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: