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Effective from 1 January 2024, the Sale of Land Act 1962 has been amended to prohibit the apportionment of land tax between the purchaser and the vendor at settlement, unless the property has been sold for the threshold amount or more ($10,000,000 in 2024, indexed by the CPI in subsequent years).
- This is good news for purchasers, especially those buying from investors or developers, if they intend to live at the property and would avoid land tax themselves under the principal place of residence exemption.
- Any land tax owed by the vendor will be paid off at settlement out of the sale proceeds, i.e. using the vendor’s money.
- The prohibition applies to all contracts signed on or after 1 January 2024.
For more information about the apportionment of land tax between the vendor and the purchaser, please contact Glenferrie Conveyancing in Northcote on 03 9815 2351.