There are only two certainties in life – death and taxes.
When it comes to owning property in Queensland, the Government only cares about the latter.
Transfer Duty (still commonly referred to as Stamp Duty) is a tax calculated on either the consideration paid or the value of dutiable property, whichever is greater.
Dutiable property means:-
- any land in Queensland;
- a transferable site area;
- an existing right;
- a Queensland business asset; and
- a chattel in Queensland.
Short of clever accounting and asset protection structuring through the creation of companies and trusts, it is becoming increasingly difficult in Queensland to limit your Transfer Duty liability. Fortunately, there are a number of concessions and exemptions available to Transferees (Purchasers), however, many of these remain unknown and underutilised.
Perhaps most relevant are exemptions and concessions available to home buyers. While most are aware of exemptions available to first home owner’s if:-
- purchasing their first principal place of residence; and
- have not owned any other land anywhere else in the world.
There are however further concessions available to those purchasing a principal place of residence (even if it isn’t the first).
For example, if the dutiable value of a residential home is $550,000.00, the Transfer Duty is $17,775.00. However, if a knowledgeable buyer claims the home concession, the Transfer Duty payable is reduced to $10,600.00. Claiming this concession is a fantastic opportunity too often missed through lack of knowledge or poor advice.
While purchasing a home is the most common example, there are also concessions and exemptions available for:-
Eligible Family businesses; specifically primary production and those businesses prescribed by the Duties Act 2001 (Qld) including manufacturing and retailing operations;
- Superannuation concessions when transferring dutiable property between super funds;
- Death of the property owner exemptions when the property is distributed from an Estate;
- Exemptions for charitable institutions when acquiring property to conduct a charitable purpose; and
- Various other statutory exemptions relating to specific situations including divorce and property settlements, transferring properties into a spouse’s name and Deed of Grants over indigenous land just to name a few.
If you or your business are wishing to acquire an interest in dutiable property and want to make the most of the concessions and exemptions available to you give the team at WGC Lawyers a call today for sound legal advice in all phases of the transaction.