Transfer duty (previously and still commonly known as stamp duty) is a state tax which is payable on dutiable transactions in the State of Queensland. Transfer duty is calculated on the dutiable value of the property which is generally the higher of the consideration payable under the relevant contract and the unencumbered market value of the property.
As transfer duty is applicable to each transaction, you must ensure that the buyer named in the contract is the person or entity that you intend to own the property. Otherwise you risk two or more assessments of transfer duty, which can increase the transfer duty payable.
If you are seeking to purchase property for your Self-Managed Super Fund (“SMSF”) and are planning to buy the property using a bare trustee as purchaser with a loan, then you run the risk of having to pay transfer duty again when the property is transferred to your SMSF on repayment of the loan. We strongly suggest you seek advice on strategy to avoid that additional duty.
You also need to carefully consider your current and ongoing eligibility for any concession or exemption that you obtain.
If you do not fulfil obligations regarding the payment of duty or advising the Office of State Revenue of changes to your eligibility for concessions or exemptions, then they may identify this (as they actively cross-check data held by other government agencies) and can seek to recover any shortfall directly from you including penalties and interest. Recovery of incorrect or unpaid duty may occur years after settlement and could compound into substantial amounts.
From 1 October 2016, transactions under which foreign persons acquire land for residential use or development will attract additional duty which is known as additional foreign acquirer duty. We will discuss the additional foreign acquirer duty in due course.
IF you’re a first homebuyer in Queensland, this is the lay of the land in the wake of the federal budget. You now have more incentive to get a foot on the property ladder, but put these dates in your calendar to take full advantage of the savings measures.
From July 1, you can start saving for a home deposit by salary sacrificing into your super fund.
Withdrawals will be taxed at a lower rate, but the amount you can contribute is capped at $15,000 a year and $30,000 all up.
Both members of a couple can take advantage of the scheme. The Government says this will help first home buyers to save a house deposit 30 per cent faster.
But while one measure is being introduced, part of another will be taken away.
From midnight on June 30, the Queensland government’s $5000 increase to the first home buyers grant expires, so you only have about seven weeks to build or buy a new home in the state before it reverts back to the original $15,000.
The First Home Buyers Stamp Duty Rebate — up to $8,750 — still applies for all first home buyers who are buying an existing home or building a new home in Queensland, when the value of the property is less than $550,000.
Another measure in the budget that could free up more family homes and ease house prices is enabling downsizers over the age of 65 to make a non-concessional contribution of up to $300,000 into their super fund from the proceeds of the sale of the family home.
QUEENSLAND FIRST HOME BUYERS — WHAT YOU NEED TO KNOW
*June 30 — Queensland First Home Buyers Grant increase expires, dropping from $20,000 to $15,000
*July 1 — The First Home Super Saver Scheme kicks in, allowing first home buyers to funnel up to $30,000 into their super account at a lower tax rate
*The First Home Buyers Stamp Duty Rebate still applies for buying an existing home or building a new home when the value of the property is less than $550,000
The Government handed down the 2017–18 Budget on 9 May 2017, with several proposed changes to tax and superannuation laws. The announced measures in the 2017/18 are listed below:
ATO website update - 2017/18 Federal Budget