15/06/2023
Conveyance duty or stamp duty is tax that is payable when you purchase a property in the ACT. Conveyance duty is assessed on the dutiable value of the property and the obligation to pay duty is subject to the type of transaction and the circumstances of each buyer.
The Duties Act 1999 (ACT) exempts certain transactions from conveyance duty. These transactions include but are not limited to:
- Transfer of a deceased estate in accordance with the Will or Letters of Administration of the deceased person;
- Transfer made in accordance with a court order as a result of a breakdown of relationship between partners;
- Transfer of a principal place of residence to a partner resulting in the property being held by both partners;
- Transfer between beneficiaries in accordance with a trust provided that duty was paid on the initial declaration of trust;
- Transfer between property from one superannuation fund to another;
- Transfer of land to a prescribed person; and
- Transfer as a result of a discharge or transfer of a mortgage or declaration of trust over a mortgage.
The ACT Government provides conveyance duty concession schemes that can reduce or remove the financial burden of having to meet conveyance duty for buyers who are eligible.
As at the date of this article, there are several concession schemes available. They include but are not limited to:
- The Home Buyer Concession Scheme designed to reduce or remove duty payable for adults who can meet additional criteria;
- The Disability Duty Concession Scheme designed to remove duty payable for adults who have long-term and permanent disability and can meet additional criteria;
- The Pensioner Duty Assistance designed to reduce or remove duty payable for pensioners moving to accommodation more suitable for them and can meet additional criteria;
- The Owner Occupier Duty Concession designed to reduce or remove duty payable for adults purchasing off the plan units and can meet additional criteria; and
- The Special Disability Trust Duty Exemption designed to remove duty payable for a beneficiary of a special disability trust who can meet additional criteria.
The ACT Government also permits duty deferrals for certain people eligible for the Home Buyer Concession Scheme, the First Home Owner Grant and Pensioner Duty Assistance. Interest will accrue and be payable on the deferred duty amount until paid in full.
It is the responsibility of each buyer to assess their eligibility for the concessions and make a claim by entering in the appropriate concession code number on their Buyer Verification Declaration. The ACT Revenue Office allows each buyer to assess their eligibility by way of an online questionnaire available on their website.
For further information or assistance with respect to conveyance duty, please contact our property team at property@griffinlegal.com.au.
