60Eligible cardholder exemption or concession

60 Eligible cardholder exemption or concession (1) A transfer of dutiable property is exempt from duty if— S. 60(1)(a) substituted by No. 50/2024 s. 27(1). (a) the requirements specified in section 60AA are satisfied at the time of the transfer; and (b) the dutiable value of the dutiable property the subject of the transfer is not more than $600 000; and (c) the contract for the purchase of dutiable property is entered into on or after 1 July 2023. (2) A concession from duty under this Chapter applies to a transfer of dutiable property if— S. 60(2)(a) substituted by No. 50/2024 s. 27(2). (a) the requirements specified in section 60AA are satisfied at the time of the transfer; and (b) the dutiable value of the dutiable property the subject of the transfer is more than $600 000 but not more than $750 000; and (c) the contract for the purchase of dutiable property is entered into on or after 1 July 2023. (3) For the purposes of subsection (2), the concessional amount of duty payable is an amount calculated in accordance with the following formula— **B** is the amount of duty paid or payable (but for this section) on the transfer. (4) If the transfer is of a partial interest in dutiable property, the dutiable value of the dutiable property for the purpose of determining an entitlement to an exemption or concession under this section is the unencumbered value of the whole of the dutiable property at the time of the transfer. S. 60AA inserted by No. 18/2023 s. 16, amended by No. 38/2023 s. 9, substituted by No. 50/2024 s. 28. 60AA Eligible cardholder exemption or concession requirements (1) For the purposes of section 60, the requirements are— (a) if the dutiable property is acquired by one or more transferees acting only in their personal capacity, the requirements in subsection (2); or (b) if the dutiable property is acquired by a guardian on behalf of a person under a legal disability, the requirements in subsection (3); or (c) if the dutiable property is acquired by a trustee of a special disability trust on behalf of the principal beneficiary of that trust, the requirements in subsection (4). (2) For the purposes of subsection (1)(a), the requirements are— (a) that at least one transferee is an eligible cardholder who acquires an interest in the dutiable property of 25% or more; and (b) that each transferee is a bona fide purchaser of an estate in fee simple in land for adequate consideration; and (c) that each transferee has not received an exemption, refund or rebate of duty in respect of a transfer— (d) that each transferee and their partner (if any) has not previously received an exemption or concession from duty on a dutiable transaction under section 60 on or after 1 July 2023; and (e) that an eligible cardholder referred to in paragraph (a) intends to occupy the land in accordance with the residence requirement. (3) For the purposes of subsection (1)(b), the requirements are— (a) that the person under a legal disability is an eligible cardholder; and (b) that the guardian is a bona fide purchaser of an estate in fee simple for adequate consideration; and (c) that the person under a legal disability has not received an exemption, refund or rebate of duty in respect of a transfer— (d) that the person under a legal disability and their partner (if any) has not previously received an exemption or concession from duty on a dutiable transaction under section 60 on or after 1 July 2023; and (e) that no guardian has previously received, on behalf of the person under a legal disability, an exemption or concession from duty on a dutiable transaction under section 60 on or after the commencement of section 28 of the **State Taxation Further Amendment Act 2024**; and (f) that the person under a legal disability intends to occupy the land in accordance with the residence requirement. (4) For the purposes of subsection (1)(c), the requirements are— (a) that the principal beneficiary is an eligible cardholder; and (b) that the trustee is a bona fide purchaser of an estate in fee simple for adequate consideration; and (c) that the principal beneficiary has not received an exemption, refund or rebate of duty in respect of a transfer— (d) that the principal beneficiary and their partner (if any) has not previously received an exemption or concession from duty on a dutiable transaction under section 60 on or after 1 July 2023; and (e) that no trustee has previously received, on behalf of the principal beneficiary, an exemption or concession from duty on a dutiable transaction under section 60 on or after the commencement of section 28 of the **State Taxation Further Amendment Act 2024**; and (f) that the principal beneficiary intends to occupy the land in accordance with the residence requirement. S. 60AAB inserted by No. 18/2023 s. 16. 