Announced 16 March 2021
Change to duty concession for pensioners downsizing to a new home
The dutiable value of a property that may be eligible for the 50 per cent discount on property transfer duty has increased from $400 000 to $500 000. All existing eligibility criteria must be met.
The increase takes immediate effect but is subject to the passage of legislation.
Claiming the refund
A. Properties of dutiable value up to $400 000: Process in TRO as normal or use this form.
B. Properties of dutiable value between $400 000 and $500 000: Use this form. Full duty must be paid. A refund would not be available until the passage of legislation.
About the Duty Concession
The concession provides a 50 per cent discount on property transfer duty for eligible pensioners who sell their former home in Tasmania and downsize by buying another home in Tasmania. The new property must have a dutiable value of $400 000 or less and also have a dutiable value less than the former home.
Duty concession for pensioners downsizing to a new home in Tasmania is extended to 30 June 2022.
The concession is available where:
- the transfer associated with the sale of the former home completes between 10 February 2018 and 30 June 2022 (inclusive); and
- the transfer associated with the purchase of the new home completes within six months (either before or after) the transfer (selling date) of the former home.
To be eligible for this duty concession, at least one of the purchasers/transferees:
- Must be aged 60 years or over and:
- hold a Pensioner Concession Card; or
- receive a DVA special rate pension; or
- hold a Commonwealth Seniors Health Card.
• Must have occupied the former home as their principal place of residence for at least six months.*
• Intends living in the newly purchased home for at least six months, commencing within 12 months after its purchase.*
• Must ensure that ownership of the newly purchased home is in the same name/names as that for the former home prior to its transfer.*
• The eligible pensioner (or the pensioner's spouse) must not own a home anywhere within Australia at the transaction date other than the former home or new home.
• The eligible pensioner (or the pensioner's spouse) must not have previously received this duty concession.
* The Commissioner has a discretion to vary this requirement in some circumstances.
The home being purchased must:
• be an established home (not vacant land) in Tasmania; and
• have a dutiable value less than that of the former home in Tasmania; and
• have a dutiable value of $400 000 or less.
How to apply
If you are eligible for the duty concession, either the concession may be applied when you purchase your new home or a duty refund will be paid to you (the purchaser) by direct credit to your nominated bank account, if full duty has been paid.