Transaction Duty - Home & First Home Concessions

Recent discussions with the Office of State Revenue ("OSR") have brought to light the fact that the Commissioner is currently reviewing the provisions of the Duties Act 2001 (Chapter 2 Part 9) in relation to their application to Instalment Contracts.

The issue relates to the interpretation of certain sections of that Part.  If the proposed new interpretation of those provisions is adopted by the Commissioner then the availability of not only the First Home Concession but also the Home Concession to buyers under an Instalment Contract is at risk of not being available to them. If an Instalment Contract buyer can't get a home concession, it may mean that they may not be able to proceed with the trancsaction because of the full Transaction Duty liability.

The problem can potentially be solved but this requires careful structuring and drafting of the Instalment Contract terms and conditions.


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