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.
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.
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
- 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.
Use our home concession eligibility tester to find out if you are eligible to claim the 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.
How much you will pay
The concession doesn’t apply to any part of the land that’s used for non-residential purposes. To find out more, read the public ruling on the residential purposes for the transfer duty concession for homes and first homes (DA087.1)
|Dutiable value of home||$550,000|
|Concessional transfer duty on first $350,000||$3,500|
|Transfer duty on balance ($200,000)||$7,100|
|Total transfer duty||$10,600|
|(Without the home concession, the transfer duty would be $17,775.)|
How to claim
Complete the following forms and include them with your documents when lodging them for stamping:
- a claim for home or first home transfer duty concession (Form D2.1)
- an identity details annexure for each non-Australian transferor and transferee.
Find out more about lodging and stamping your documents.
Claiming after the transfer
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.
Find out about applying for a reassessment.
Obligations after you claim
If you claim the concession but don’t move in or dispose of the residence within one year of moving in, you must notify us by completing a notice for reassessment (Form D2.4). Read about common reasons for reassessment to find out more about a reassessment of your transfer duty concession and what documents you need to lodge.
After a reassessment, you may have to pay a transfer duty liability. You may also have to pay unpaid tax interest and penalty tax, depending on your circumstances.