Enforcement of Transfer Duty Concession (NSW)

I am a FHB looking to buy my first IP and am likely going to live in it for the first 6 months in order to take advantage of transfer duty concessions for first home buyers in NSW. I did call OSR twice to try and understand how they validate that the FHB is infact living in the property but they couldn't tell me anything?

Does anybody know how OSR is ensuring FHB's are compliant beyond changing primary addresses on drivers license and utility bills and stuff?

 

Are you in fact going to live in it? Or asking people how to lie to osr?

 

I am going to live in it and it will be my primary residence although I will still be spending 2-3 nights per week at my parents place which is closer to work. I just want to know what to expect.

 

They audi a certain percentage and do this both covertly and overtly. They may ask the taxpayer to prove they lived there.

 

How would an owner occupier prove that they lived there for the prescribed 6 months? Beyond changing your drivers license address and utility bills?

 

Evidence from 3rd parties and yourself

 

If I take up the transfer duty exemption (NSW) on my PPOR but subsequently decide not to move into it but rent it out as an IP are there any additional costs or implications to paying the stamp duty a year after settlement when I have a clearer picture of my circumstances?

I have the money for the stamp duty and would park it in a term deposit until I know if I can fulfil the occupancy requirement of the transfer duty exemption.

 

I hear that Aust Post Cartier's a few off theirs. I know that I'd much prefer the Audi.

 

Nobody?

 

I would be wary of living in two places. The rules require that for the 6 months that it is your PRINCIPAL place of residence and not merely a home. Many people fail due to this requirement. You shouldnt really maintain a bedroom at your parents as this could be a sign of a concern. That may still be your principal place where your reside and live eg meals. Typically they can ask for copies of utilities and other evidence you are maintaining a home. An address change is really not something they accept blindly. Anyone can change an address.

OSR use a variety of data. For example toll records could conflict with your assertion and indicate you are still living where you formerly lived. No electricity, water and other consumption (or little of it). One of the best way to demonstrate principal place of residence is moving all your possessions in. Get some food deliveries there. Having photos and signs of living there. Have a house warming party. Instagram, facebook etc.

This same view also applies to the CGT main residence exemption.

 

I would check out the case study found on Revenue NSW website (I thought they changed from OSR a while back?).

Compliance

But I find it really interesting, it seems like they pull a bunch of third party data, but they won't tell you what and how. Based on this data they may make an assessment on whether they believe whether you "treat the property as his principal place of residence."

The case study is interesting as they say they may use things like if you regularly withdraw cash from near your parents place and are not there often you may be penalised.

2 to 3 days feels a bit pushing it to be honest, especially if you have a designated room/bed?. Maybe if its more closer to 2, and you have a few life events there similar to what paul-pfi.48 says above, bus tickets or Opal card history of going home often? All of it may fair better, but end of the day, interestingly it sounds like its at RevenueNSW assessment.