The pensioner exemption or concession can only be claimed by holders of the eligible concession cards at the date of the transfer.
The pensioner exemption or concession applies if the purchase price or share of the purchase price does not exceed $750,000.
Information relating to the pensioner exemption and concession is available on our website.
All section numbers are references to the Duties Act 2000.
Associated and/or related persons (section 3)
Associated and/or related persons include, but are not limited to, relatives and related bodies corporate. Some examples include:
- Spouses, domestic partners, parents, grandparents, children, aunts, uncles, nieces, nephews, adopted or step children of a person.
- Business relationships including partnerships and companies who are related by common shareholders/directors.
- Trusts and their beneficiaries or trusts with common beneficiaries.
- Natural persons and companies where the person is the majority shareholder or director of that company or a related body corporate.
Eligible pensioners (section 58)
To qualify as an eligible pensioner, you must, at the time of the transfer:
- Hold a relevant concession card (no cards other than those listed below entitle you to this exemption or concession and we will verify your concession status, at the date of the transfer, with Human Services or Department of Veterans Affairs) being a:
- Repatriation Health Card – Gold Card (issued by the Department of Veterans Affairs and must be issued in Victoria), or
- Pensioner Concession Card (issued by the Department of Veterans Affairs and must be issued in Victoria), or
- Pensioner Concession Card (issued by Human Services), or
- Health Care Card (issued by Human Services), or
- Commonwealth Seniors Health Care Card (issued by Human Services or the Department of Veterans Affairs, see website for further details).
- Be a bona fide purchaser of land for adequate consideration (i.e. market value).
- Intend to reside in a dwelling on the land as your principal place of residence (PPR).
- Not have received an exemption, refund or rebate in respect of a transfer of land under sections 59 and 60 of the Duties Act 2000 or under section 71A of the Stamps Act 1958.
Land use entitlement (section 10(1)(a)(v))
A land use entitlement is an entitlement to occupy land in Victoria conferred through an ownership of shares in a company or units in a unit trust scheme, or a combination of a shareholding or ownership of units together with a lease or licence.
Pensioner exemption or concession (sections 58-60A)
An exemption or concession from duty is available for eligible pensioners who have purchased land and a dwelling if they:
- hold a concession card at the date of transfer, and the
- contract for the purchase of the land and/or dwelling was entered into on or after 1 July 2012.
Where a dwelling is to be constructed on the land, the pensioner exemption/concession will only apply upon completion of the dwelling, and
- The dutiable value of the land and dwelling is:
- not more than $330,000 – a full exemption, or
- more than $330,000 but does not exceed $750,000 – a concession on a sliding scale.
Where there is a dwelling on the land at the time of transfer, the dutiable value is the greater of the consideration or the market value.
Where the land is vacant at the time of the transfer, a dwelling on the land must be completed within three (3) years of the transfer. The dutiable value in that case is the greater of the consideration or the market value of the land plus the construction cost of the dwelling. You can only apply for a refund of duty on the transfer if a dwelling is constructed within the three year period.
If you are eligible for the pensioner exemption or concession, you will automatically be given the PPR concessional rate of duty.
Proof of payment and evidence of market value
For transfers where the vendor and the purchaser are associated or related persons, the following documents must be produced with this form:
- Proof of payment of the purchase price, for example bank statements, loan agreements and receipts.
- Evidence of the market value of the property:
- a letter of appraisal from a licensed real estate agent, or
- a valuation by a certified practising valuer who is a member of the Australian Property Institute or by a member of the Real Estate Institute of Victoria with sworn valuer accreditation.
Purchase of fractional interest in the property
Where two or more people buy a PPR property, each person’s proportion of ownership is known as their interest in the property. The interests in the property are specified in the contract of sale. If the contract of sale does not specify each person’s interest, each person is treated as having an equal share of ownership in the property. Whether an exemption or concession is available for the eligible pensioner depends on the value of their interest in the property (i.e. whether it is more than $330,000 or does not exceed $750,000).