A window to save on stamp duty in Melbourne, Australia, will close at the end of June


Every week Mansion Global asks a tax question to real estate lawyers. Here’s this week’s question.

Q. I am planning to buy an apartment in Melbourne, Australia. Are there any tax benefits I should look out for?

A. Time is running out to get a discount on the transfer tax, or stamp duty when buying a new apartment in Melbourne†

Currently, buyers are eligible for a 50% stamp duty concession on new homes valued up to A$1 million (US$718,175) in the coastal capital, according to a statement from Melbourne city officials.

In addition, purchasers of units in new developments that have been on the market for a year or more will receive a 100% stamp duty exemption.

“Buyers have an even better chance of buying a home here and we welcome them with open arms,” Mayor Sally Capp said in a statement earlier this year.

Homes priced over A$1 million are not eligible. In addition, the new house must have a occupancy permit – certifying that the construction of the property complies with local regulations – issued at least 12 months before the contract is signed.

The purchase can be used as a primary residence or as an investment, depending on the city. And although foreign buyers are also eligible for the stamp duty exemption, they are still liable for the foreign buyers additional tax of 8%.

However, these tax breaks expire on June 30, meaning buyers have a slim chance of taking advantage of the savings. Only units that sign a contract before the end of the month are eligible for the discount.

Email your questions to [email protected] Check weekly for answers mansionglobal.com†

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