In an attempt to make the property sale process more transparent for buyers, amendments to the Victorian Government’s Sale of Land Act 1962 came into effect on the 1st January, 2024.
The changes affect the way vendors and purchasers currently share the cost of land tax and windfall gains tax. Presently, the contract of sale can apportion the vendor’s land tax or windfall gains tax costs to the buyer. But as of the 1st of January, legislative change now prevents vendors from passing on land tax and option agreements with respect to windfall gains tax to the buyer in the contract of sale, where:
- The sale price of their property is less than $10 million (with respect to land tax). The $10 million threshold will be adjusted annually in accordance with CPI from 1 January 2025.
- A windfall gains tax liability has been assessed before the vendor signs the contract of sale or option agreement.
The changes apply to contracts of sale (and windfall gains tax option agreements) signed on or after 1 January 2024 and do not affect contracts of sale signed, or windfall gains tax options agreements made, before that date.
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By Wendy Chamberlain
Copyright 2024 | All Rights Reserved
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With a passion for all things real estate spanning 20 years, Wendy loves that her role as a Buyers and Sellers Advocate gives her buying and selling clients an experienced voice they can trust when it comes to negotiating to buy or sell something as important as their home or investment. Wendy considers it a privilege to be asked to help others realise such an important goal as home ownership and to be trusted with that honour. Get in touch today via www.chamberlainadvocates.com.au for a no obligation chat about how Wendy can work with you and help you save time and money to secure your new home sooner.