Vic - Stamp Duty Exemption question

Discussion in 'Accounting & Tax' started by Sark, 7th Oct, 2019.

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  1. Sark

    Sark New Member

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    Hello all,

    First home buyer looking to purchase an established property in Victoria for under $600,000.

    I've had some conflicting information which i cant seem to verify one way or another. Assuming all criteria are met for the Stamp Duty Exemption in Vic, do you need to initially pay the stamp duty tax, then apply for refund?

    Cheers.
     
  2. Terry_w

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

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    no i don't think so.

    You can verify this by looking at the duties act - the law itself.
     
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  3. mehrar_84

    mehrar_84 Well-Known Member

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  4. Peter_Tersteeg

    Peter_Tersteeg Mortgage Broker Business Member

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    The stamp duty exception is applied for via your conveyancer, not the broker or lender. We do however process the First Home Owners grant paperwork (but that only applies if you're building).

    The confusion often arises out of the lenders loan documents. These documents will disclose the full stamp duty but an adjustment is made (via your conveyancer) before settlement. I've had to reassure many clients of this. I believe the banks do this because the documents must disclose all potential fees and charges even though they know the first home buyer is exempt on this one.

    Another exception to all this is if you're buying land then building on it. In this case you'd usually pay the full stamp duty when you buy the land. You then build, getting the First Home Owners Grant. After completion you move in and at that point go back to your conveyancer/solicitor and they'll get the stamp duty refunded as you've now got your first home.
     
    Last edited: 7th Oct, 2019
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  5. Sark

    Sark New Member

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    Thanks Peter & others for your advice+