Am I eligible for a Transfer Duty Concession?
WHAT IS TRANSFER DUTY?
Transfer duty (previously called ‘Stamp Duty’) is essentially a one-off tax payable on the transfer of property. The sum is paid to the Office of State Revenue (Queensland Government) by the purchaser.
The amount of transfer duty payable will differ depending on the value of the property. It will also depend on whether the purchaser will be moving into the home, or whether they are acquiring it for investment purposes. However, an individual may be eligible for a concession in the circumstances outlined below, resulting in a reduction of all or part of the transfer duty payable.
CONCESSIONS
General eligibility requirements
Must be at least 18 years of age on date of purchase
Must be an Australian citizen or permanent resident (otherwise Additional Foreign Acquirer Duty applies)
I am buying property as my first home – first home concession
If you are a first-time buyer and the purchase price is less than $550,000, you may be exempt from paying transfer duty if certain requirements are satisfied.
You must move into the home within 1 year of settlement and must not dispose of all or part of the property within 1 year of moving in. Further, if you purchase the home with existing tenants, they must vacate the property within 6 months of settlement.
Example
Purchase Price: $300,000
Transfer duty payable: $0
I am buying property as my home – home concession
If you purchase property with an intention to occupy it as your home (but you have owned property before), you may be eligible for the home concession. The home concession rate applies to the first $350,000 of the purchase price, with the general rates applying to the balance.
You must move into the home within 1 year of settlement and must not dispose of all or part of the property within 1 year of moving in. If you purchase the home with existing tenants, they must vacate the property within 6 months of settlement.
Example
Purchase Price: $300,000
Transfer duty payable: $3,000
I am buying vacant land to build my first home – first home vacant land concession
If you purchase vacant land with an intention to build your first home, a concession may apply where the value of the land is $400,000 and under. No transfer duty at all will be payable if the value of the land does not exceed $260,000.
You must ensure the home is built and occupied personally within 2 years of settlement, and you must not dispose of all or part of the property within 1 year of moving in. There must be no existing structures when you acquire the land and you can only build a single home on the land.
Example
Purchase Price: $300,000
Transfer duty payable: $4,125
WHAT IF I AM BUYING AN INVESTMENT PROPERTY?
If you are purchasing a property for investment purposes, you will need to pay the full rate of transfer duty, as no concession is applicable. Further, where you acquire vacant land to build a home (that will not be your first home) the full rate of transfer duty will also apply.
Example
Purchase Price: $300,000
Transfer duty payable: $8,925
Office of State Revenue Transfer Duty Calculator - http://amun.osr.qld.gov.au/sap/osrqld/wd_tfr_calc_com#