Pensioners Exempt from Stamp Duty*

If you are looking to downsize and you are a pensioner, you may be interested in the below information regarding stamp duty. Being well informed on your journey to sale will help your transition become easier.

If you live in Victoria and hold a valid pensioner concession or health care card, you may be entitled to a concession on the stamp duty attributed to your purchase.

To be eligible you would need to hold one of the following cards (which must be valid at the settlement date):

(a) Health Care Card (Department of Human Services);

(b) Health Care Card (pre September 2012) – Centrelink;

(c) Repatriation Health Card (Department of Veterans’ Affairs);

(d) Pensioner Concession Card (DHS or Department of Human Services or Department of Veterans’ Affairs);

(e) Pensioner Concession Card (pre August 2012) – Centrelink; or

(f) Commonwealth Seniors Health Card (DHS or Department of Human Services or Department of Veterans’ Affairs).

As well as being a primary card holder of a valid concession or health care card, a purchaser must also purchase the property for market value, and intend to live in the property as their principal place of residence (see requirements above). A purchaser can only receive this concession once.

*The concession amount will depend on the value of a person’s interest in the property. Currently, a person’s interest must be less than $750,000 in order to claim a benefit. If a person’s share is $330,000 or less, they will be entitled to a full exemptionin stamp duty.

Note that a person’s interest is not necessarily the same as the value of the property.

Example 1: Mark and Mary buy a property for $800,000. Mark has a valid concession card, but Mary does not. Mark’s share of the property is $400,000. As the value of his share of the property is between $330,000 and $750,000, he will be eligible for a concession on his stamp duty.

Example 2: Kevin and Stacey buy a property for $660,000. They are both primary card holders of valid health care cards. Each of their shares is $330,000 or less, and accordingly, they both receive a full exemption on stamp duty.

Example 3: Steven buys a property for $760,000. His share of the value of the property is $760,000, which is over the threshold. He is not entitled to this concession.

Source: This information has been taken from Astuto Lawyers please refer to their website if you would like more information.

If you would like to feel even more informed, confident and in control on your journey to sale, why not join Belinda Woolrych at her next Downsizing Masterclass.

Belinda is an expert speaker and author of Rightsize Your Home - The Empty Nester’s Guide to a Stress-free Downsize.

You will learn how to overcome the challenges associated with downsizing, how to prepare your home for sale to maximise profit and avoid sellers regret.

CLICK HERE for an event near you.

Julia Dyer is the owner and founder of the Downsizing Connections Group, intent on helping those looking to Downsize connect with the right service providers and feel more confident and in control on their Downsizing journey.

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