22 June 2011

Queensland budget reforms

Changes to Queensland's Stamp Duty laws & Building incentives

If you are in the real estate and development industries, or looking to buy a new property, these changes will affect you.

Arising from the Qld State Government budget announcement, there will be several significant changes taking effect from 1 August 2011.

$10,000 Queensland Building Boost Grant

Available: 1 August 2011 until 31 January 2012.

If you are considering purchasing or investing in a new residential property, and do so within this time frame, the $10,000 grant may be available for properties costing less than $600,000

Continuing is the first home owner grant of $7,000 for properties under $750,000. Buyers may be eligible to receive both the Building Boost and the Home Owner Grant

Stamp Duty Changes

The major change occurring from 1 August 2011 is the elimination of the principal place of residence concession. As shown below, there have been marginal reductions in certain rates, however due to the elimination of this concession, the cost of purchasing your own home has effectively increased by as much as $7000.

A stark illustration of the cost of losing the concession is the duty payable on a modest $480,000 principal residence – the result is an increase in duty from $8,050 to $14,625!

Transfer duty rates from 1 August 2011

 Purchase price/value  Duty rate
 Up to $5000  Nil
 $5000 - $105,000  $1.50 for each $100, or part of $1000 over $5000
 $105,000 - $480,000  $1500 plus $3.50 for each $100, or part $100 over $105,000
 $480,000 to $980,000  $14,625 plus $4.50 for each $100, or part $100, over $480,000
 More than $980,000  $37,125 plus $5.25 for each $100, or part of $100, over $980,000

For further information click here to see the government's official webpage.

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This Newsletter, of necessity, has dealt with matters of a technical nature in general terms only. Clients should contact us for detailed information on any of the items in the Newsletter. No responsibility for loss occasioned to any person acting or refraining from acting in reliance upon any material in this Newsletter can be accepted by any member or employee of the firm.

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