Property and Tax Changes

The Victorian State and Federal Budget’s 2017-2018 introduced property and tax changes that may affect you.

  • Stamp duty loophole abolished: From 1 July 2017, property transfers between spouses or defacto partners involving commercial and/or investment properties will no longer be exempt from stamp duty. The exemption for the principal place of residence and for transfers following a relationship breakdown will remain in place. So, if you are intending on transferring your property to a spouse or defacto partner, contact us now before the exemption is removed on 1 July 2017.
  • Off the plan concessions abolished: Off the plan stamp duty concessions will be abolished for investors from 1 July 2017.
  • Vacant residential property tax:  From 1 January 2018, there will be a tax of 1% of a property’s capital improved value on properties that are untenanted for 6 months or longer. Exceptions include holiday homes, deceased estates and renovations.
  • Foreign resident capital gains withholding tax and clearance certificate: From 1 July 2017, for real property disposals of $750,000 and above (currently $2 million), the foreign resident capital gains withholding tax will be 12.5% (currently 10%).  The existing threshold and rate will apply for any contracts that are entered into before 1 July 2017, even if they are not due to settle until after 1 July 2017.  Currently, all Australian residents selling property with a market value over $2 million are required to get a clearance certificate from the Australian taxation office (otherwise they are deemed non-residents and the purchaser is obligated to withhold 10%). The lower threshold from 1 July 2017 means that all Australian vendors will need to get a clearance certificate from the ATO for property valued at $750,000 or more. If you engage us to advise on the sale of your property we will obtain this certificate on your behalf.


If you have any questions about how these changes may impact on you, please contact our office 03 9783 3111





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