The Victorian government has announced in its 2017 budget that it plans to abolish, from 1 July 2017, the spouse to spouse duty exemption, unless it is a transfer of a principal place of residence or a transfer as a result of a relationship breakdown.
This means that anyone thinking about transferring such a property between spouses (eg an investment property or a holiday home) should consider doing so before 1 July 2017.
Common reasons for transferring properties between spouses include:
To protect properties from claims (eg creditor, family law or estate claims);
Land tax savings; and
Tax splitting.
Of course, no such transfer should occur without considering non-duty issues such as the capital gains tax and land tax consequences.
To discuss this further or for more information please contact:
Phil Broderick
Principal
Sladen Legal
T +61 3 9611 0163 l M +61 419 512 801
Level 5, 707 Collins Street, Melbourne, 3008, Victoria, Australia
E: pbroderick@sladen.com.au
Melissa Colaluca
Associate
Sladen Legal
T +61 3 9611 0161
Level 5, 707 Collins Street, Melbourne, 3008, Victoria, Australia
E: mcolaluca@sladen.com.au