CONVEYANCING TRANSFER DUTY

STAMP DUTY

What is Property Stamp Duty?

Stamp Duty is a tax on property transactions by the Queensland Government and is also called Transfer Duty or General Duty. The rate of stamp duty is calculated according to the type and value of the transaction involved.

How much Stamp Duty do I have to pay?

The amount of Stamp Duty that you need to pay can be calculated on the online calculator provided by the Office of State Revenue (Queensland Government) and depends upon the amount of money being paid for the property and whether the property is to be used as a principal place of residence by the buyer or as an investment property. Your transaction may be eligible for Concessions and Exemptions and you could have less or no duty to pay.

DUTIABLE TRANSACTIONS

What kind of property transactions is Stamp Duty paid on?

Dutiable transactions include:

• signing a contract to buy or sell a home

• giving a half-share of a property you own to your spouse as a gift

• giving someone access across your property (an easement)

• creating a trust over land that you previously owned in your own right for your children or family members.

TRANSFER DUTY CALCULATOR

QUEENSLAND STAMP / TRANSFER DUTY CONCESSIONS GUIDE

Stamp duty, also known as Transfer Duty, is a tax levied on property transfers in Queensland. The buyer is responsible for paying stamp duty to the Queensland Government. However, various Queensland stamp duty concessions may apply, reducing the amount of duty payable depending on specific eligibility criteria. In this guide, we’ll cover the different stamp duty concessions in Queensland and help you understand how to qualify for them.

STAMP / TRANSFER DUTY QUEENSLAND - CONCESSION REQUIREMENTS

1. FIRST HOME CONCESSION

If you're a first-time property buyer, you may be eligible for the First Home Concession on stamp duty. To qualify, you must meet the following criteria:

• Never owned property anywhere in the world.

• Move into the property within 12 months of settlement.

• The property must be your principal place of residence for at least 12 consecutive months after moving in.

• You must not enter into a new lease of the property before moving in.

This concession significantly reduces the amount of stamp duty payable, making it more affordable for first-time buyers to enter the property market in Queensland.

2. HOME CONCESSION

If you have previously owned property, you may still qualify for a Home Concession. To be eligible, you must:

• Have previously owned property, but you must not currently own a home.

• Move into the property within 12 months of settlement.

• The property must be your principal place of residence for a minimum of 12 consecutive months after moving in.

• You must not enter into a new lease of the property before moving in.

This concession provides a reduction in the standard stamp duty rate for buyers purchasing their next home in Queensland.

3. FIRST HOME - VACANT LAND CONCESSION

The First Home – Vacant Land Concession applies to first-time buyers who purchase vacant land. To qualify, you need to meet these criteria:

• You have never owned residential land (either in Queensland or elsewhere).

• You have not previously claimed the First Home Vacant Land Concession.

• You intend to build and occupy a home on the land as your first principal place of residence within 2 years after the land is transferred to you.

• You must not dispose of the land before, or within 1 year after starting to occupy the newly constructed home as your principal place of residence.

This concession makes it easier for first-time buyers to purchase vacant land and build their dream home in Queensland.

4. VACANT LAND - NO CONCESSION

If you do not meet the criteria for the First Home Vacant Land Concession, you will not be eligible for any stamp duty reductions. Additionally, if you purchase vacant land through a company or trust, the Queensland Government may classify the property as investment property, which is ineligible for any stamp duty concessions.

5. INVESTMENT PROPERTY - NO CONCESSION

For buyers purchasing investment property, stamp duty concessions are not available. If you purchase property through a company or trust, or if the property is deemed commercial property by the Queensland Government, you will be required to pay the full stamp duty amount. Investment properties are not eligible for any first home or home-related concessions.

HOW ARE QUEENSLAND TRANSFER / STAMP DUTY RATES CALCULATED?

The amount of stamp duty you’ll pay in Queensland depends on the purchase price or market value of the property, whichever is greater. For properties eligible for concessions, the duty amount is reduced based on the relevant concession criteria. The standard stamp duty rates in Queensland range from 1% to 5.75% of the property’s value, depending on the price bracket.

IMPORTANT NOTES ON STAMP DUTY CHANGES IN QUEENSLAND

• Changes in Stamp Duty Rates (July 2012): In July 2012, Queensland saw a reduction in stamp duty rates for first-home buyers and other property buyers in specific situations.

• Stamp Duty Rates – August 2011: Previous changes in Queensland stamp duty rates, including adjustments for first-home buyers, impacted the eligibility and amounts of stamp duty payable.

If you're buying property in Queensland, it’s crucial to understand the various stamp duty concessions available to you. Whether you're a first-time homebuyer, purchasing vacant land to build a new home, or moving into your next property, qualifying for a concession can significantly reduce the cost of stamp duty. Make sure to check the eligibility requirements and consider seeking professional advice to ensure you're taking full advantage of the available concessions.

For more information on Queensland stamp duty concessions and how they apply to your property purchase, consult with our Horrocks Solicitors conveyancing experts today or your local government authority.

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