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Home Stamp Duty Concessions Explained

HOME STAMP DUTY CONCESSIONS Home Stamp Duty Concessions Explained It was Benjamin Franklin who, in 1789 at the time of the writing of the US Constitution, wrote that “…in this world nothing can be said to be certain, except death and taxes”. Purchasing a new home is one of the most complex opportunities an individual […]

Home Stamp Duty Concessions Explained

Home Stamp Duty Concessions Explained

HOME STAMP DUTY CONCESSIONS

Home Stamp Duty Concessions Explained

It was Benjamin Franklin who, in 1789 at the time of the writing of the US Constitution, wrote that “…in this world nothing can be said to be certain, except death and taxes”.

Purchasing a new home is one of the most complex opportunities an individual will make in their lifetime and anyone who has recently purchased a house in Queensland would be well aware of the sum of money, quite distinct from the purchase price, loan application fees and a myriad of other costs, that they were required to pay to the Queensland Office of State Revenue (“OSR”) for stamp or transfer duty.

Transfer Duty is essentially an amount paid on the transfer of property, including real estate with the amount of stamp duty payable depending on the value of the property transferred and the purpose of your purchase.

Value of Property

Transfer duty is calculated by applying a sliding scale of taxation and is calculated on the greater of purchase price and market value using a rate of duty that increases with price/value.

CONCESSIONS ELIGIBILITY

Depending on your circumstances, there are a number of stamp duty concessions that are available. To claim a concession you need to complete a Claim for home or first home transfer duty concession (Form D2.1) and include it with your documents when lodging them for stamping. However if at any time you cease to meet the relevant requirements, you must advise the OSR within 28 days so that the transfer duty payable can be reassessed.

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Home Concession

Eligibility

  • you buy a home;
  • you move into the house and occupy it as your principal place of residence within 1 year of the transfer date;
  • you do not dispose of (including entering into a lease) any part of the property before moving in or within 1 year of moving into the property.

If you meet the above requirements then the first $350,000 will be assessed at a home concessional rate.

First Home Concession

Eligibility

  • you have never held an interest in residential land anywhere in the world
  • you have never claimed the first home vacant land concession
  • you move into the house and occupy it as your principal place of residence within 1 year of the transfer date;
  • you are at least 18 years of age (though this may be waived in special circumstances);
  • you do not dispose of (including entering into a lease) any part of the property before moving in or within 1 year of moving into the property.

If you meet the above requirements and are buying a home valued less than $550,000 then your home concession will be calculated at the home concession rate minus the first home concession amount. If you buy a home valued more than $550,000 you can still claim the first home concession but the benefit of it is reduced to zero so the home concession rate will be applied to the whole purchase price/value.

First Home Vacant Land Concession

Eligibility

  • you buy vacant land valued less than $400,000
  • you are at least 18 years of age
  • you have never held an interest in residential land anywhere in the world
  • you will build only one home (which must be your first home) on the vacant land and occupy the constructed home as your first principal place of residence within 2 years after the land is transferred to you
  • you do not dispose of all or part of the land before or within 1 year after you start living in the constructed home.
  • no building, or part of a building, is on the land when you buy it
  • you haven’t received a first home vacant land concession before.

CONCLUSION

Few people look forward to paying money out to the Government and this is particularly true when you are making a significant financial investment. It is therefore vital that you ensure that you take advantage of any available concessions that will reduce the amount payable.

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Here at Aylward Game we are highly experienced in guiding you through the process and ensuring that you only pay the correct amount of stamp duty.

Contact
United Service Club
Level 4, 183 Wickham Terrace, Brisbane QLD 4001

Free: 1800 217 217
Phone: 07 3236 0001
Fax: 07 3236 0005
Email: mail@aylwardgame.com.au

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