Stamp duty exemptions QLD: Everything you need to know 2023

Stamp duty

Stamp duty, which is often known as transfer duty, is required to be paid by the majority of property buyers in Australia’s state “Queensland.” This tax, which applies to the purchase of a property, might be higher – so expensive, in fact, that it is often the second-biggest upfront expense associated with buying a home right after a down payment.

However, buyers who fall into certain categories in the state of Queensland are eligible for a reduced payment of stamp tax, while some buyers also enjoy stamp duty exemptions QLD and don’t pay tax at all.

What is Stamp Duty?

In the state of Queensland, a tax known as “transfer duty,” which is sometimes referred to as “stamp duty,” is levied by the state authority whenever real estate is sold or otherwise transferred to others. The buyer or recipient of a property is responsible for this tax, not the seller.

How much is Stamp Duty in Queensland?

The total stamp duty cost is calculated as a percentage of the property’s selling price. Stamp duty is determined using a sliding scale, with higher rates applying to more valuable properties. The price, however, changes depending on your plans for the property.

There is a standard stamp duty rate set by the state government that must be paid when buying an investment property. A house exemption applies if you intend to make the home your primary residence. To encourage first-time homebuyers, they are offering special benefits.

Example 1:

First Home with a Total Value of $1,00,000

Property Type: Primary Residence

You’ll have to pay:

Mortgage Registration Fee + Transfer Fee + Stamp Duty

Mortgage Registration Fee: $209

Transfer Fee: $209

Stamp Duty: $0

Total: $418

Example 2:

First Home with a Total Value of $535,000

Property Type: Primary Residence

You’ll have to pay:

Mortgage Registration Fee + Transfer Fee + Stamp Duty

Mortgage Registration Fee $209

Transfer Fee: $1,621

Stamp Duty: $7,350

Total: $9,180

Example 3:

Total Property Value of $1,00,000

Property Type: Investment Property

You’ll have to pay:

Mortgage Registration Fee + Transfer Fee + Stamp Duty

Mortgage Registration Fee: $209

Transfer Fee: $209

Stamp Duty: $1,925

Total: $2,343

Stamp Duty Concession for First Home Buyers

By qualifying for the stamp duty exemptions QLD or concession, a first-time homebuyer in Queensland may save as much as $8,750 on closing expenses. It’s offered to those who spend less than $550,000 for a pre-existing house or less than $400,000 on a plot of land.

What’s more?

The buyer of real estate is responsible for paying stamp duty. Due to the fact that stamp duty may add up to a sizable cost when purchasing a house, the Queensland government has chosen to assist first-time buyers by waiving all or a portion of the stamp duty.

This is equivalent to the stamp duty required when purchasing an automobile and registering or transferring the vehicle’s registration. Whether you’re purchasing a previously occupied house or constructing a brand new one will determine the size of the rebate you’re eligible to get. As the value of property rises or falls, so does the amount.

Eligibility Criteria to Get QLD First Home Buyers Stamp Duty Concession

Here are the requirements to meet if you want to buy an existing home, apartment, unit, or even a townhouse:

  • You need to be 18 or older on the day of purchasing.
  • You need to be a citizen or permanent resident of Australia to apply. If you are not, you may still get the discount; however, you’ll have to pay an extra charge of 3% of the purchase price known as the Additional Foreign Acquirer Duty (AFAD).
  • You must not have any history of home-property ownership.
  • Within a year of the settlement date, you should move into the home you have purchased and make it your permanent residence.
  • Before you move in, the property must not have been sold, leased, or otherwise given to another person.

If you are purchasing a house with another person, it is irrelevant if they do not meet the requirements for the home concession since you will still be eligible for the concession for your share of the property.

The Bottom Line

This page provides information that is, for the most part, generic in nature. It is just meant to serve as a reference and does not take into consideration the specific requirements of your own financial situation. Please consult your own legal and financial advisors before taking any action based on this information.

Further reading: Basic tax support information for single mums.

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