Transfer Duty: The Hidden Cost of Property Purchases
Death & Taxes. The two inevitabilities in life according to Mark Twain. Property in Queensland attracts the third being Transfer Duty which was once known as Stamp Duty. Transfer Duty is payable by the purchaser of any dutiable transaction.
A State government cannot levy a tax per se however they have the ability to raise revenue through a duty which is levied to a particular transaction. All property dealings be they residential or commercial attract Transfer Duty.
The amount payable to the Queensland Government is calculated according to a sliding scale formula however thankfully there are some exemptions. A first home buyer may purchase an existing home valued up to $500,000.00 or vacant land up to $250,0000 without paying transfer duty. First home buyers still receive an additional marginal concession up to $550,000.00, which may save up to $8,750.00, for a home and up to $400,000.00 for vacant land against the full transfer duty which may save you up to $7,175.00.
A buyer who plans to live in a property within 1 year of the purchase has a concessional rate compared to an investment property. However, if a purchaser is a foreign citizen, then the Additional Foreign Acquirer Duty is also applied and there may be the need to make an application to the Foreign Investment Review Board.
Confused Yet? Heritage Conveyancing can manage the purchase or sale of your property and answer all of your questions regarding Transfer Duty. This is not to be taken as legal advice and you should seek assistance with your particular circumstances.