Concession or exemption for City of Melbourne residential property

Key information

This temporary land transfer duty concession and exemption applied to contracts entered into between 21 May 2021 and 30 June 2022.

The relief applied to properties that met all the following conditions:

• Dutiable value of up to $1 million.
• Residential property with a new home on the land at the time of the transfer.
• Located within the City of Melbourne local government area.
• A genuine purchase where the buyer pays for the property (not a gift).

The relief was:

• a 50% concession for new residential properties (contracts entered into between 1 July 2021 and 30 June 2022)
• a full exemption for new residential properties that remained unsold for 12 months or more after completion (contracts entered into between 21 May 2021 and 30 June 2022).

The 50% concession applied after all other eligible benefits were applied. This includes the first home buyer duty concession, the principal place of residence concession (including any off-the-plan concession) and the pensioner concession.

Full exemption for unsold properties

To obtain the exemption, the new residential property must have remained unsold for 12 months or more. You must have provided a copy of an occupancy permit for the new home issued at least 12 months before the contract was entered into.

The property must have been a new home and must not have been previously sold or occupied as a residence or for short-term accommodation since the occupancy permit was issued.

Off-the-plan purchases

If the off the plan concession was applied, it may have reduced the property’s dutiable value to $1 million or less.

The concession or exemption could only apply after the residence requirement for that concession is met.

At least one purchaser must have used the property as their principal place of residence for a continuous period of 12 months, starting within 12 months of possession.

In these cases, duty is paid within 30 days of settlement. Once the residence requirement is met, you can contact us to apply the relief to your transfer. 

To apply email electroniclodgement@sro.vic.gov.au and include:

• that you are applying for the City of Melbourne duty relief for an off the plan purchase
• property address and volume and folio
• your name
• SRO reference number (shown on your Duty Statement)
• evidence that you have met the residence requirement, such as utility bills for the relevant 12 months.

Residential property definition

Residential property is land capable of being used solely or primarily for residential purposes and that may lawfully be used in that way.

This means the land must have had a completed home that you could lawfully live in at the time of the transfer. If the land was a mixed-use property (e.g. a milk bar and house), the primary use must have been residential.

New home definition

A new home means the same as it does under the First Home Owner Grant and Home Buyer Schemes Act 2000. It includes a newly built home and a land and building package. The home cannot have been previously sold or occupied as a place of residence or used for short-term accommodation.

Applying for the relief

You or your representative must provide information about the transaction when lodging the Digital Duties Form. We use the information disclosed in this form to automatically apply the concession or exemption if all eligibility criteria are met.

Foreign purchasers

Foreign purchasers are entitled to the relief if the transfer meets the eligibility requirements. However, the relief will not apply to the foreign purchaser additional duty component of the land transfer duty calculation.