When the QLD Treasurer, Andrew Fraser, handed down the 2008/2009 State Budget it outlined various changes to stamp duty associated with Queensland properties.
The intent of the new structure was to generally improve competitiveness with other states and assist First Home Owners with the affordability of buying their own homes.
While the budget contains reductions in stamp duty for some home buyers and retirement village residents, there is still a sting in the tail in the form of increased rates which will affect transactions over $590,000.00.
The Good News!!
Concessions and exemptions for home buyers and retirement village residents:
1. Abolition of Mortgage Stamp Duty;
2. An increasing in the threshold for the firm home buyers duty exemption from $320,000.00 to $500,000.00;
3. An increase in the ceiling for the principal place of residence concession from $320,000.00 to $350,000.00; and
4. An extension of the principal place of residence concession to retirement village residents who adopt lease and sub-lease occupancy arrangements, which has never applied before.
When combined with the new duty rates, these concessions and exemptions will reduce the duty payable on homes valued between $320,000.00 and $1,000,000.00.
The Bad News!!
As the new rates lead to savings for transactions under $590,000.00 they have lead to increased rates of stamp duty for transactions over $590,000.00 , with the top marginal rate increasing from $4.50 to $5.25 per $100.00. ie. For a transaction of $750,000.00 stamp duty has risen from $26,225 to $26,775.
C-Property Conveyancing’s Help
C-Property Conveyancing has developed comprehensive tools for use by you in assisting calculating stamp duty payable by your clients to make things easy for you. Should you have any further queries please do not hesitate to contact us on 3262 1599