Various COVID-19 relief measures have caused delays in our service. We are assessing lodgements and applications in order of date received.
You can claim a home concession for transfer duty when acquiring a residence, as long as you meet certain requirements. If you are eligible, you will pay a reduced amount, saving you up to $7,175.
Unlike the first home concession, you can claim the home concession even when you have owned a home before.
The home concession rate applies to the first $350,000 of the consideration or value of the residence, and the general transfer duty rates then apply to the balance.
You do not have to be an Australian citizen or permanent resident to claim a concession, but you must meet the eligibility criteria. Additional foreign acquirer duty may apply if you are a foreign person.
To claim a home concession when you buy or acquire a home, you must:
move into it with your personal belongings and live there on a daily basis within 1 year of settlement (this time cannot be extended)
not dispose (sell, transfer, lease or otherwise grant exclusive possession) of all or part of the property before you move in.
To keep the benefit of the home concession in full after you move in, you must not dispose of all or part of the property within 1 year. A partial concession may apply if you dispose within 1 year.
Provided you qualify, you can claim a home concession on your interest (or share), whether or not other acquirers also qualify for a home concession or first home concession.
Existing tenants or previous owners
Any existing tenants must move out when their lease expires or within 6 months of settlement, whichever is the earlier, for you to stay eligible for the concession. Previous owners who continue to stay in the property must also move out within 6 months.
Demolishing the home
The home concession will not apply if you demolish the existing home without first living there, even if you construct and occupy a new home within a year.
An architect purchases an old house on a block of land. The old house will be removed so that a new house can be built. For convenience, the architect stays in the house over a weekend while he removes some fittings. He plans to continue living in a leased apartment while the new house is built.
The architect is unable to claim the home concession as he didn’t make the house his principal place of residence before demolishing it.
A couple buys a house, moves in and lives there after enrolling their child in a local day care centre. They update their electoral roll, driver licence and myGov details. After living there continuously for 3 months, they decide to rebuild. They move out and arrange for the house to be demolished.
They have resided in the property and made it their principal place of residence. Provided they do not sell, transfer, lease or otherwise grant exclusive possession within the first year of occupying the property, they are able to retain the full benefit of the concession even though the original house was demolished.
When lodging documents, make sure you include a covering letter with your name, address and details of what you have lodged. If you also give us an email address or mobile number, we will confirm when we’ve received your documents.
If you’re unsure that you will meet the concession requirements, you can pay duty at the full rate when your documents are assessed and then claim the concession later if you have met, or will meet, the requirements. You just need to lodge the forms and documents with us.
You can also do this if you didn’t claim a concession when you acquired the home because you weren’t going to occupy it, but then you decide to move in.
In either case, we will reassess your duty at the concessional rate and refund the balance of your original payment.