The A to Z of transfer duty in Queensland
If you are looking to purchase a property, you are likely to be affected by transfer duty (formally known as stamp duty). The A to Z? It’s a pain in the A*** and its as certain as stripes on a ZEBRA.
How to avoid it you ask?
If you are buying your first property and the home is valued less than $500,000.00, you may be eligible for the First Home Concession.
The First Home Concession is separate from the First Home Owners Grant which applies to new properties.
How to minimise how much you pay?
If you are not buying your first property, you may still be eligible for the Home Concession which is a lower rate of transfer duty.
To see if you are eligible for the Home Concession, please see: https://www.qld.gov.au/housing/buying-owning-home/advice-buying-home/transfer-duty/how-much-you-will-pay/concessions-on-transfer-duty/concessions-for-homes/home-concession
If you are purchasing an investment property or vacant land, it is likely you will have to pay the full transfer duty rate.
When is transfer duty due?
Transfer duty is payable 30 days after the date of the contract is signed or in some cases, 30 days after the contract goes unconditional. If you are purchasing a property with a standard 30 day settlement, the transfer duty is paid on settlement.
If you are purchasing a property with an extended settlement, you will need to allow for payment of transfer duty prior to settlement.
How is transfer duty paid?
If the transfer duty is due on settlement, we will ensure that it is paid out of the settlement funds. If you have an extended settlement, we will ask that you transfer the funds into our trust account and we will attend to payment on your behalf.
What is additional Foreign Acquirer Duty
If you are not an Australian Citizen or permanent resident, you will be liable for Additional Foreign Acquirer Duty (AFAD). Note: A permanent resident holds a permanent visa, or is a NZ Citizen with a Special Category Visa.
AFAD is calculated at 7% of the purchase price and is payable on top of any standard transfer duty liability.
How will I know how much I need to pay?
As part of our conveyancing services we will calculate and pay your transfer duty liability on your behalf. We are registered self assessors of the Office of State Revenue.