Rebuilding after the bushfires?
If you sadly lost your home in the horrific bushfires recently, please read this article, it may help you. In the wake of the 2019/2020 NSW Bushfires, Revenue NSW has introduced the NSW Bushfire Transfer Duty Relief Scheme.
This scheme is intended for people whose homes were destroyed during the bushfires and who choose to purchase a replacement property elsewhere rather than rebuild. The application period for this scheme is effective from 3 March 2020 up until 2 March 2022.
The result for the applicants who satisfy the requirements of the scheme will either be exempt from the payment of duty, pay a concessional amount of duty or even receive a refund of some or all duty previously paid. Transfer duty relief will be available up to the value of $55,000.00, which is approximately equal to the duty assessed on a property priced around $1,250,000.00. If the value of the property is over $1,250,000.00, the duty payable will be reduced by $55,000.00.
To be eligible for the scheme, an applicant must:
1. have been, or continue to be an owner of a residential property, located in the defined disaster area for the eligible disaster as prescribed by a relevant authority; and
2. the residential property was their principal place of residence when it was destroyed.
Further to this, the dutiable transaction to which relief is sought must be an agreement or transfer to purchase:
1. a home intended to be a principal place of residence to replace the property destroyed, or
2. vacant land that is residential land intended to be used as the site of a replacement property (with construction of a residence to be commence within 6 months from the date of the agreement).
In order to evidence the requirements, Revenue NSW will require the following:
1. title search for the land on which the destroyed property was located
2. evidence that the applicant’s home was destroyed – examples may include:
a. police report;
b. insurance claim form;
c. confirmation from a home insurer that the property is a total loss; and
d. statutory declaration evidencing that the applicant’s home was destroyed.
Should you have any further questions, please feel free to contact Peter Crittenden on pcrittenden@marsdens.net.au or access the below link for more information: https://www.revenue.nsw.gov.au/taxes-duties-levies-royalties/transfer-duty/bushfire-duty-relief
The contents of this publication are for reference purposes only. This publication does not constitute legal advice and should not be relied upon as legal advice. Specific legal advice should always be sought separately before taking any action based on this publication.
