Transfer to a qualifying person with a disability from 1 July 2023

Circumstances/Transactions:

A transfer of a principal place of residence (PPR) to a person or persons with a disability by an immediate family member of the transferee for no consideration when the transfer takes place on or after 1 July 2023. The transferee must meet the qualifying requirements under section 57Q of the Duties Act 2000 (the Duties Act).

An exemption is available where the dutiable value of the property subject to the transfer is up to and including $1.5 million with respect to the PPR of the person with a disability. 

If the dutiable property is not gifted by an immediate family member, this exemption does not apply. Immediate family member of the person with a disability means a natural, adoptive, or step parent, grandparent or sibling, or a legal guardian of a person under 18.

At the time of the transfer, a building must be affixed to that land that is designed and constructed primarily for residential proposes that may lawfully be used as a residence.

Section 57Q of the Duties Act requires that, prior to the transfer, the person with the disability has received a determination that they meet the impairment or disability conditions for a special disability trust (SDT) from –
(a)    Services Australia under section 1209M of the Social Security Act 1991 (Commonwealth); or
(b)    the Department of Veterans’ Affairs under section 52ZZZWA of the Veterans’ Entitlement Act 1986 (Commonwealth)
 

Evidence:

For a transfer of land, this evidence is required:

1. The Digital Duties Form.
2. A statutory declaration by the transferee declaring:
   • whether the dutiable property was gifted by an immediate family member of the principal beneficiary, and if so, their relationship to the principal beneficiary.
   • whether any consideration passed between the parties.
   • whether the property is intended to be the PPR of the principal beneficiary of the SDT.
3. Evidence of the value of the property as at the date of the transfer, by one of these:
   • A valuation by a certified practicing valuer who is a member of the Australian Property Institute (API) or by a member of the Real Estate Institute of Victoria (REIV) with sworn valuer accreditation.
   • A letter of appraisal from a licensed real estate agent and a copy of the relevant rates notice. 
4. A copy of a written determination that the transferee meets the impairment or disability conditions for a SDT, from:
   • Services Australia under section 1209M of the Social Security Act 1991 (Commonwealth); or
   • the Department of Veterans’ Affairs under section 52ZZZWA of the Veterans’ Entitlement Act 1986 (Commonwealth).

This determination must have been made prior to the date of the transfer.