Blog
Sep 21, 2014
How to win $800 back off the state government
Most of us really look forward to getting a tax refund every year. There's just something very satisfying about getting some of your own money back from the government!
Well, if you buy a vacant block of land you will pay Transfer Duty (formerly stamp duty) at the General Rate, which slugs you at a higher rate than the Residential Rate, which obviously applies to properties with a residential dwelling on them.
But, when you commence construction of a residential dwelling on the land, you can apply for reassessment of the Duty at the Residential Rate.
At typical prices for vacant land in Kalgoorlie-Boulder the difference is around $800 - $900. Which might as well be in your pocket! If you're buying vacant land in Perth, the difference can be thousands.
All you have to do is fill in the Residential rate application form and send it into the Office of State Revenue along with the stamped contract of sale and they will send you back your contract along with a big fat government cheque.
And the best part, you've got 5 years from the date you entered into the contract to claim!
This is why, after settlement, we send buyers of vacant land a completed application form along with the duty-endorsed contract and instructions to get their refund. It's just another very good reason to do business with Goldfields Settlements - we're always on your side.
If you'd like assistance finding the form or filling it out, drop in and we'll give you a hand.
DISCLAIMER: The above advice is intended to provide a summary and is not intended to be relied on in any particular case. It should NOT be construed as legal advice. For detailed advice specific to your circumstances you should seek specific advice from an appropriately qualified professional.