FHB Stamp Duty Exemption - vendors want to lease until new property purchased

Discussion in 'Accounting & Tax' started by montoya, 13th Feb, 2021.

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  1. montoya

    montoya Well-Known Member

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    My partner is looking at putting in an offer and is currently eligible for FHB stamp duty exemption.


    The vendors would like to her to lease the property back to them whilst they purchase their upgrade (approx 3-6 months)

    Will this affect the stamp duty exemption?
     
  2. unicorntears

    unicorntears Well-Known Member

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    Terry_w likes this.
  3. The Artisan

    The Artisan Well-Known Member

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    I'm just going through this at the moment. I purchased a PPOR with tenants in place until November, I was told tenants need to be out within 6 months of settlement and I need to move in within 12 months however you can't just remove tenants.
    I found this case from 2015 when the commissioner of state revenue reassessed their liability for stamp duty and decided they weren't eligible for a concession. Di Sipio won in the court of appeal as the lease was existing and not between the new buyer and tenant.
    Much easier to ask the vendors to move along if possible.

    'In light of the Court’s decision in Di Sipio, home buyers can receive the above concessions even if a tenant under an existing lease does not vacate the property within six months from the settlement date. The focus of a buyer’s eligibility to receive a home concession is their occupation of the home within one year of the settlement date.'

    Case Update: Duty Concessions for Home Buyers | Ramsden Lawyers
     
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  4. montoya

    montoya Well-Known Member

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    Sydney
    Thank you for that. Unfortunately the place went for above our max price at auction, the inner west (Sydney) is cray cray at the moment. Hoping to get in soon as prices seem to be running away again!