Stamp Duty, or Transfer Duty as it’s known in Queensland, can be a significant cost when purchasing your new property.
Stamp duty is a government tax that is due with every property purchase, paid by the purchaser within three months of the property transaction. It is calculated on a scale similar to income tax, meaning the more valuable the property, the higher the stamp duty payable. There are different rates depending on the nature of the purchase, whether it’s for your personal use or for an investment as well.
Have a look at the table below, taken from the Queensland Government webpage.
Each state government sets their own stamp duty rates and scales, so be sure to check your stamp duty payable for your the state that your property is purchased in.
Transfer Duty Concessions
The Queensland Government is actively trying to help First Home Buyers enter the market, and as such offer some great incentives to help get a foot in the door. To receive the most from this concession, there are a few requirements that you must meet.
To be eligible for the FULL First Home Buyer Concession, you must;
- Have not purchased property before
- You have never part-owned property before
- Are an Australian Resident or Australian Citizen
- Are over 18 years of age
- You commit to living in the purchased property for 12 months and will not sell the property or any part of it within this timeframe
- The purchase price of the property is less than $550,000
Luckily, you may still be eligible for a part-concession if you don’t meet all of the eligibility requirements. If your property is also valued at more than $550,000, you can receive a partial concession as shown below.
Why are we charged Stamp Duty?
This is a very good question!
Basically, the State Government uses your Stamp Duty as their insurance on the purchase, and the funds are also used for ‘Economic Development’ of the state that the property was purchased in. Some examples are the emergency services of the state as well as transport and infrastructure.
All things that you will need to live in this state and help increase the value of your home.
So how much will I pay on my property?
Each State Government offers insightful calculators for you to help you fully understand how much you’re required to pay as well as any concessions you may be eligible for.
For properties purchased in Queensland, head to the Queensland Governments page;