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Stamp Duty on Penalty Interest

Stamp Duty on Penalty Interest

Stamp Duty & Penalty Interest

The Victorian State Revenue Office has announced that from 1 July 2022, where a purchaser incurs penalty interest as a consequence of default, they may be required to pay additional stamp duty. 

As an interim position (within 12 months from 1 July 2022), this will apply to you if you enter into a contract of sale on or after 1 July 2022 and incur penalty interest of $5,000.00 or more as a consequence of failing to settle on the due date. In this situation, you must notify the SRO within 30 days of settlement and re-lodge the transaction for reassessment of duty. 

 In the interim period, the penalty interest accrued due to late settlement will not form part of the dutiable value of the land for the purposes of determining eligibility for;

  • Principle place of residence concession;
  • First home buyer duty exemption or concession;
  • Off-the-plan concession;
  • Pensioner concession;
  • Young farmer exemption or concession; and
  • First Home Owner Grant

If you have any questions please contact our friendly team on 03 5292 1994.