Purchases from the Housing Authority
On 15 May 2026, Tom and Kate enter into a contract to purchase a house and land package from the Housing Authority. Tom and Kate will acquire a 60% interest in the land for consideration of $144,000, while the Housing Authority will retain the other 40% interest.
Duty is assessed at $2,964 under the general rate.
In this example:
Seller: Housing Authority
Buyer: Tom and Kate - 60% or 6/10 shares
Dutiable value: $144,000 Duty payable by Tom and Kate: $2,964
On 20 May 2026, first home buyers Joe and Mary enter into a contract to purchase a 60% interest in an established home from the Housing Authority who will retain the other 40%. Joe and Mary pay $510,000 which equates to 60% of the total value of the property ($850,000).
The transaction cannot be assessed at the FHOR of duty as the total value of the property exceeds the allowable threshold; however the amount of duty payable at the general rate on the consideration of $510,000 is $18,240.
Note - this would be assessed the same way as the example above.
In this example:
Seller: Housing Authority
Buyer: Joe and Mary - 60% or 6/10 shares
Dutiable value: $510,000 Duty payable by Joe and Mary: $18,240
On 20 May 2026, first home buyers Joe and Mary enter into a contract to purchase a 60% interest in an established home from the Housing Authority who will retain the other 40%.
Joe and Mary pay $376,800 which equates to 60% of the total value of the property ($628,000)
Although they are not entitled to receive the FHOG as the contract is for the purchase of an established home, the amount payable at the FHOR of duty is $4,522. Joe and Mary are required to pay duty of $2,713.20 (60% x $4,522).
In this example:
Seller: Housing Authority - 40% or 4/10 shares
Buyer: Joe and Mary - 60% or 6/10 shares
Dutiable value: $628,000 Excluded portion: 40%
Duty payable by Joe and Mary: $2,713.20
Housing Authority repurchasing a partial interest in a property
Tom and Kate hold an 80% interest in a property and the Housing Authority holds the remaining 20%. On 15 May 2026, the Housing Authority acquires an additional 10% interest in the property for consideration of $40,000. As the Housing Authority is an exempt body, no duty is payable.
Note – a section 92 exemption applies.
In this example:
Seller: Tom and Kate
Buyer: Housing Authority - 10% or 1/10 shares
Dutiable value: $40,000 Exemption: 10%
Duty payable by the Housing Authority: $nil
Tom and Kate hold an 80% interest in a property and the Housing Authority holds the remaining 20%. On 15 May 2026, the Housing Authority acquires Tom and Kate’s 80% interest for $360,000. As the Housing Authority is an exempt body, no duty is payable.
Note – a section 92 exemption applies.
In this example:
Seller: Tom and Kate
Buyer: Housing Authority - 80% or 4/5 shares
Dutiable value: $360,000 Exemption: 80%
Duty payable by the Housing Authority: $nil
Purchase of a further interest from the Housing Authority
Tom and Kate had previously acquired an 80% interest in a property with the Housing Authority having acquired the other 20%.
On 15 May 2026, they purchase the remaining 20% interest from the Housing Authority for $112,500.
Tom and Kate are liable to pay duty of $2,137.50 at the general rate.
In this example:
Seller: Housing Authority
Buyer: Tom and Kate - 20% or 1/5 shares
Dutiable value: $112,500 Duty payable by Tom and Kate: $2,137.50
On 1 August 2023, first home buyers Joe and Mary entered into a contract to purchase an established home for $420,000 with the Housing Authority under a shared equity arrangement. Joe and Mary acquired a 70% interest for consideration of $294,000 and the Housing Authority acquired the other 30% interest for consideration of $126,000.
Joe and Mary were approved for the FHOG and, as the unencumbered value of the property did not exceed the $430,000 threshold that existed at the time of that contract, they were not required to pay any duty on the acquisition.
On 20 May 2026, Joe and Mary enter into a contract to purchase the remaining 30% interest from the Housing Authority for $200,000. This transaction qualifies as a further concessional transaction and will be assessed at the FHOR of duty using the same rates and thresholds that existed at the time of the original contract irrespective of the increased value of the property.
In this example:
2023 acquisition:
Buyer: Joe and Mary - 70% or 7/10 shares
Housing Authority - 30% or 3/10 shares
Dutiable value: $420,000 Exemption: 30%
Duty payable by Joe and Mary: $nil
2026 acquisition:
Seller: Housing Authority
Buyer: Joe and Mary - 30% or 3/10 shares
Dutiable value: $420,000 Duty payable by Joe and Mary: $nil
Duty deduction: $nil as no duty was paid on the 2023 acquisition
On 1 August 2023, first home buyers Joe and Mary entered into a contract to purchase an established home for $500,000 with the Housing Authority under a shared equity arrangement. Joe and Mary acquired a 70% interest for consideration of $350,000 and the Housing Authority acquired the other 30% for consideration of $150,000.
Joe and Mary were approved for the FHOG which, at the time, provided that no duty was chargeable for established homes up to the value of $430,000. They paid $9,403.10 (70%) of the $13,433 duty at the FHOR as the unencumbered value of the property exceeded the $430,000 threshold.
On 20 May 2026, they entered into a contract to purchase the remaining 30% interest in the property from the Housing Authority for $230,000. This transaction qualified as a further concessional transaction and was assessed at the FHOR of duty using the same rates, thresholds and consideration that existed at the time of the original contract irrespective of the increased value of the property.
The amount of duty they had already paid in respect of the acquisition was deducted from the total amount of duty chargeable, so Joe and Mary were required to pay $4,029.90 (i.e. $13,433 - $9,403.10).
In this example:
2023 acquisition:
Buyer: Joe and Mary - 70% or 7/10 shares
Housing Authority - 30% or 3/10 shares
Dutiable value: $500,000 Exemption: 30%
Duty payable by Joe and Mary: $9,403.10
2026 acquisition:
Seller: Housing Authority
Buyer: Joe and Mary - 30% or 3/10 shares
Dutiable value: $500,000 Duty payable by Joe and Mary: $4,029.90
Duty deduction: $9,403.10 as this was the duty paid for the 2023 acquisition
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