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Amendments to the Duties Act 2001 and the Building Act 1975 were
passed by the Queensland Parliament on 19 June 2012 to:
reinstate the transfer duty home concession; and
abolish the requirement for sellers of residential premises to
provide sustainability declarations to prospective buyers.
How will the amendments affect home buyers?
Before it was abolished in August 2011, the transfer duty home
concession gave a concession for buyers of residential property who
intend to live in that property. The amendments to the Duties Act
2001 reinstate this concession so that the rate of transfer duty
payable is $1 for each $100 for the first $350,000 of the purchase
price of the home, with standard rates applying for any part of the
purchase price above $350,000. This could save home buyers up to
$7,000.
There are minimum occupancy and eligibility requirements and
also anti-avoidance provisions to prevent buyers terminating
existing contracts.
How will the amendments affect first home buyers?
The first home duty concession currently phases out completely
for contracts valued at $600,000 or more.
The amendments will bring the phase-out value down to $550,000,
thereby reducing the scope of the concession for first home buyers.
The LNP cites the lack of success in incentives designed to
reinvigorate the building industry as one of the triggers for this
reduction. Amendments will also be made to the first home vacant
land concession.
Please see our comparative table below for more information.
How will the amendments affect sellers?
The amendments to the Building Act 1975 remove the requirement
for sellers to prepare a sustainability declaration and provide it
to potential buyers of residential property. This will not only
eliminate red tape but also the risk that sellers may have to
compensate a buyer if they make a mistake in their sustainability
declaration.
When will the amendments take effect?
Provided that the bill receives royal assent, the new transfer
duty rates will commence on 1 July 2012 and will apply to all
residential property contracts entered into on or after that
date.
The abolition of the requirement for sellers to provide a
sustainability declaration takes effect once the bill receives
royal assent, which is likely to be before 1 July 2012.
Home Transfer Duty Concession from 1 July 2012
Purchase Price
Duty Payable
Up to $350,000
$1 for each $100 or part of $100
$350,001 to $540,000
$3,500 plus $3.50 for every $100 or part of $100 over
$350,000
$540,001 to $980,000
$10,150 plus $4.50 for every $100 or part of $100 over
$540,000
More than $980,000
$29,950 plus $5.25 for every $100 or part of $100 over
$980,000
First Home Concession up to 30 June 2012
Purchase Price
Concession
Not more than $509,999.99
Up to $15,525
$510,000 to $519,999.99
$13,925
$520,000 to $529,999.99
$12,325
$530,000 to $539,999.99
$10,725
$540,000 to $549,999.99
$9,125
$550,000 to $559,999.99
$7,550
$560,000 to $569,999.99
$6,000
$570,000 to $579,999.99
$4,500
$580,000 to $589,999.99
$3,000
$590,000 to $599,999.99
$1,500
$600,000 or more
nil
First Home Concession from 1 July 2012
Purchase Price
Concession
Not more than $504,999.99
$8,750
$505,000 to $509,999.99
$7,875
$510,000 to $514,999.99
$7,000
$515,000 to $519,999.99
$6,125
$520,000 to $524,999.99
$5,250
$525,000 to $529,999.99
$4,375
$530,000 to $534,999.99
$3,500
$535,000 to $539,999.99
$2,625
$540,000 to $544,999.99
$1,750
$545,000 to $549,999.99
$875
$550,000 or more
nil
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guide to the subject matter. Specialist advice should be sought
about your specific circumstances.
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