HOW TO CALCULATE TRANSFER DUTY WHEN PURCHASING MORE THAN ONE PROPERTY FROM THE SAME SELLER
The stamp or transfer duty on multiple dutiable transactions can only be added together to form one arrangement if they are collectively related - this is determined by several factors.
BE CAREFUL OF EXTRA DUTY when
adding several property transfers
Aggregation or the addition of the duty on dutiable transactions will result in the payment of more stamp duty than if duty was paid separately on each property.
Aggregation is dependent on the following:
Are they contained in one instrument (e.g. an agreement or a transfer)
Are any of the transactions conditional on entry into, or completion of, any of the other transactions
whether the parties to any of the transactions are the same or are related
the timeframe over which the transactions take place
whether, before the transactions take place, the dutiable properties were used together or dependently by the transferor(s)
whether, after the transactions take place, the dutiable properties are used together or dependently by the transferee(s).
Aggregration of dutiable transactions
Aggregation of dutiable transactions is compulsory under section 30 of the Duties Act 2001.
If transactions can be aggregated then the transfer duty is calculated on the total consideration or value rather than each dutiable transaction separately. This will be a greater amount of Stamp Duty than if you paid stamp duty separately for each property.
At lodgement for assessment all parties involved must declare the following information:
Their knowledge of
all the dutiable transactions and property included in the arrangement
the dutiable value of each dutiable transaction.
TRANSFER DUTY CALCULATION EXAMPLES
For aggregated transfer duty the total amount payable may be higher than if each transaction were calculated separately and added together.
CALCULATING TRANSFER DUTY IN QUEENSLAND
The transfer duty rate is applied to the added TOTAL value of all related transactions and NOT calculated by applying the rate separately to each transaction.
If you have any questions related to the calculation of your stamp duty in Brisbane or paying Queensland transfer duty contact Horrocks Solicitors today on 07 3013 2300.