60AAB Residence requirement (1) It is a requirement for the purposes of an exemption or concession under section 60 that an eligible cardholder occupies the land as the eligible cardholder's principal place of residence— (a) in the case of land referred to in section 59(1)(a), for a continuous period of at least 12 months commencing within the 12 month period immediately after the eligible cardholder became entitled to possession of the land; or (b) in the case of land referred to in section 59(1)(b), for a continuous period of at least 12 months commencing within the 12 month period immediately after the earlier of— (i) the date on which the eligible cardholder was lawfully first able to use the building as a place of residence; or (ii) the date that is 24 months after the eligible cardholder became entitled to possession of the land. (2) Subject to subsection (3), if there are 2 or more eligible cardholders, the residence requirement is complied with if the land is occupied for the period referred to in subsection (1) as the principal residence of at least one of them (whether separately or together with any of the others and whether or not the same eligible cardholder occupies the land for the whole period). (3) The land must be occupied, at any given time during the period referred to in subsection (1), by an eligible cardholder who has an interest in the dutiable property of 25% or more of the dutiable value. (4) In determining whether land is occupied as the principal place of residence of an eligible cardholder, account must be taken of every place of residence of the eligible cardholder, whether in Victoria or elsewhere. S. 60AAC inserted by No. 18/2023 s. 16. 60AAC Variation of residence requirement (1) If satisfied that there is a good reason for doing so, the Commissioner may— S. 60AAC(2) amended by No. 50/2024 s. 29. (2) If the Commissioner determines that a temporary absence from residence does not break the continuity of residence, a transferee referred to in section 60AA(1)(a), (b) or (c) is not entitled to an exemption or concession under section 60 in respect of another transfer during the period of temporary absence unless the transferee pays duty on the original transfer at the rate set out in section 28(1), subject to any other exemption or concession. (3) If an eligible cardholder who is occupying land the subject of a transfer as the eligible cardholder's principal place of residence, or who is temporarily absent from the land in accordance with a determination under subsection (1), dies, the residence requirement is taken to have been complied with for the transfer. S. 60AAD inserted by No. 18/2023 s. 16. 60AAD Liability for duty if residence requirement not complied with (1) If the residence requirement for an exemption or concession under section 60 is not complied with— (a) the transfer is chargeable with duty at the rate set out in section 28(1), subject to any other exemption or concession; and (2) A liability for duty imposed because of subsection (1) on the transfer arises when the residence requirement for that transfer is not complied with. Section 16 provides that a tax default does not occur if the duty is paid within 30 days after the liability for the duty arises. (3) A reassessment referred to in subsection (1)(b) is authorised if more than 5 years have passed since the initial assessment was made. Section 9(3)(c) of the **Taxation Administration Act 1997** allows a reassessment to be made more than 5 years after the initial assessment if this is authorised by a taxation law. S. 60AAD(4) substituted by No. 50/2024 s. 30. (4) If the residence requirement for an exemption or concession under section 60 is not complied with— (a) a transferee who received the exemption or concession in their personal capacity is not entitled to an exemption or concession under that section in respect of any other transfer until the duty imposed because of subsection (1) has been paid; (b) if a transferee received the exemption or concession as a guardian on behalf of a person under a legal disability, the guardian in that capacity, any subsequent guardian in that capacity or the person themselves (whether or not they continue to be under a legal disability) is not entitled to an exemption or concession under that section in respect of any other transfer until the duty imposed because of subsection (1) has been paid; (c) if a transferee received the exemption or concession as a trustee of a special disability trust on behalf of the person who is the principal beneficiary of that trust, the trustee in that capacity, any subsequent trustee in that capacity or the person themselves (whether or not they continue to be a principal beneficiary of a special disability trust) is not entitled to an exemption or concession under that section in respect of any other transfer until the duty imposed because of subsection (1) has been paid. S. 60AAE inserted by No. 18/2023 s. 16. 60AAE Persons must notify Commissioner of change in circumstance (1) A person who has received an exemption or concession from duty under section 60 must lodge a written notice with the Commissioner within 30 days after becoming aware of any circumstances that may result in the residence requirement not being complied with. (2) A failure of the person to comply with subsection (1) does not affect the Commissioner's power to exercise a discretion under section 60AAC or to reassess duty under section 60AAD. S. 60A (Heading) amended by Nos 18/2023 s. 17(1), 38/2023 s. 10(1). S. 60A inserted by No. 46/2004 s. 9, amended by Nos 31/2008 s. 10(2), 37/2009 s. 8, 36/2010 s. 10, substituted by No. 28/2011 s. 15.