Duty concession for off-the-plan sales (land and building packages and refurbishments)
This ruling clarifies the application of the duty concession for off-the-plan sales and explains the changes to the calculation of the concession for contracts entered into on or after 1 October 2008. The ruling also sets out the deemed maximum percentage amounts for different classes of buildings or refurbishments that can be used to calculate the percentage of building works component in contracts for off-the-plan sales.
Contracts signed before 1 July 2017: The concession is available for all property types including residencies purchased for investment purposes and commercial properties.
Contracts signed on or after 1 July 2017: The concession is only available for the purchase of a home. The transfer must also qualify for the PPR concession or the first-home buyer duty exemption/concession which impose a 12-month residence requirement and certain thresholds. Failure to meet the residence requirement will result in the transfer being reassessed with the concession removed.