Many people know of the stamp duty savings for first home buyers, particularly with recent increases to the Victorian schemes (and our own recent blog posts here and here), however you may not be aware that another scheme that is available is an exemption to stamp duty available for pension and concession card holders.
Generally, eligible people can receive a full exemption on stamp duty for home purchases valued up to $330,000, and a reduction in stamp duty for purchases up to $750,000. The benefit is only ever redeemable once.
To receive the discount you must:
- Hold an approved concession card
- Purchase the house for market value
- Plan to live in the property for at least 12 months as your principal place of residence
What if a buy a property from a relative or receive a gift?
The concession/exemption only benefits those who are purchasing a property for market value. Therefore, if a property is being sold for a reduced amount by a family member, you will not receive the benefit.
How can I calculate the benefit?
The benefit you will receive depends on a number of circumstances, however to give you an idea the State Revenue Office has created a handy online calculator.
As shown, the pensioner exemption/concession can be extremely beneficial. You may not have realised this benefit even existed, therefore if you are hoping to purchase a house and think this could apply to you, make sure you call the conveyancing team at OFRM on 03 5445 1000. You could be surprised at how much you could save!