What is Transfer Duty and which concessions are available for Home Buyers and First Home Buyers? - September 2024
Who Pays Transfer Duty?
The buyer or transferee is usually responsible for the assessment and payment of transfer duty. You’ll need to pay any liability within 30 days of the unconditional date of the Contract or the settlement date, depending on which is the earlier of the two.
Transfer Duty Concessions
In Queensland, there are several concessions that you can apply for, each of which significantly lower your transfer duty. The two most common concessions are:
- First Home Concession: If you’re a first-time home buyer, you might qualify for a transfer duty concession when purchasing your first home. Recently the Queensland Government raised the maximum price for eligibility to the First Home Concession from $550,000 to $799,999 (noting that if the residence is valued between $700,001 and $799,999, you must be paying market value for the property to remain eligible for this concession). These updates to eligibility for the first home concession now reduce the duty payable to as low as $0 where the purchase price and the market value of the property is $700,000 or lower.
First home buyers should also be advised that they may be eligible to also receive the Queensland Government’s First Home Owners’ Grant. The First Home Owners’ Grant is not the same as the First Home Concession for transfer duty and is provided by the Queensland Government to give eligible first time home buyers $15,000 or $30,000 towards buying or building a new home in Queensland. First home buyers should speak to their financier or click on the following link for more information: https://qro.qld.gov.au/property-concessions-grants/first-home-grant/
- Home Concession: This concession is for individuals buying a home to live in as their principal place of residence. It lowers the transfer duty compared to standard rates. To qualify, you must be purchasing the property as an individual person (e.g. not a company or trustee), move into the property within a year of the transfer and live there on a daily basis for at least 12 months. Additionally, you are not able to extend or sign any leases or tenancy agreements before moving in or during the 12-month period that you live in the property. If you breach any of these requirements, you may be required to pay some or the full amount of transfer duty on the property, potentially with additional accrued interest.
How to Apply for Concession
To claim a transfer duty concession, you need to fill out the relevant Office of State Revenue forms. It’s crucial to ensure you meet all eligibility requirements and submit your application forms on time. At Mott & Associates, we handle these forms for you as part of our fixed-fee conveyance service or as part of your property purchase/transfer. It is important to keep in mind that if you are not an Australian Citizen, you are required to provide further information to the Queensland Revenue Office. In this instance, we ask that you retain any important relevant information such as VISA numbers and the details of your international passport.
Understanding transfer duty and available concessions can save you a lot of money when buying property in Queensland. Make sure you know the criteria and application process to take full advantage of these savings. For more personalised guidance, please reach out to our friendly team at Mott & Associates Solicitors www.mottlaw.com.au or phone (07) 3180 3580
What is Transfer Duty?
Transfer duty (previously called stamp duty) is a tax you pay when transferring property, whether it’s real estate, vehicles, or other particular assets. In Queensland, the Office of State Revenue oversees transfer duty. The amount you owe depends on the property's value and the nature of the transaction.
