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Senior Citizens and Stamp Duty Concessions
If you are a Senior who owns property in New South Wales or is thinking of purchasing a property in New South Wales you need to be aware of the new legislation passed through Parliament exempting you from the payment of stamp duty in certain circumstances.
This important piece of legislation is called the Duties Amendment (Senior’s Principal Place of Residence Duty Exemption) and will be in effect from 1st July, 2011 to the 1st July, 2012. This legislation contains good news for Senior Citizens who are looking to relocate to smaller accommodation.
What is the Senior’s Principal Place of Residence Duty Exemption?
The Senior’s Principal Place of Residence Duty Exemption is an exemption from stamp duty for Senior’s between the age of 55 and 65 years purchasing a new house which has never been occupied before or purchasing an off the plan home.
How long is the stamp duty exemption available?
The Senior’s stamp duty exemption is only available for contracts entered into after 1st July, 2011 and before 1st July, 2012.
How do I qualify for the stamp duty exemption?
To be eligible to receive the Senior’s stamp duty exemption you must satisfy the following criteria:
1. Be between the ages of 55 and 65 years.
2. Enter into a contract for the purchase of a new house which has never been occupied before or an off the plan home between the 1st July, 2011 and the 1st July, 2012.
3. Move into the house within twelve months of the settlement of the purchase and occupy the house as your principle place of residence for a continuous period of twelve months.
4. Owned and occupied a home in New South Wales in the previous twelve month period and sell this property within six months of entering into the contract for their new home.
5. The dutiable value of the property must not exceed $600,000 for a new home or off the plan purchase and must not exceed $400,000 for vacant land.
As well as the above criteria you will not be eligible to receive the stamp duty exemption if the contract for sale merely replaces a contract for sale made prior to the 1st July, 2011 for the same property.
What should I do to ensure I receive the stamp duty exemption?
To ensure that you receive the Senior’s stamp duty exemption you need to obtain expert legal advice on whether you are eligible or how to become eligible to receive the exemption.
As the exemption will expire on the 1st July, 2012 you need to ensure that you act quickly in obtaining legal advice in the event that you are a Senior considering downsizing your current property.
Article provided courtesy of Craddock Murray Neumann Lawyers
For further assistance contact A Grade Tax Accountants in Penrith for Tax Planning advice.