Investment stamp duty return?

Discussion in 'Accounting & Tax' started by Puppy Becky, 27th Nov, 2016.

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  1. Puppy Becky

    Puppy Becky New Member

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    Hi everyone,
    It's my first time to post in this forum. I will appreciate if you give me some advices.
    I bought an IP in Perth area three years ago, paid investiment stamp duty about 14K.
    I live with friends somewhere else close work.
    Recently I'm thinking move into the IP, is it possible get the investment stamp duty back if I make this IP as my residence?

    PS. for live-in, this house won't need any stamp duty cuz it's under 430k in WA
     
    Puppy Becky, 27th Nov, 2016
    #1
  2. wylie

    wylie Moderator Staff Member

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    Firstly, welcome to the forum.

    Removed my rambling post because Ross Forrester below said it in three words. Gee I need to learn to edit myself :D:p.
     
    Last edited: 27th Nov, 2016
    wylie, 27th Nov, 2016
    #2
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  3. Ross Forrester

    Ross Forrester Well-Known Member

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    No you cannot
     
    Ross Forrester, 27th Nov, 2016
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  4. Paul@PAS

    Paul@PAS Tax, Accounting + SMSF + All things Property Tax Business Plus Member

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    Ross summed it up well.

    Stamp duty is incurred on a change of ownership not it's use. Land tax may apply when a occupied residence (exempt use) becomes an investment property and the value of land owned exceeds the relevant threshold. Land tax is a state tax.
     
    Paul@PAS, 28th Nov, 2016
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  5. wylie

    wylie Moderator Staff Member

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    Sounds like Puppy Becky could have moved into it as a main residence immediately after settlement and avoided paying stamp duty, but put tenants into it for the first three years, and therefore paid stamp duty at an investment property rate (as it was).

    Sound like she is now asking can she move into it as a main residence and get the stamp duty refunded.

    That decision three years ago cannot be undone.

    I guess the upside is that once it becomes a main residence it isn't counted in any land tax calculations. I'm guessing she needs to advise the appropriate authority of this so they know.
     
    Last edited: 28th Nov, 2016
    wylie, 28th Nov, 2016
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  6. Jess Peletier

    Jess Peletier Mortgage Broker & Finance Strategy, Aus Wide! Business Member

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    The reason for this is to buy as a first home buyer, you need to live in it within the first 12 months for at least 6 months.

    Your timeframe doesn't fit with that unfortunately. But - that does mean that you can still use the FHBG for a new purchase if you don't move in to the first one.
     
    Jess Peletier, 28th Nov, 2016
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  7. Paul@PAS

    Paul@PAS Tax, Accounting + SMSF + All things Property Tax Business Plus Member

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    The 50% scheme has a 12 month residence requirement in Vic and this highlights inconsistencies in states. This must commence within 12 months of the acquisition. If the occupancy ceases early the benefit given must be repaid. In Vic you can reassess duty within 5 years and get a refund if use changes. Seems to be common as their website refers to high volume of applications.
     
    Paul@PAS, 28th Nov, 2016
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  8. thatbum

    thatbum Well-Known Member

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    Exactly this. @Puppy Becky you didn't comply with the requirements of the grant, and you can't turn back time unfortunately.

    Answer might be different if you were still in the first 12 month period after settlement.
     
    thatbum, 28th Nov, 2016
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  9. Jess Peletier

    Jess Peletier Mortgage Broker & Finance Strategy, Aus Wide! Business Member

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    I also believe that other states don't allow a FHOG if you've purchased any property previously - in WA, if your first purchase is an IP but no PPOR it's fine to apply for the FHOG even though you do own property already.
     
    Jess Peletier, 28th Nov, 2016
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  10. Paul@PAS

    Paul@PAS Tax, Accounting + SMSF + All things Property Tax Business Plus Member

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    Interesting.
     
    Paul@PAS, 28th Nov, 2016
    #10