In this blog we explain the different types of Transfer Duty concessions available for property buyers in QLD, in under 4 minutes....

We unpack the eligibilty requirements, as well as the money that can be saved by taking advantage of the concessions available for Transfer duty - courtesty of the QLD State Government! 

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Hi everybody - George Sourris, Empire Legal.

Today's topic: Transfer Duty Concessions - EXPLAINED! 

 
Transfer duty applies when land is transferred. It's formally known as Stamp Duty.

Transfer Duty is a government tax triggered when a dutiable transaction occurs. A dutiable transaction occurs when a property changes hands.

Disclaimer: this advice is general in nature. 

Okay, guys, there's three different concessions that I want to unpack with you today.

All information can be found on the Queensland Revenue Office website. Please note that transfer duty concessions explained here are different and completely independent to the First Homeowners Grant. Also, there are eligibility requirements, so you got to make sure you dive into the website (availalbe here).

1. First Home. For a purchase price up to $500,000 in Queensland, you will pay $0 transfer duty between $500 and $550,000. There's a sliding scale of transfer duty payable. After $550,000, there's no benefits applicable. 

This is because theoretically, for first home buyers, if you are wealthy enough to pay more than $550,000 for your first home, then you've got enough money to pay the full transfer duty amount.

You can save up to $15,975 with this concession. You must never have owned a home or any land anywhere in the world, ever to be eligible amongst other things which we'll unpack later. 

2. Home Concession. The Home Concession is where you can save up to $7,175 for committing to move into a newly purchased property as your principal place of residence.

You can apply for this concession if you have owned property before. Now NOTE: for First Home and Home concessions, there are eligibility obligations. You must move in within one year, you must stay for at least one year and NOT dispose of any or part of the property. After your 12 month occupation, you can dispose, for example, sell, lease, sublease without any penalties.

3. First Home Vacant Land. If you can find land in Queensland for less than $250,000 (good luck), you will pay $0 transfer duty if it's your first property. The First Home Vacant Land concession then works on a sliding scale for $250k to $400k. So if the land costs more than $400k, there's no transfer duty benefit that can be taken advantage of here.

There are conditions: you must never have owned land anywhere in the world, ever. You must build within two years of settlement, only build one home and there must be no building whatsoever on the land when you acquire it. Also, you cannot dispose of the property in any way before you move in, and then for a 12 month period from when you move into the property. This is inclusive of Granny Flats. 

No concession. If you don't get a concession, then you're paying full price for Transfer Duty.

NOTE: companies that purchase properties are NOT eligible for any transfer duty concessions in Queensland, because all of the concessions are for individuals.

For full details and eligibility, there is a transfer duty estimator on the Queensland Revenue Office website.

If your circumstances change and you have obtained the benefit of one of these concessions ( usually this is within that 12 month period) you must notify the Office of State Revenue as soon as possible for a reassessment.

If you have any questions in regards to transfer duty, please guys, get in touch.

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If you've got any topics you want me to talk about, send me an email george@empirelegal.com.au.

Until next time.

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Note: all information is general in nature and as each matter is unique please contact our office for tailored advices: the above does not constitute legal advice.