If you’re buying a home you’re likely to be immersed and maybe even a little overwhelmed with all the jargon that’s involved in the process. It can be difficult to understand all the fees and taxes that are involved, what you need to pay and what you might be exempt from. So we thought we’d explain a little bit about stamp duty and more specifically when you might be eligible for a Qld stamp duty concession.
What Is Stamp Duty?
Stamp duty or as it’s more commonly called in Qld, transfer duty, is a one-off tax that you’re required to pay when purchasing a home or land. It is collected from the buyer on completion of the transfer of a title and applies to residential, commercial or investment properties. It also applies to properties that you receive as part of a trust or as a gift.
How Much Is Stamp Duty In Qld?
Stamp duty in Qld is based on the purchase value or market value of the property. It should be noted that when you build a property you actually only pay transfer duty on the value of the land, not on the actual property.
If you’re not eligible for a concession the amount of transfer duty you will pay in Queensland is as follows:
Stamp Duty - General Rate
You can use our Stamp Duty Calculator to work out what fees you may have to pay as well as potential concessions you may be eligible for.
When Is Stamp Duty Payable In Qld?
Stamp duty is payable to the Office of State Revenue when ownership of the property transfers to you (the buyer). The buyer must pay it within 30 days of settlement or 30 days from when the contract is signed, whichever comes first.
How To Avoid Stamp Duty In Qld
There are only really a couple of ways in which you can avoid stamp duty in Qld. The first is if you are transferring the property to your partner and the second is through one of the current exemption schemes that the Qld Government offers.
If you’re transferring a property to your partner there are a number of requirements that need to be fulfilled:
You must be adding your spouse to the title
It must be a 50/50 split as joint tenants or tenants in common
You can also seek a stamp duty exemption in the case of divorce or separation
Who Is Eligible For A Stamp Duty Concession In Qld?
As mentioned above there are also a number of stamp duty concession schemes currently on offer in Qld. If you are planning on moving into the property in the next 12 months and not planning on selling or leasing the property (or part of the property) then you may be eligible for one of the following stamp duty exemptions:
First Home Concession
Home Concession
First Home Vacant Land Possession
Stamp Duty Concession For First Home Buyers in Qld
If you’re a first home buyer over the age of 18 years old and you’re buying an established or newly built home as your principal place of residence for under $500,000, you may be eligible for the maximum concession. For properties between $500,000 and $550,000 you will pay some stamp duty but at a much reduced rate.
The criteria you need to meet also include:
you have never before owned property anywhere in the world
you plan on moving into the property within 12 months of settlement
the property will be your principal place of residence for a minimum of 12 months after you move in
you will not lease the property prior to moving into it.
Home Concession
You don’t have to be a first home buyer to claim a concession as long as you meet certain requirements. If you are buying a property to live in as your principal place of residence and you intend to move in and live there for at least 12 months you can claim a reduced rate of stamp duty on the first $350,000. The general transfer duty rates would then apply to the balance.
First Home Vacant Land Concession
There is also a First Home Vacant Land stamp duty concession that may be claimed on land valued between $250,000 and $399,999 that you’re buying to build your first home on. For land valued at less than $250,000, a full transfer duty exemption may be claimed. However, if the land value is over $400,000 the concession cuts off and you will pay full stamp duty.
This concession is based on the value of the vacant land you are buying, not the property you are building.
So if you’re a first home buyer AND you’re building or purchasing a newly built home not only do you avoid stamp duty but you are also eligible for a first home owners grant of $15,000.
To be eligible for the First Home Vacant Land stamp duty concession you must:
have never claimed the first home vacant land concession on another project
have never held an interest in a residence anywhere in Australia or elsewhere in the world
be paying market value if the vacant land is valued between $320,001 and $399,999
build your first home on the land, move in and live there on a daily basis within 2 years of settlement
only build one property on the land
reside in the property as your principal place of residence for a minimum of 12 months after you move in
not dispose (sell, transfer, lease or otherwise grant exclusive possession) of all or part of the property before you move in.
Understanding your eligibility for stamp duty concessions in Qld can be daunting and confusing and the paperwork is complicated. As with all areas of home buying, I would strongly recommend working with professionals to assist you through the process and ensure you achieve the best possible outcomes for your personal circumstances.
Make sure you also take a read of our blog on how to avoid LMI for more tips on keeping your mortgage costs to a minimum.
The Federal Government's Help To Buy Scheme is also due to launch in 2024 so it's worth keeping up to date with all the options available to you. We will aim to keep you updated on all the latest schemes and opportunities as we get new information.
The information in this article is general in nature and doesn’t take into account your personal circumstances or financial situation. If you are looking to buy or build your first home, the experienced home loan experts from CJG Finance can help you navigate the process.
To find out more, contact us or call Colin at CJG Finance on: 0402 413 917 or email him: cgreen@cjgfinance.com.au
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