If you are a qualifying person with a disability, you may be entitled to an exemption from land transfer duty (stamp duty). This new exemption applies to transfers on or after 1 July 2023.
This exemption is directed to families who wish to provide a home for a severely disabled family member but find creating and managing a special disability trust prohibitive due to their complexity and cost.
This exemption is available if:
- you are a qualifying person with a disability
- you are gifted the home from an immediate family member
- the home is an established home with a dutiable value of $1.5 million or less, and
- you intend to occupy the home as your principal place of residence.
If the value of the home is above $1.5 million, you will not be entitled to receive the exemption.
Am I eligible for this exemption?
You are a qualifying person with a disability if, prior to the transfer, you receive a letter from either Services Australia or the Department of Veterans’ Affairs that states you meet the impairment and disability conditions of the beneficiary requirements of a special disability trust.
A special disability trust is not required to be established to receive this exemption.
Do I need to live in the property?
The property must be used as your principal place of residence.
You must move into the property within 12 months of the declaration or settlement and live there for 12 consecutive months as their principal place of residence.
If a change in circumstances means the residence requirement may not be satisfied, you must notify us in writing within 30 days of becoming aware of those circumstances. In limited circumstances, we may vary the residence requirement.
If the residence requirement is not met, the transfer will be reassessed without the exemption.
Does the exemption apply to vacant land or off-the-plan properties?
No. The exemption does not apply to vacant land transfers or partially completed homes There must be a building affixed to the land at the time of the transfer that in the Commissioner’s opinion is designed and constructed primarily for residential purposes and may lawfully be used as a place of residence.
Can ownership be split?
No. The owner or owners of the home after the transfer can only be a qualifying person or persons with a disability. If an owner of the home after the transfer is not a qualifying person or persons with a disability, the exemption will not apply.