Exemption for a transfer to a qualifying person with disability

Key information

The transfer of a home from an immediate family member to a person with a disability may be exempt from land transfer duty. The exemption applies to transfers on or after 1 July 2023.

This exemption supports families to provide a home for a family member with disability without needing to establish a formal special disability trust.

The exemption only applies if all the eligibility requirements are met.

Eligibility criteria

Qualifying person with disability 

For a person with a disability to qualify for the exemption:

• before the transfer, the person with a disability must have a letter from:
  • Services Australia, or
  • the Department of Veterans’ Affairs, and
• the letter must state that they meet the impairment or disability conditions for a special disability trust.

A special disability trust does not need to have been established.

Immediate family member

The person transferring the property to the qualifying person(s) with a disability must be an immediate family member of the qualifying person(s).

An immediate family member of a qualifying person(s) is:

• a parent (natural, adoptive or step-parent)
• a legal guardian, including a person who was the legal guardian of the qualifying person(s) when the qualifying person(s) was under 18 years old
• a grandparent, or
• a sibling.

No consideration

The exemption only applies to homes gifted from an immediate family member to a qualifying person(s) with a disability. It does not apply to purchases of homes or transfers for which any money has been provided.

If a home is being purchased or money will be paid for the transfer of the property, other duty exemptions or concessions may be available, including the:

• first home buyer duty exemption or concession
• pensioner and concession cardholder duty reduction.

Property value

The market value of the property transferred to the qualifying person with a disability must not exceed $1,500,000. 

Completed home on the land

At the time of the transfer, there must be a building affixed to the land. We must be satisfied that the building:

• is designed and constructed primarily for residential purposes, and
• may lawfully be used as a place of residence.

Residence requirement

• At the time of transfer, the qualifying person(s) with a disability must intend to occupy the property as their principal place of residence, and
• The qualifying person(s) must commence occupying the property as their principal place of residence within 12 months after they became entitled to possession of the property, and 
• The qualifying person(s) must occupy the property as their principal place of residence for at least 12 months.

If there is more than one transferee, each transferee must meet the residence requirement.

If the qualifying person(s) with a disability becomes aware of any circumstances that may result in the residence requirement not being met, they must notify us within 30 days of becoming aware of those circumstances. We may vary the residence requirement in limited circumstances.

If we are not notified and later identify that the residence requirement was not met by the qualifying person(s), the transfer will be reassessed for duty as if the exemption did not apply.

Multiple owners/transferees

If there is more than one transferee in respect of the transfer, each transferee must be individually entitled to the exemption. This includes meeting the residence requirement. The exemption will not apply to the transfer if only one transferee meets the eligibility criteria to be entitled to the exemption.

Apply for the exemption

You apply for this exemption when you lodge the transfer in Duties Online.

In the Evidentiary Requirements Manual see the requirements for a transfer to a qualifying person with a disability from 1 July 2023.