When purchasing a property in Queensland, an amount of transfer duty (aka. stamp duty) must be paid to the government. The amount is based on the purchase price on the contract. The good news is there are certain situations when you may qualify for a concession.
Are you buying your first home?
The largest concession is available to first home buyers who satisfy the following conditions:
- You have never claimed the First Home or First Home Vacant Land concession;
- You have never held an interest in residential property anywhere in Australia or overseas;
- You are at least 18 years of age;
- If the residence is valued between $500,001 and $549,999, you must be paying market value;
- You will move into the property as your principal place of residence (e.g. move in with your personal belongings and live there on a daily basis) within 1 year of settlement and live there for at least 12 consecutive months;
- You must not dispose of (sell, transfer, lease or otherwise grant exclusive possession) all or any part of the property from the date of settlement to the expiry of the 12 month period that you live in the property as your principal place of residence;
- You must not dispose of all or any part of the property before you move in;
- You must not demolish the home without living there first; and
- You must ensure any existing tenants move out when their lease expires or within 6 months of settlement, whichever is the earlier. Previous owners who continue to stay in the property must also move out within 6 months.
If you meet the above criteria and purchase a first home for:
- $500,000 or less you will receive a full concession and will not have to pay any transfer duty on your purchase;
- More than $500,000 but less than $550,000 you will receive a partial First Home Concession; or
- $550,000 or more you will receive a Home Concession (see details below).
Buying vacant land to your build first home?
Similar to the First Home concession above, to be eligible for the First Home Vacant Land concession you must:
- Be buying vacant land for less than $400,000;
- Have never claimed the First Home or First Home Vacant Land concession;
- Have never held an interest in residential property anywhere in Australia or overseas;
- Be at least 18 years of age;
- Build your first home on the land and move into the property as your principal place of residence (e.g. move in with your personal belongings and live there on a daily basis) within 2 years of settlement and live there for at least 12 consecutive months;
- Only build 1 home on the land;
- Be certain there is no building, or part of a building, on the land when you buy the land; and
Not dispose of (sell, transfer, lease or otherwise grant exclusive possession) all or any part of the property from the date of settlement until the expiry of the 12 month period that you live in the property as your principal place of residence.
Are you buying a home, even if it’s not your first home?
Unlike the First Home Concession, you can still get the Home Concession if you have previously owned residential property. The home concession rate applies to the first $350,000 of the purchase price, and the general transfer duty rates then apply to the balance. To claim this concession you must:
- Move into the property as your principal place of residence (e.g. move in with your personal belongings and live there on a daily basis) within 1 year of settlement and live there for at least 12 consecutive months;
- Must not dispose of (sell, transfer, lease or otherwise grant exclusive possession) all or any part of the property from the date of settlement to the expiry of the 12 month period that you live in the property as your principal place of residence;
- You must not demolish the home without living there first; and
- You must ensure any existing tenants move out when their lease expires or within 6 months of settlement, whichever is the earlier. Previous owners who continue to stay in the property must also move out within 6 months.
If you claim a concession and no longer meet the requirements following settlement, you must immediately notify the Office of State Revenue, so they can complete a reassessment of your transfer duty. Failure to do so can result in serious penalties.
Please keep in mind that if you are not an Australian Citizen or Australian Permanent Resident, you must pay Additional Foreigner Acquire Duty. This is likely to have significant financial implications for you, as you must pay the normal rate of transfer duty plus an additional 7% of the purchase price in transfer duty.
If you instruct Sempre Vero Lawyers to act for you in the purchase of your new property, we will ask you if any of the above circumstances apply to your purchase. We will then organise for the correct transfer duty concession to be applied for you – potentially saving you thousands.
More information: https://www.qld.gov.au/housing/buying-owning-home/advice-buying-home/transfer-duty/how-much-you-will-pay/calculating-transfer-duty/transfer-duty-rates
