In Victoria, as at July 2020, approximately 200,000 properties change hands every year. Most of these property transactions involve a seller and a buyer, however properties can also be gifted.
Usually, a purchaser of property will be charged stamp duty which is can be quite substantial. Stamp duty is tailored for the value of each property, but roughly speaking, it will be around 5.5% of the value of the property. So if you purchase a property for $700,000, you will need to pay stamp duty of approximately $38,500! This is a substantial sum of money that you need to factor in when making a purchase.
In addition to usual purchases and sales of property, stamp duty will also apply if you’re transferring title of property. Let’s say your transferring the title to a relative. Ordinarily, this will also incur stamp duty.
However, there are some situations which you can apply for, which will give you an exemption from stamp duty. For example, when you transfer property to a spouse or domestic partner, you may be eligible for a stamp duty exemption.
So what are the eligibility criteria?
You can apply for this exemption if you meet the following requirements:
- The property is being transferred between spouses or domestic partners
- The transfer must be for no consideration
- The property must be a residential property
- At least one spouse/partner must live in the property as their principal place of residence continuously for at least a year, with their residency starting within 12 months of settlement
Is my partner a domestic partner?
According to the Duties Act 2000, the definition of a domestic partner is a person in a domestic relationship, this means:
- a registered domestic relationship; or
- a relationship between two persons who are not married to each other but who are living together as a couple on a genuine domestic basis (irrespective of gender).
How do we apply?
If you are eligible, you can apply for this exemption by completing a digital duties form. This document must be lodged at the State Revenue Office before settlement via Duties Online.
Can Wealthsource Conveyancing help?
Yes, we can help you apply for the stamp duty exemption. Completion of all the necessary paperwork in relation to stamp duty is included as part of our entire conveyancing process to assist you reach settlement. Contact us for an obligation-free quote.