In the line of duty

Retirement village leases will continue to be exempt from stamp duty in Western Australia, the WA Office of State Revenue has confirmed.

Property Council WA sought, and received, assurances from the Office of State Revenue that the Revenues Laws Amendment Act 2019 and changes to the Duties Act, finalised in June, would not change the treatment of leases in retirement villages.

The Commissioner for State Revenue confirmed the “amendments have not altered the duty treatment of leases in retirement villages”.

The reassurance was in response to Property Council WA advocacy on behalf of members concerned that changes — which could have caught retirement village operators unawares — would oblige them to charge and collect stamp duty on the transfer of retirement village leases.

However, where the retirement village occupancy is under a licence, the Office of State Revenue says it is the details of the licence will “determine if the new provisions apply”.

In this case, it recommends operators make contact, with details of the licence and residence contracts, to allow it to work out the “duty implications”.