s important to verify the current regulations and rates with the relevant authorities before completing the transfer.
Transfer of investment property between spouses
The transfer of an investment property between spouses may not be exempt from stamp duty.
Generally, the transfer of an investment property is subject to stamp duty under the Duties Act 2000 (Vic), regardless of whether the transfer is between spouses or not. The stamp duty will be calculated based on the value of the property at the time of transfer and the duty rate that applies.
However, if the transfer of the investment property is made as a result of a court order for the division of property in the case of divorce or separation, the transfer may be eligible for a full or partial exemption from stamp duty, under certain conditions and criteria.
Contact our experienced property lawyers to discuss your spousal property transfer. We will prepare the legal documents, while liaising with your financier to ensure that this is a stress free transaction for you.
Obtaining the right advice is crucial, as spousal property transfers can be technical and if not lodged correctly can become a very expensive process.
Need assistance with your spousal property transfer? Contact our team on (03) 8590 8370 to obtain legal advice from our expert property lawyers and conveyancers. We can assist you with your spousal property transfer.
This update does not constitute legal advice and should not be relied upon as such. It is intended only to provide a summary and general overview on matters of interest and it is not intended to be comprehensive. You should seek legal or other professional advice before acting or relying on any of the content.