The Fiscal Repair Amendment Act 2012 was passed by the Queensland Government on 21 September 2012. It amends the Duties Act 2001 and the First Home Owner Grant Act 2000.
Changes to the First Home Owner Grant Act
Significant changes have been made to the first home owner's grant. For contracts dated on or after 12 September 2012, the grant has increased to $15,000, but is now only available for new homes. A new home is a home that has not been previously occupied or sold as a place of residence or is a substantially renovated home (in certain circumstances). The current eligibility requirements continue to apply.
First home buyers purchasing an existing home will be eligible for the $7,000 first home owner's grant if the contract is signed and dated before 11 October 2012.
Changes to the Duties Act
The rate of transfer duty payable on dutiable transactions has changed. The transfer duty rate for values up to $1,000,000 remains at 4.5%. For values over $1,000,000, the transfer duty rate has increased to 5.75%. This change is effective from 21 September 2012.
How will the amendments affect property buyers?
If you are purchasing your first home, unless it is a new home or (in the case of an existing home) the contract is signed before 11 October 2012, you will not be eligible to receive the first home owner's grant. You may still be eligible for transfer duty concessions.
If you are involved in a dutiable transaction with a document date of 21 September 2012 or later and for a consideration of more than $1,000,000, the applicable transfer duty rate is 5.75%.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.
