Stamp Duty and Land Tax Update for the ACT

The recent ACT Budget 2014 – 2015 announced the following updates:

1.                 Stamp/conveyancing duty

From 4 June 2014, the conveyance duty thresholds and rates have dropped slightly in line with the ACT Government’s stated policy of phasing out stamp duty over a 20 year period.

Below are the new rates of duty.

Transaction dates from 4 June 2014

Source: ACT Budget 2014/2015

Value of Property Duty Payable – transaction dates from 4 June 2014
up to $200,000 $20 or $2.00 per $100 or part thereof, whichever is greater
$200,001 to $300,000 $4,000 plus $3.50 per $100 or part thereof by which the value exceeds $200,000
$300,001 to $500,000 $7,500 plus $4.15 per $100 or part thereof by which the value exceeds $300,000
$500,001 to $750,000 $15,800 plus $5.00 per $100 or part thereof by which the value exceeds $500,000
$750,001 to $1,000,000 $28,300 plus $6.50 per $100 or part thereof by which the value exceeds $750,000
$1,000,001 to $1,454,999 $44,550 plus $7.00 per $100 or part thereof by which the value exceeds $1,000,000
$1,455,000 and over A flat rate of $5.25 per $100 applied to the total transaction value

 

2.                 Land Tax changes

Land tax applies to any residential property that is rented, or any residential property owned by a corporation or a trustee, even if the property is not rented.

Owners of an investment property will now pay a fixed charge of $900, plus a percentage depending on the most recent unimproved land value. Land tax comes on top of rates.

The new rates are:

    • for an unimproved land value of $150,000, land tax of $1,568
    • for an unimproved value of $250,000, land tax of $2,178
    • for an unimproved land value of $350,000, land tax of $3,257

3.                 Over 60s Home Bonus Scheme

The Over 60s Home Bonus Scheme (Home Bonus Scheme) is to assist those over 60 who are not eligible for the pensioner duty concession to move to accommodation more suited to their needs (e.g. from a house to a townhouse). The Home Bonus Scheme is available to all people aged 60 years and over. The Home Bonus Scheme will run for period of two years (2014-15 and 2015-16).

The property value thresholds from 1 January 2015 to 30 June 2015 are as follows:

Eligible property (residential home)

Dutiable value Concessional duty payable
$610,000 or less $20 (minimum duty)
more than $610,000 but less than $780,000 $17.75 for each $100 or part thereof by which the dutiable value exceeds $610,000 ($20 minimum duty).
$780,000 or more No concession

Eligible vacant block (land)

Dutiable value Concessional duty payable
$324,100 or less $20 (minimum duty)
more than $324,100 but less than $378,500 $19.75 for each $100 or part thereof by which the dutiable value exceeds $324,100 ($20 minimum duty).
$378,500 or more No concession

Applicants must satisfy eligibility requirements for the scheme including:

  • the Home Bonus Scheme application must be lodged within the required time;
  • applicants must satisfy a current and previous property ownership test;
  • the total value of the property must be less than the upper property value threshold amount; and
  • applicants must satisfy residency requirements.

Over 60s Home Bonus Scheme

For more information or a quote please use our contact form and one of our experienced property lawyers or conveyancers will contact you; or phone 6206 1300 to make an appointment or by email on info@elringtons.com.au