When considering the purchase of real estate,
there are a number of expenses you must factor
in and the largest of these is usually stamp
duty - which, in Queensland, is also known
as transfer duty.
Stamp duty is a key source of revenue for
the state government. Unless you pay it, you
will not be able to have the property registered
in your name at the titles office and in most
cases, a bank won’t lend you money to buy
unless it first sees evidence that the duty
has been paid.
I’m John Gallagher from Argon Law, and I
would like to tell you a little bit about stamp duty in
Queensland and some of the circumstances where discounted rates of stamp duty are available.
The bad news is that if you are buying a property
as an investment, whether it be residential
or commercial, with no intention of living
there, there are no discounts available.
Stamp duty is calculated on a sliding scale,
which means that the higher the price the
higher the rate of duty payable. For example,
with investment properties, you pay 3.5% of
each dollar of the purchase price over $75,000
and 4.5% of each dollar over $540,000.
Once the price exceeds $1M you pay 5.75% of each
additional dollar paid.
Discounted rates of stamp duty apply when
you buy a property as your home and the best
news is that if it is your first home, there
is no duty payable until the purchase price
exceeds $500,000.
In order to be eligible for those discounts,
you must move in to the property within 12
months of buying it and you must continue
to live there for 12 months after you move in.
I trust that you have found this video useful, and to stay in touch with future videos
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If you have any queries, or would like us to do a precise stamp duty calculation for you, please don't
hesitate to call or get in touch at argonlaw.com.au.
