Stamp duty in Victoria

I and my spouse want to buy a house in Victoria of around 800000. Here my spouse is a nz citizen and i am a foreigner( as per SRO). What would be the land transfer duty? Also if we go for a house which is less that 750000, will we get a first home buyer grant?

 

Hi Maneesh,

I assume you are referring to the stamp duty exemption/discount as opposed to an actual first home buyer grant?

Regardless of applicant, the zero stamp duty thing caps out at $600k. For purchases at $600k or below, eligible first home buyers pay zero stamp duty. For purchases greater than $600k and capped at $750k, "some" stamp duty is payable, but less than the normal amount (in other words, it is discounted). Above $750k there are no discounts.

A foreign purchaser normally pays a higher rate of stamp duty for their portion of the property purchase.

The online calculator is here; Land Transfer (Stamp) Duty Calculator (sro.vic.gov.au)

Do either of you have the rights to buy in Australia? (You can do a VEVO check here to get a report to provide to your mortgage broker. Check visa conditions online (VEVO) (homeaffairs.gov.au)) What percentage ownership split were you planning to purchase with? 50% of the property each?

 

Thank u Jacqui. Yes my spouse is a nz citizen so she has rights. The percentage split would be 50% each.

Regards
Maneesh

 

Hi @Maneesh Sivadas , I have assisted clients in similar situation as you. The amount of stamp duty payable depends on your manner of holding. While both tenants in common and joint tenancy may result in 50/50 ownership, the amount payable is significant between the two.

The purchase in your circumstances is very delicate, and a wrong move may result in significant foreign stamp duty to be payable and potential Foreign Investment Review Board (FIRB)'s liability.

The first home buyer grant only applies to new property. There are also other requirements you need to satisfy before you can qualify for the grant.

 

I would engage with a SOLICITOR for advice prior to purchase. The foreign purchaser rules for NZers arent as easy as you may think. You/they need to demonstrate VISA entitlemnet and this can be difficult. Many NZ arrivals have a subclass 444 Visa issued invisibly when they come here. Merely passing through the green gate can issue this Visa but sometimes records dont show it. OSR need proof of that although they say they dont. Why is it so hard ? I believe its because peple can pass from a third country via NZ and then to Australia. And we treat (some not all) Kiwis like interstate visitors so paperwork can be skipped.

NZ citizens are generally excluded from FIRB rules BUT its wise to check the visa that applies

Warning dont use the online visa veriifcation service called VEVO. It can incorrectly report the duty issues

 

Thank u

 

Hi Maneesh,

OK then when typing figures into the calculator for instance, put half of the purchase price in when determining the stamp duty that will be for your half, and do a separate calculation for your spouse.

First thing is of course to determine if you have rights to purchase here or not. If not and if you can't get the rights to purchase, one option is to buy the entire property in your spouse's name. Obviously get legal advice so that you understand your entitlements if the marriage happens to end in the future.