28 May 2019
Victoria and Tasmania have maintained their existing pensioner stamp duty relief programs, in a welcome move which will help seniors to downsize from the family home.
Tasmanian pension downsizing incentive
As part of its 2019-20 budget handed down on 23 May, the Tasmanian Government announced it will be spending a further $1.2 million on its pension downsizing incentive in 2019-20.
The incentive was due to finish on 30 June, 2019, but now will be extended to 30 June, 2020.
Through the incentive, pensioners have the opportunity to claim a 50 per cent stamp duty discount worth up to $7,000 if they sell their family home in Tasmania and downsize into another property in the State with a lesser value worth under $400,000.
The family home will need to have been sold by 30 June, 2020, and the new home purchased within six months of this, for the incentive to be claimed.
There are a number of other terms and conditions, so it is well worth checking out the detail.
The Tasmanian Government introduced the incentive in February 2018 to support seniors to move into more suitable accommodation, and by doing this free-up the supply of larger family homes into the real estate market.
Tasmania’s Treasurer Peter Gutwein confirmed to Downsizing.com.au in February that, as of 31 December 2018, some 149 pensioners had received a stamp duty concession. The average stamp duty cut received by these pensioners was $4,673.
Last week, in a budget media release, Mr Gutwein cited the downsizing incentive extension and other measures introduced in the budget as “maintaining the momentum in Tasmania’s nation leading building and construction sector to help more Tasmanians into a home of their own.”
Victorian pension stamp duty relief program
Separately, the Victorian Government, as part of its 2019-20 budget handed down on 27 May, announced that it would be continuing its stamp duty relief for eligible pensioners, despite collapsing stamp duty revenues due to the falling property market.
As part of this relief program, pensioners get a full exemption from stamp duty for homes valued up to $330,000, with a discount available for homes valued from $330,001 to $750,000.
This program is expected to cost the government $91m in 2019-20, and increase to $109m in 2022-23.
Search for downsizing-friendly properties in Victoria here.
Meanwhile, the Western Australian Government, as part of its 2019-20 budget, flagged that it would introduce a similar incentive when the State’s budget situation improved.
Downsizing.com.au will be providing a comprehensive overview of stamp duty and other government incentives for downsizing across Australia, once the State budget season concludes at the end of June.
By Mark Skelsey, News Editor of Downsizing.com.au. Please email Mark at [email protected]