Duties Act 1997 No 123
Historical version for 29 November 2002 to 31 December 2002 (accessed 24 November 2014 at 01:29) Current version

Subdivision 1 Agreements and associated mortgages

69   The nature of the scheme

This scheme is intended to help people who are acquiring their first home. Under the scheme, the acquisition and any mortgage given to assist the financing of the acquisition is subject to a concession or exemption from duty.

70   Commencement

The following transactions and instruments are eligible for consideration under the scheme:
(a)  agreements for sale or transfer entered into on or after 1 July 2000,
(b)  transfers that occur on or after 1 July 2000,
(c)  mortgages over land the subject of those agreements or transfers.

71   Eligible persons

(1)  A purchaser or transferee under an agreement or transfer may apply under the scheme, but will be eligible only if the purchaser or transferee has not at any time owned residential property in Australia (either solely or with someone else) that he or she occupied as his or her principal place of residence.
(2)  If there is more than one purchaser or transferee under an agreement or transfer, they may apply under the scheme, but will be eligible only if at least one of them has not at any time owned residential property in Australia (either solely or with someone else) that he or she occupied as his or her principal place of residence.

72   (Repealed)

73   Ineligible persons

(1)  Companies, partnerships, and persons in their capacity as trustees, are not eligible.
(2)  However, a trustee is eligible if the trustee is an apparent purchaser of the kind referred to in section 55 and the real purchaser is eligible.
(3)  A purchaser or transferee under an agreement or transfer is not eligible if the purchaser or transferee has previously been a party to an application under the scheme and the application was approved by the Chief Commissioner.
(4)  If there is more than one purchase or transferee under the agreement or transfer, the purchasers or transferees are not eligible if any one of them has previously been a party to an application under the scheme and the application was approved by the Chief Commissioner.
(5)  Despite subsection (4), the Chief Commissioner may determine that the purchasers are eligible if the Chief Commissioner is satisfied that the purchaser who has previously been a party to an application under the scheme that was approved is acquiring an interest in the property that is the subject of the current application solely for the purpose of assisting the other purchaser or purchasers in financing the acquisition.

74   Eligible agreements or transfers

(1)  The agreement or transfer must be for the acquisition of a first home or for the acquisition of a vacant block of residential land intended to be used as the site of a first home.
(2)  The agreement or transfer must be for the whole of the property.
(3)  The dutiable value of the dutiable property that is the subject of the agreement or transfer must be less than:
(a)  $300,000 if the property is located in the Metropolitan Area and has a private dwelling built on it, or
(b)  $250,000 if the property is located elsewhere than in the Metropolitan Area and has a private dwelling built on it, or
(c)  $140,000 if the property is located in the Metropolitan Area and comprises a vacant block of residential land, or
(d)  $110,000 if the property is located elsewhere than in the Metropolitan Area and comprises a vacant block of residential land.
Note. The dutiable value of dutiable property is the greater of:
(a)  the consideration (if any) for the dutiable transaction (being the amount of a monetary consideration or the value of a non-monetary consideration), and
(b)  the unencumbered value of the dutiable property.

Metropolitan area is defined in the Dictionary.

(4)–(6)  (Repealed)

75   Ineligible agreements and transfers

(1)  An agreement or transfer is not eligible if it involves the acquisition of a business or business premises. However, an agreement for the purchase, or a transfer, of a farming property on which there is a private dwelling is not excluded.
(2)  An agreement for the purchase, or a transfer, of a holiday home is not eligible.
(3)  (Repealed)

76   Residence requirement

(1)  The home must be occupied or intended to be occupied by the person or persons who are acquiring it on or before settlement, or within 12 months after settlement, as the principal place of residence.
(2)  This section does not apply to a person who acquires an interest in the property concerned solely for the purpose of assisting the other purchaser or purchasers in financing the acquisition (as referred to in section 73 (5)).

77   Eligible mortgages

(1)  A mortgage is eligible if it is given to assist the financing of a purchase under an agreement or transfer that is eligible under the scheme and the purchaser or purchasers under the agreement or transfer are eligible under the scheme.
(2)  The mortgage must be over the property purchased.
(3)  In the case of a property which has a private dwelling built on it, the amount of advances secured must not be more than the amount of the dutiable value permitted under section 74 (3) (a) or (b), as the case requires.
(4)  In the case of a property which comprises a vacant block of residential land, the amount of advances secured must not be more than the amount of the dutiable value permitted under section 74 (3) (c) or (d), as the case requires, unless the amount of advances secured under the mortgage includes provision for the building of a private dwelling on the property. In such a case, the amount of advances secured must not be more than the amount of the dutiable value permitted under section 74 (3) (a) or (b), as the case requires.

78   Making of applications

(1)  An application is made to the Chief Commissioner by completing a statutory declaration in a form approved by the Chief Commissioner.
(2)  (Repealed)
(3)  The Chief Commissioner may at any time (whether before or after the approval of an application) require the applicant or applicants to provide such further information as the Chief Commissioner may consider necessary for the proper administration of the scheme.

79   Determination of applications

An application is to be determined solely at the discretion of the Chief Commissioner whose decision is final.

80   Duty payable if application approved

(1)  If an application concerning an eligible agreement or transfer is approved and the dutiable value of the dutiable property that is the subject of the agreement or transfer is not more than the following amounts, no duty is chargeable on the agreement or transfer:
(a)  $200,000 if the property is located in the Metropolitan Area and has a private dwelling built on it, or
(b)  $175,000 if the property is located elsewhere than in the Metropolitan Area and has a private dwelling built on it, or
(c)  $95,000 if the property is located in the Metropolitan Area and comprises a vacant block of residential land, or
(d)  $80,000 if the property is located elsewhere than in the Metropolitan Area and comprises a vacant block of residential land.
(2)  If an application concerning an eligible agreement or transfer is approved and subsection (1) does not apply to the agreement or transfer, duty is chargeable on the agreement or transfer as follows:
(a)  if the property is located in the Metropolitan Area and has a private dwelling built on it—at the rate of 8.99% of the dutiable value of the dutiable property that is the subject of the agreement or transfer, less $17,980.00, or
(b)  if the property is located elsewhere than in the Metropolitan Area and has a private dwelling built on it—at the rate of 9.65% of the dutiable value of the dutiable property that is the subject of the agreement or transfer, less $16,885.00, or
(c)  if the property is located in the Metropolitan Area and comprises a vacant block of residential land—at the rate of 7.53% of the dutiable value of the dutiable property that is the subject of the agreement or transfer, less $7,152.00, or
(d)  if the property is located elsewhere than in the Metropolitan Area and comprises a vacant block of residential land—at the rate of 7.8% of the dutiable value of the dutiable property that is the subject of the agreement or transfer, less $6,240.00.
Note. Metropolitan Area is defined in the Dictionary.

80A   Definition

In this Subdivision:

residential property means:

(a)  land on which there is a building that is lawfully occupied as a place of residence or suitable for occupation as a place of residence, or
(b)  a company title dwelling.

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