澳洲Australia property Lease Options in Victoria and stamp duty
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We would like to let everyone know of some very exciting news that will effect the majority of property investors, especially those in Victoria, or those with properties in Victoria.
Finding good lawyers that are pro active for their clients is sometimes more than a little hard to find, however Lewis O'Brien has always been on the front line when it comes to Vendor Finance especially in Victoria.
As many property investors in Victoria would know the State Government in their infinite wisdom decided to introduce stamp duty on Options to purchase real estate if there is a Lease attached. This stamp duty is payable on the entire option amount and due upfront. This, compared to other states, where the stamp duty payable was based on the option fee paid. Given that stamp duty in Victoria is generally paid at 'transfer of title' this seemed a totally illogical step. However what is; is!
Not willing to just sit back and accept this move the Siacci’s have been working with Lewis O’Brien to try and get the State Revenue Office to listen to our argument and achieve a positive and usable outcome for the use of Lease Options in Victoria.
After much effort, by doing a Lease Option and submitting it, our request HAS been heard and we now have a 'private ruling' on the situation regarding stamp duty which opens the doors to a' general tax ruling' on one of our own property transactions.
The general theme of the ruling goes like this:
Stamp duty on a lease/ option agreement is payable but is able to be deferred until the option is 'exercised'. if you take this option (which you will) to the SRO, the SRO requests that you pay 4.8% interest on the unpaid stamp duty amount.
Bonus: the interest can also be deferred until you 'exercise' the option. By using the correctly structured clauses in your paperwork this allows for only the required stamp duty to be paid at the logical time...when you exercise the option to purchase!
It is essential that when you purchase a property on a lease option and go on to sell the house on 'terms' using a lease option that the paperwork is set up exactly 'right' so we request that if you would like to use the new lease option paperwork that Lewis O’Brien has drawn up the you can contact him on the usual manner.
Lewis O'Brien and associates
03 9888 6388
This is definitely a giant step in the right direction to resolving the stamp duty issue.
We would like to thank Lewis for working tirelessly to improve he situation for the vendor Finance community as a whole.
David and Julie Siacci