Victorian Stamp Duty Concession from 1 July - Only if PPR with no monetary consideration

Hi Guys

Just spoke with the state revenue office and asked if their is still stamp duty concession if transfer title between spouses as I heard from 1 July 2017 the rules have changed.
Their response was: "Only if it is for a PPR with no monetary consideration"
I asked them what does "with no monetary consideration" meant, they advised me they could not say any more than that and I needed to read section 43-3 of the duties act if I had any further questions.

Can anyone tell me in layman's language what "with no monetary consideration" means?

Thanks

 

The law does not say 'monetary consideration' but just 'consideration'.
s43 Duties Act VIC
DUTIES ACT 2000 - SECT 43 Marriage and domestic relationships—transfer of principal place of residence

Consideration is defined under s32 as:
"consideration" means the amount of a monetary consideration or the value of a non-monetary consideration;
DUTIES ACT 2000 - SECT 32A Definitions

 

Thanks Terry - so based on that, if spouse A were to take a loan out to acquire the PPR (and transfer name of time) from spouse B, would it be subject to stamp duty?

 

That depends.

If the transfer is done for not consideration then no duty.
But the interest would not be deductible.

If A is borrowing to pay out B there would be duty and the interest may be deductible.

 

I consider that consideration to this important issue needs consideration.,...

The OSR Vic have found a way to prevent misuse of the duty concession = anti-avoidance. Seems harsh but then if was very generous v's other states.

In NSW the concession remains subject to the property being occupied at the time of transfer AND is only available from ONE spouse so that the property is either joint tenants OR 50/50 TIC by both spouses.

This rule can favour parties who own property prior to defacto / marriage or same sex relationship as spouses. Cannot be used for other family members or when not occupied. The occupancy period isnt stated but occupancy as a principle place of residence is generally expected. ie not just a sleepover.

It has some limits but is worthwhile considering as it can refresh loans and trigger a revised higher costbase for 50% of the property etc