From next financial year, July 1 the government will close a property loophole. Property transfers between partners will no longer be exempt from stamp duty in Victoria. Exemptions will still apply for principal place of residence and for transfer of properties following a relationship breakdown.
It is estimated about 3000 people a year use such an arrangement.
This change in policy is estimated to bring in $20 million a year to the state of Victoria according to Treasurer Tim Pallas. Overall this will bring Victoria’s policy on property transfers between spouses in line with other states and close tax loopholes.
This new change will be implemented from July 1 this year.