VIC - sales tax 50% concession: what if I can't finish build in time?

I'm looking to buy a property, demolish existing buildings, subdivide and build two houses. One will be my PPOR and one will be IP.

On my reading I should be entitled to the 50% sales tax concession because I'm a first home buyer and intend to make the address my place of residence within 12 months of settlement. But I know there is a good chance that I can't complete the entire process in that time because planning will throw up delays and the build won't necessarily run to schedule.

Is the sales tax concession based on a bright line yes/no around whether I move into the dwelling within 12 months of settlement? Or is there some provision for the fact that this will definitely be my PPOR and I just ran into delays?

 

Sales tax was dropped with the introduction of GST close to 20 years ago.

 

Sorry, stamp duty. Question remains as above (it's a $15k difference for my end result).

 

Couldn't you buy the property, move in for a few months whilst you get planning through, and then demolish and subdivide afterwards?

 

As above. I'd think the sro would only give you a concession in the stamp duty for half the property if you only moved into half, after the subdivision and build is completed. Could be wrong though. Have you taken advice on this?

 

I haven't taken advice because it doesn't affect the viability of my plans, was just trying to understand the correct position. If I buy the property I will just declare my intention to make it my PPOR (because this is true) and if I fail to achieve that I suppose I will owe an extra $15k down the track.

 

But if you don't move into this property but instead a different one, the subdivided block, I'd say they would chase you for the full amount as an investment rather than ppor, which is actually slightly more. It's worth getting specific advice, cause you'd also need to know what how the cgt works on the investment property.

It's not like the sro won't know, you have to get them involved when you subdivide.

 

Apply for a first-home buyer duty reduction | State Revenue Office

The declaration is clear. You have 12 months from the date of land transfer. At that time IF you are eligible you can apply for a 50% refund of the land transfer duty paid. So the property (one of them) must be completed and occupied within that period. Then you must reside there for at least 12 months.

Moving into the property prior to demo would require you to defer construction until after 12 months