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FHOG/Stamp Duty Reduction Question

Discussion in 'Property Finance' started by PorkBellyLover, 6th Sep, 2016.

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  1. PorkBellyLover

    PorkBellyLover Active Member

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    Hi All,

    I have a few questions around First Home Owner Grant and Stamp Duty Reduction.

    I bought my PPOR last December, so it hasn't been a full year yet, but due to work relocation reason, need to move to a different area, so I'm planning to turn my PPOR into an IP as I will return in the future.

    Could anyone reference me a reading on what are the conditions for FHOG/Stamp Duty Reduction as I heard from a friend that we have to live in for at least a year before allowed to turn it into an IP to avoid penalties/taxes? Is this the case? I tried to research online and through this forum, but couldn't find anything.

    Thank you in advance!
     
  2. Peter_Tersteeg

    Peter_Tersteeg Finance broker and strategist Business Member

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    The rules can vary from one state to another. Look at the Office of State Revenue relevant to your state for more information:
    www.osr.nsw.gov.au
    www.osr.qld.gov.au
    www.sro.vic.gov.au
    www.finance.wa.gov.au
    www.sro.tas.gov.au

    Generally you're expected to live in the property for 12 months. Anecdotally I have heard of instances where people had to move out early. They contacted the relevant OSR and had to repay the money. When they later bought a new home, they were able to claim the benefits again.
     
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  3. thatbum

    thatbum Well-Known Member

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    Is it generally 12 months? Its 6 months in WA, and I thought in some other states too.
     
  4. PorkBellyLover

    PorkBellyLover Active Member

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    Thanks @Peter_Tersteeg

    I was looking in ATO's website and now am wondering why Google didn't show SRO list when I searched.
     
  5. dabbler

    dabbler Well-Known Member

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    Keep it as your main residence for a year if that is what is required and your so close already.....or get on the phone so you can get advice direct.
     
  6. Peter_Tersteeg

    Peter_Tersteeg Finance broker and strategist Business Member

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    Is that for the FHOG or the stamp duty concession? Needless to say it is confusing and there's states where the FHOG is 6 months and the stamp duty concessions are 12 months, which is why it's best to track down the info directly.

    WA FHOG is 6 months continuous residence. You need to move in within 12 months acquiring the property. It's been so long since I did anything first home related in WA I can't even remember if there's a stamp duty concession.

    @PorkBellyLover one interesting think I noticed on the WA site is the ability to apply to vary the residence requirements. It would appear they're understanding if you've got a good reason to move (at least in WA).
     
  7. PorkBellyLover

    PorkBellyLover Active Member

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    I'm based in Melb and I have to move within a couple weeks, but I still have a quarter to go. Thanks guys, I'll consider my options.

    Not trying to be shifty as I have to change my postal address after moving out, but how do they track my residency? Is it through tax alone?
     
  8. Terry_w

    Terry_w Solicitor, Finance Broker, CTA Business Member

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    Audit - you will need to prove where you lived.
     
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