Land and improvements
Description
People who purchase property (houses, land, land and improvements or commercial premises) located in the ACT must pay duty on that purchase.
The lodgment for duty of interdependent land and building contracts will continue to be assessed as off the plan agreements. For further information see Off the plan agreements, assessment of duty [RTF, 135Kb], [PDF, 157Kb].
Duty amount
Duty is calculated on the greater of the purchase price or the market value of the property. These rates of duty are often referred to as conveyance rates. The rates of duty and thresholds changed on 6 June 2012. The rates and thresholds that apply depend on the transaction date.
The transaction date is the date of grant, transfer, or agreement for transfer (whichever is first). This is the date of first execution of an agreement or transfer, not the settlement date.
Transaction dates from 6 June 2012
|
Value of Property |
Duty Payable - transaction dates from 6 June 2012 |
|---|---|
| up to $200,000 | $20 or $2.40 per $100 or part thereof, whichever is greater |
| $200,001 to $300,000 | $4,800 plus $3.75 per $100 or part thereof by which the value exceeds $200,000 |
| $300,001 to $500,000 | $8,550 plus $4.75 per $100 or part thereof by which the value exceeds $300,000 |
| $500,001 to $750,000 | $18,050 plus $5.50 per $100 or part thereof by which the value exceeds $500,000 |
| $750,001 to $1,000,000 | $31,800 plus $6.50 per $100 or part thereof by which the value exceeds $750,000 |
| $1,000,001 and over | $48,050 plus $7.25 per $100 or part thereof by which the value exceeds $1,000,000 |
Transaction dates before 6 June 2012
|
Value of Property |
Duty Payable - transactions dates before 6 June 2012 |
|---|---|
| up to $100,000 | $20 or $2.00 per $100 or part thereof, whichever is greater |
| $100,001 to $200,000 | $2,000 plus $3.50 per $100 or part thereof by which the value exceeds $100,000 |
| $200,001 to $300,000 | $5,500 plus $4.00 per $100 or part thereof by which the value exceeds $200,000 |
| $300,001 to $500,000 | $9,500 plus $5.50 per $100 or part thereof by which the value exceeds $300,000 |
| $500,001 to $1,000,000 | $20,500 plus $5.75 per $100 or part thereof by which the value exceeds $500,000 |
| $1,000,001 and over | $49,250 plus $6.75 per $100 or part thereof by which the value exceeds $1,000,000 |
If you are purchasing a home and/or land you may be eligible for Home buyer assistance.
Other forms of assistance for eligible purchasers include:
Compliance obligations/requirements
Purchasers or their legal representative are required to lodge the contract for the purchase of the property and pay the duty within 90 days of the liability arising, e.g. execution (signing) of the contract. You should be aware that giving false or misleading information is a serious offence. Compliance activities include:
- checking assessment information;
- checking that dutiable values (the higher of the consideration or the market value);
- checking GST components and the cost of off-site works);
- reviewing off-the-plan property sales for the treatment of improvements;
- identifying transactions liable to aggregation;
- checking exemptions and concessions (e.g. corporate reconstructions)
- reviewing high value transfers; and
- checking complex transactions (trusts, long-term leases, franchise agreements, partnership acquisitions, certain goods, options to purchase land, and certain land use entitlements).
Further information is available at Compliance.
Documents required on lodgment
A completed Conveyance Lodgment Form and the contract for the purchase of the property containing the vendor's (selling party) signature or both signatures is required. You may also lodge the Memorandum of Transfer with the purchaser's (buying party) signature at the same time or any time prior to settlement.
NOTE: Your contract and a Memorandum of Transfer must be stamped by the ACT Revenue Office before the Registrar of Land Titles will place your name on the title of the property.
Easy Lodge Scheme
Easy Lodge allows for payment and franking of documents at the ACT Revenue Office without waiting for an assessment to be issued. The scheme is restricted to approved clients and is limited to simple transactions for:
- residential land only (RLA); or
- residential land and improvements (RLI).
Further details about Easy Lodge is provided in the Easy Lodge Information Sheet. If you wish to use Easy Lodge you must register using the Easy Lodge Registration Form and your registration must be approved. Each Easy Lodge transaction must be accompanied by a completed Easy Lodge Form (rather than the usual Conveyance Lodgment Form).
Relevant links
- Record keeping
- Calculator - Land and improvements duty - from 6 June 2012
- Calculator - Land and improvements duty - before 6 June 2012
- Conveyance Lodgment Form (external site)
- Statement of Change in Beneficial Ownership to be completed where there is no document executed (external site)
- Easy Lodge Scheme circular GEN002 [RTF, 1.5Mb], [PDF, 46Kb]
- Easy Lodge Registration Form (external site)
- Easy Lodge Form (external site)
- Determination of duty rates (excluding motor vehicles) - DI2012-95
- Special Disability Trust duty exemption
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| Contact us | |
|---|---|
| Online Feedback | Advice and Assessments |
| Telephone | (02) 6207 0028 9:00am to 5:00pm Monday - Friday (excluding ACT public holidays) |
| Facsimile | (02) 6207 0026 |
Exchange of information
To assist in the identification and assessment of ACT taxes and grants we exchange information with other Revenue Offices and the Australian Taxation Office (ATO).
The exchange of information with other Revenue Offices is in accordance with part 9 of the Taxation Administration Act 1999 (ACT) and similar legislation in the States and the Northern Territory. The exchange of information with the ATO is in accordance with subsection 355-65 (5) Schedule 1 of the Taxation Administration Act 1953 (Cth).
