The beginning of the 2008/2009 financial year has seen a number of significant changes in the way duty is assessed. Below is a summary of the changes endorsed by the Queensland State Government as from 1 July 2008.
Transfer Duty
The first home buyer transfer duty exemption has increased and will now apply to properties purchased for a consideration equal or less than $350,000. An increase to $500,000 can be expected by 1 September 2008.
The availability of the concessional rate of 1% duty charged on a property that is a person's principal place of residence has been increased and will now apply to properties valued up to $350,000.
Standard transfer duty rates have been changed significantly at the 'top end'. Where the dutiable value of property is above $980,000 duty will be calculated at a rate of 5.25%. Any contracts entered into as from 1 July 2008 for purchases over this amount will see increases in duty payable from 1 July 2008.
Mortgage Duty
Mortgage duty has been abolished.
Land Tax
The changes to land tax for properties owned by resident individuals will benefit those who own property that has an unimproved land value up to $2,999,999. Any property with an unimproved land value over $3,000,000 will remain unchanged and duty will be continue to be calculated at a rate of 1.25% on the full value.
The changes to land tax for properties owned by companies, trustees and absentees will benefit those who own property that has an unimproved land value up to $2,250,000.
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.
