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.
Further information about these latest amendments can be found at: https://www.consumer.vic.gov.au/housing/buying-and-selling-property/selling-property/conveyancing-and-contracts-for-sellers
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