This discussion relates to the stamp duty requirements in
Queensland for the purchase of residential property. Each State will have its own particular rules.
Our Article covers the major general stamp duty effects for
residential property. However, you should contact the
Office of State Revenue to confirm stamp duty liability for
your particular situation.
Stamp duty is payable on the transfer of ownership of the
property, which is payable by the Buyer.
A. Stamp Duty on Transfer of Ownership
In Queensland, you will need to pay stamp duty within 30 days from the date of your Contract. If you had any conditions in the Contract, (such as finance or building inspection), then the 30 days runs from when the Contract became unconditional (that is the date from which the last condition was satisfied).
The amount you pay depends on your particular circumstances.
If you will use the property as an investment, then you will pay the full rate. However if you are a homebuyer, you may be entitled to
concessions. The QLD Government will grant concessional rates in certain circumstances:
First Home Buyers buying House and Land or Unit/Townhouse as their principal place of residence are eligible for sizeable concessions depending on the purchase price;
First Home Buyers buying
Vacant Land to build their first home also may receive a concession;
Home Buyers buying a home to live in (but not first home) may be entitled to a concession, but only if their Contract is dated BEFORE 1 August 2011.
Click on our Stamp Duty Calculator below
to calculate your applicable rate.
NOTE: This concession is not available if your Contract is dated 1 August 2011 or later.
To qualify, you need to satisfy the 2 conditions below:
You need to start living in the property as your principal place of residence:
within 12 months from the transfer date (the date you possess the property, which is normally the settlement date). Most buyers will move in immediately after settlement, but you don’t have to.
You have to be careful that you don’t lose your concession if you decide not to move in immediately.
You can leave the property vacant, OR for no more than 6 months you can rent it back to the Seller or leave the pre-existing tenant in there. But you cannot re-tenant it.
You must remain living in the property for a minimum of
12 months after you first moved in. If you don’t stay the full 12 months, however, you do not lose your concession entirely. The concession is pro rated based on the
period you stayed (so for example, if you stayed ¼ of the year, then you retain ¼ of the concession, and so forth). You are required to
notify the Commissioner and pay back the portion of the concession if you do leave earlier than the 12 months.
Please note the following additional points:
There is no longer a
restriction on acreage owners – you can claim the
concession on the full land provided that the land is
not used for income generation.
In order to apply for these
concessions, you need to complete a Stamp Duty Form 2.1. If
you are doing your conveyance (purchase) through Quicklaw,
this form is completed for you online.
If you are related to
the Seller (eg by marriage or blood) then you will need
to obtain an independent valuation of the property as to
its market value. This will be the case even if you feel
you are paying market value. Usually the Stamps Office
will accept a letter of valuation from a Real Estate
Agent.
You must be an individual (over 18) not a company or
trustee of a trust (some exceptions apply)
To qualify, you need to satisfy all of the above conditions
(for a home owner) and in addition, satisfy the following:
You must not have owned a
house/unit/townhouse before (whether in Australia or
overseas). If you owned vacant land or a
commercial/industrial property, then you
still qualify for these concessions as long as you haven't
received a first home owner concession for the Vacant Land
previously.
B. Buying Vacant Land
To qualify, you must satisfy the following conditions:
You have not owned a house/unit/townhouse before
If you have owned vacant land before you did not receive a first
home owner concession for it
Within two (2) years after settlement, you will have constructed
your first home on the land
To get the full concession you must then occupy the home for at
least twelve (12) months
You must be an individual over 18 (not a company or trust)
If you are thinking about
buying a property, please consider using our online conveyancing service. The service is fully interactive.
For more information, click
here.
If the property is for investment purposes, or you do not
meet the above concession criteria, then full stamp duty rates are
applicable (even if you have never owned a property before).
