The Queensland Government have announced that from 1 August 2011, transfer duty rates will be adjusted. The most significant change is that there will no longer be a Home Concession available to Buyers purchasing property as their principal place of residence. The transfer duty reforms will be complemented by the introduction of a new six month Queensland Building Boost Grant and the continuation of the $7,000 First Home Owners Grant.
Below is an overview of the changes made to the Concessions & Grants:
1. Queensland building boost grant
The $10,000 Queensland building boost grant (QBBG) is available to any person or corporation buying or building a new home to live in or to rent out for investment purposes. The QBBG will be available for homes less than $600,000 from 1 August 2011 to 31 January 2012.
2. Transfer duty home concession
The home concession for transfer duty will cease on 31 July 2011. The concession is currently available to people who are not first home buyers but purchase a home to live in as their principal place of residence,.
3. First home and first home vacant land transfer duty concession
The first home transfer duty concession and first home vacant land concession continue to apply. However, the concession rates will be revised in light of the removal of the home concession. In particular, the concession will reduce for values from $500,000 to $600,000 against duty at the standard rate. These changes commence from 1 August 2011.
4. Regional first home owner grant
The standard $7,000 first home owner grant will continue to apply. However, the regional first home owner grant will cease on 30 June 2011. This grant currently provides an additional $4,000 for the purchase of a new home in regional Queensland by a first home buyer.
Calculation of transfer duty is complex and varies depending on your circumstances, please contact us if you would like to get an accurate figure on the transfer duty you may have to pay or to discuss if you are eligible for the Boost Grant or First Home Owners Grant.