Young farmers considering purchasing their first piece of farmland should be aware of potential stamp duty savings available. This Victorian Government scheme has now been in place for some time, but has received little publicity. Consequently, very few farmers have accessed the concession.
This scheme offers first time purchases of farm land a full stamp duty exemption on farming land costing less than $300,000, potentially saving up to $13,070 in stamp duty.
Purchases between $300,000 and $600,000 will also attract a $13,070 in stamp duty reduction.
This reduction quickly phases out for purchases exceeding $600,000, with no reduction being on land purchases up to $750,000.
It is also possible to apply the exemption if the farm land is purchased in a trust or company. However there are additional eligibility criteria which apply in these circumstances.
Naturally this scheme does not apply to transfers or purchases within the family group as a full stamp duty exemption is available on transfer of farming land to family members.