Vic Government removing stamp duty exemption between spouses for investors from 1 July

Discussion in 'Legal Issues' started by Meteor, 29th Apr, 2017.

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  1. Meteor

    Meteor Member

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    Just found this media release.

    "The Victorian Budget 2017/18 will remove the stamp duty exemption for certain transfers of property between spouses, closing a loophole that is currently used for tax-minimisation by investors.

    Property transfers between spouses and de facto partners will no longer be exempt from stamp duty from 1 July this year. Exemptions for the principal place of residence and for transfers following a relationship breakdown will remain in place."

    Further info in the media release below:
    Modernising Motor Vehicle And Property Duty Payments
     
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  2. Terry_w

    Terry_w Lawyer, Tax Adviser and Mortgage broker in Sydney Business Member

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    Damn!

    Thanks for posting
     
  3. S0805

    S0805 Well-Known Member

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    well it had to stop one day....given it was the most generous one
     
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  4. Paul@PAS

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

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    So it seems that Victoria will have a exemption similar to that in NSW. They refer to retaining an exemption for the PPOR. I wonder if that may be as restrictive as NSW or broader ? ie In NSW a occupied main residence owned by one spouse can be transferred to 50% TIC or Joint tenancy and be exempt.

    And stamp duty on new cars increases
    And annual land tax valuautions (instead of each two years)
     
  5. KateAshmor

    KateAshmor Victorian Conveyancing Lawyer Business Member

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    Major news for property investors in Victoria, who will have to complete spousal transfers of investment property by 30 June to avoid stamp duty.
     
  6. Greyghost

    Greyghost Well-Known Member

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    Many cases it is Part IVA anyway.
    Yes it can be done, but the accountant should have only done so under specific circumstances . Ie asset protection by shifting assets of Mr (director) into Mrs name. Not simply to create a tax deductible loan
     
  7. .JDM

    .JDM Member

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    Hi, new member here. We are looking at asset protection and I am hoping that we can set up a Trust to move the property into. Will that be hit by CGT and ST in doing so? Is this effected by the changes mentioned in this post?
    Thanks.
     
  8. Terry_w

    Terry_w Lawyer, Tax Adviser and Mortgage broker in Sydney Business Member

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    Yes
    No, this only relates to spouses.

    Get good legal advice otherwise there will be little asset protection if you transfer to a trust.
     
  9. .JDM

    .JDM Member

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    Thanks Terry. Will seek advice to see how we can set it up in the proper manner. In a trust does it matter how the beneficiaries are set up or is it the set up of the trust that is more important? Or is it the same thing?
     
  10. Terry_w

    Terry_w Lawyer, Tax Adviser and Mortgage broker in Sydney Business Member

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    Not sure what you mean JDM. There are different types of discretionary trusts. The best asset protection will come from one with an open class of beneficiaries and no default beneficiaries.

    Most important is the transfer itself and how it is done and funded.
     
  11. .JDM

    .JDM Member

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    Terry, will ask that question. Thanks. Should have come to this forum long time ago. Well better later than never!
     
  12. Rolf Latham

    Rolf Latham Inciteful (sic) Staff Member Business Plus Member

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    that would be the same State Gov that was supposed to have used GST revenue to replace all Stamps ?????? or have I got that way wrong ?

    ta
    rolf
     
  13. Paul@PAS

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

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    In 1999 many states arguesd GST revenue MAY replace state taxes like FID and BDT (look it up if you dont recongise those terms) as well as duities. Clearly it wasnt fact based and NSW as an example repealec mortgage duty years after it was proposed...NOT stamp duty.

    Transfer duty was never a promised change - Intended yes but never a promise
     

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