| The Victorian State Revenue Office announced that as of 1 July 2022 Late Settlement Interest (LSI)where it is $5k or more and the contract was entered into after 1 July 2022 be subject to stamp duty where it arises from a delayed settlement. In Victoria, penalty interest is 2% pa above the interest pursuant to the Penalty Interest Rates Act (Vic) 1983 (currently at a rate of 10%) although some contracts apply a higher rate.<\/strong> \u00a0The SRO state that from 1 July 2022, for 12-month period you may need to re-lodge for reassessment if the LSI is $5,000.00 or more.<\/strong> At present, transactions that incur additional consideration resulting in Late Settlement Interest of less than $5,000.00 do not need to be re-lodged for reassessment. The SRO confirm in this 12 month period, LSI will not be part of the dutiable value ( as the concessions are based on the purchase price being below a certain amount in determining\u00a0 eligibility for concessions and exemptions for:<\/strong> Principal place of residence concession;<\/strong> First home buyer duty exemption, concession or reduction;<\/strong> Off-the-plan concession;<\/strong> Pensioner concession;<\/strong> Young farmer exemption or concession; and<\/strong> First Home Owner Grant.<\/strong> You can still settle a transaction on the duty calculation without the LSI but then you must notify the SRO within 30 days of settlement by re-lodging for reassessment and if you fail to do so the SRO may charge penalties. For more information, contact our property team on 9510 9888 <\/strong><\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n <\/p>\n\n\n\n <\/p>\n","protected":false},"excerpt":{"rendered":" |