 |
Which concession cards are accepted?
What are the criteria for eligibility?
What is the value to which the exemption or concession applies?
The value limits
Pensioner exemption/concession vs the First Home Bonus - which is worth more?
The principal place of residence concession incorporated into the pensioner concession
Under the Duties Act 2000 a transfer of land attracts duty based on the dutiable value of the land unless an exemption applies. If you are a concession card holder who has purchased land and a home, you may be entitled to the exemption or concession for eligible pensioners.
Which concession cards are accepted?
The concession cards that may entitle you to the exemption or concession are:
Click on image to enlarge
|
Health
Care Card (Centrelink or Veterans’ Affairs |
|
Gold Card (Department of Veterans’ Affairs) |
|
Pensioner Concession Card (Centrelink) |
|
Pensioner Concession Card (Department of Veterans’ Affairs) |
These are the only cards which are currently accepted. Please note that other cards, such as the Seniors Health Card, do not entitle you to this exemption or concession.
What are the criteria for eligibility?
Eligible pensioners must:
- hold one of the relevant concession cards at the date of the transfer.
- purchase the property for market value, and
- intend to reside in the home as your principal place of residence.
The home may be an existing home, a home built under a house and land package (where the person who sells you the land also builds the home as part of the agreed price), or a home that is built on vacant land that you have bought.
You can only receive the exemption or concession for eligible pensioners once.
What is the value to which the exemption or concession applies?
Where there was an existing home on the land at the time of the transfer, the relevant value is the purchase price or the market value of the land and home (whichever is the greater).
Where there was no home on the land at the time of the transfer but a home was constructed on the land within three years after that time, the relevant value is the purchase price or the market value of the land (whichever is the greater) plus the construction cost of the home The exemption or concession will only be provided when the home is complete. If you have paid duty on the transfer, you will receive a refund if a home was constructed within the three year period.
Example
John entered into a contract on 1 June 2006 to purchase a block of land for $100,000 which was transferred to him on 1 August 2006. On 22 September 2006, he signed a building contract to build his home on the land. The house was completed on 23 June 2007 and he moved in shortly after that. The cost of construction was $200,000.
John is an eligible pensioner. The value to which the pensioner exemption or concession applies is $300,000 ($100,000 for the land + $200,000 for the cost of construction). John will be entitled to a full exemption from duty.
The value limits
Contract date |
Full exemption |
Concession |
No exemption |
Form |
From 30 May 2006 |
Not more than $300,000 |
More than $300,000 but less than $400,000 |
$400,000 or more |
SRO Duties Form 8C |
From 1 May 2004 to 29 May 2006 |
Not more than $250,000 |
More than $250,000 but less than $350,000 |
$350,000 or more |
SRO Duties Form 8B |
Summary of how the concession is calculated for a contract of sale entered into on or after 1 January 2007.
Summary of how the concession is calculated for a contract of sale entered into on or after 30 May 2006 and before 1 January 2007
Pensioner exemption/concession vs the First Home Bonus - which is worth more?
If you qualify for the First Home Owner Grant, you may also be eligible for the the bonus. If you qualify for both the bonus and the pensioner exemption or concession, you have the choice of receiving one or the other. You cannot receive both.
Depending on the value of the property purchased, it may be more advantageous to receive the bonus than the pensioner exemption or concession
If you choose to receive the bonus, you are not entitled to the:
- pensioner exemption or concession,
- first home owner with family exemption or concession or
- duty concession for a principal place of residence.
Your duty liability will be calculated using the standard rate.
As a guide, we have made the following calculations on the basis that a house exists at the time of transfer.
Contract date |
Amount of Bonus |
Value of purchase |
Which is worth more? |
From 1 January 2007 to 30 June 2009
|
$5000 for new residential premises |
$0 to $163,790
and
$357,664 to less than $400,000 |
First Home Bonus |
$163,811 to $357,662 |
Pensioner exemption or concession |
$163,791 to $163,810
and $357, 663 |
Pensioner exemption is equal to First Home Bonus |
$3,000 for established homes |
$0 to $123,790
and
$374,598 to less than $400,000 |
First Home Bonus |
$123,811 to $374,597 |
Pensioner exemption or concession |
$123,791 to $123,810 |
Pensioner exemption is equal to First Home Bonus |
From 30 May 2006 to 31 December 2006 |
$3,000 |
$0 to $122,324
and
$378,039 to less than $400,000 |
First Home Bonus |
$122,342 to $378,038 |
Pensioner exemption or concession |
$122,325 to $122,341 |
Pensioner exemption is equal to First Home Bonus |
From 1 January 2006 to 29 May 2006 |
$3,000 |
$0 to $122,324
and
$321,858 to less than $350,000 |
First Home Bonus |
$122,342 to $321,857 |
Pensioner exemption or concession |
$122,325 to $122,341 |
Pensioner exemption is equal to First Home Bonus |
You are encouraged to seek advice from a qualified adviser as to which option is better for you. The above figures may be slightly different for an eligible pensioner who purchased a vacant block and built a house on it within three years of the transfer.
This page will be updated shortly as a result of changes announced in the 2008 State Budget. For further information in relation to these changes, please go to our home page.
The principal place of residence concession incorporated into the pensioner concession
If you are entitled to the pensioner concession and you entered into a contract to purchase your home on or after 1 January 2007, you will automatically benefit from the duty concession for a principal place of residence.
| |