Article by Davina Deluao
For plenty of empty nesters, downsizing can be an efficient choice especially when it comes to saving on housing costs and embracing retirement. With fewer people in the home, it is a practical option to settle into a new place that better suits your current lifestyle.
When purchasing any property, a stamp duty payment is required and is assessed according to the value of the house. However, a few of the State and Territory Governments have established a number of stamp duty concessions to assist seniors looking to downsize.
Along with the aim of boosting the property industry and construction due to the effects of the Coronavirus pandemic, stamp duty discounts for downsizers aim at assisting seniors and pensioners find an affordable home where they can settle down comfortably. Although incentives vary between the different states, most of the price thresholds align with the housing prices in regional areas and appeal to those wanting to move out of busy urban locations.
Pensioners within Victoria are able to be exempt from paying stamp duty fees with a full waiver for homes that are valued up to $330 000. Buyers are able to save around a total of $12 870. In addition, a stamp duty discount is also available for properties that cost up to $750 000.
To be eligible for the incentive, it may only be applied once and the place must be utilised as a residential family home. It may be used alongside previous stamp duty discounts including concessions for purchasing off-the-plan apartments within the Melbourne City Council vicinity.
Australian Capital Territory
The ACT has abolished all stamp duty payments for off-the-plan apartments and townhouses that are under $500 000. Furthermore, the pensioner stamp duty concession scheme focuses on allowing seniors to search for accommodation and be able to relocate more conveniently.
Starting from 1 July 2021, the threshold to avoid paying stamp duty was increased from $450 000 to $490 000. There are also stamp duty discounts for downsizers with houses priced up to $642 000 which was moved up from $570 000.
At Tasmania, the stamp duty discounts for downsizers involve being able to claim a 50% stamp duty discount for houses worth up to $500 000. After selling their home, eligible seniors are able to save on transfer duties when moving into their new property. Last year, the Tasmanian Government announced that its downsizing stamp duty concession will be extended for the next two years until 30 June 2022.
With off-the-plan apartments, pensioners are able to make use of the stamp duty rebate scheme and can save up to $50 000. There are no conditions or limits in regards to the purchase price value therefore, the general concession is applicable to all downsizers who own property.
As there is a range of stamp duty discounts for downsizers to access, it is worthwhile to take the time and research further information for your specific state or territory. Seniors are able to present their eligibility mostly through holding a Pensioner Concession Card, a Health Care Card or a Commonwealth Seniors Health Card.
Looking to downsize? For assistance with your search through to settlement, call 1300 123 463 to chat with one of our friendly property experts about how we can help today.