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Disposal and its effect on your concession

If you claim any of the home or first home concessions, you can’t dispose of part or all of the property before moving in or within 12 months of when you first occupy it. For transfer duty purposes, ‘dispose’ means sell or transfer, but it can also apply to leases or other arrangements where you grant another person a right to occupy or use the property.

When you dispose of a property, you generally give up your exclusive right to use it to someone else. This means you fail to meet the concession requirements, as you can’t use a property as your home when you’ve given a right to all or part of it to someone else.

Your transfer duty liability will then need to be reassessed, as if you were not eligible for the full concession (you may keep some benefit of the concession if you occupied the home but disposed within 12 months). If this applies to you, lodge a notice for reassessment (Form D2.4) with the original stamped documents within 28 days of becoming ineligible for the concession. Read about common reasons for reassessment to find out more about a reassessment of your transfer duty concession.

However, you don’t dispose of your property if either:

Use our home concession eligibility tester to find out if you are eligible to claim a concession.

Example

Kevin buys a property and claims a home concession. Before moving in, he decides to go on a 6-month holiday. Instead of leaving the property vacant, he allows his friend Julia to live in it rent-free for the time he is on holiday. There is no lease or other written agreement for this arrangement.

Julia moves in with all her possessions, arranges utilities for the property in her name and is the only person who has keys for it.

After 6 months, when Kevin returns from holiday, Julia moves out and he moves in.

In this case, Kevin has disposed of the property. Although he didn’t formally transfer or lease the property to Julia, her right to the property was exclusive from anyone else, including Kevin.

As a result, Kevin’s transfer duty is reassessed to a higher amount including unpaid tax interest, which he must pay.

See the full definition of 'dispose' to find out more.

More information

 

Contact

For transfer duty enquiries:

  • call 1300 300 734 (Australia) or
    +61 7 3227 6044 (overseas)
  • send an email using our online enquiry form.
Licence
Creative Commons Attribution 3.0 Australia (CC BY 3.0)
Last updated:
17 July 2017
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