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TRANSFER DUTY QLD, NSW & VIC

Transfer duty (also known as stamp duty or, in Victoria, land transfer duty) is a state tax charged when purchasing property in Queensland, New South Wales and Victoria.

Before purchasing a property, it is important to know what transfer duty your transaction will be subject to – it is often a sizeable figure and should be budgeted for when considering what properties you can afford and your lending arrangements.

We’ve set out a break down below of information on the applicable transfer duty across the states as at June 2024.

*** LEGISLATION PASSED IN QUEENSLAND TO INCREASE FIRST HOME CONCESSION THRESHOLD

New legislation was assented to on 18 June 2024 increasing the first home concession threshold (see details below).  The new threshold will apply to contracts signed on or after 9 June 2024

Please note, however, that even if a contract was signed on or after 9 June 2024, the previous thresholds will continue to apply if:

  • The transaction replaces an agreement for transfer made before 9 June 2024 which included the land; or
  • The transferee had an option to purchase the land or the transferor had an option to require the transferee to purchase the land granted before 9 June 2024 and exercised on or after 9 June 2024; or
  • Another arrangement was made before 9 June 2024 and its sole or main purpose was to defer the making of the agreement until 9 June 2024 or later so the new concession provisions apply.

Queensland

What is transfer duty calculated on?

Transfer duty is calculated on the ‘dutiable value’ of the land, being the unencumbered value of the property or the consideration, whichever is higher.

How do you calculate transfer duty?

Transfer duty is calculated by applying the relevant rate to the dutiable value of the property.

If no concession applies, the following rates are relevant: 

https://qro.qld.gov.au/duties/transfer-duty/calculate/rates/

If a concession applies (details below), the following rates are relevant: 

https://qro.qld.gov.au/duties/transfer-duty/calculate/concession-rates/

Are you eligible for a concession?

You may be eligible for the ‘first home concession’ if:

  1. You have never owned property before, in Australia or elsewhere;
  2. The property has a dutiable value below $800,000*;
  3. You will move into the property and live there on a daily basis within 1 year of settlement; and
  4. You will not dispose (sell, transfer, lease or otherwise grant exclusive possession) of all or part of the property before you move in.

* The State Government has recently passed legislation to increase the first home concession threshold from $550,000.00 to $800,000.00. This higher threshold will apply to contracts signed on or after 9 June 2024, noting the comments above.

Eligible first home buyers will pay NIL transfer duty on a purchase price of up to $700,000 and a partial concession will be available for properties with a purchase price of up to $800,000.

You may be eligible for the ‘first home vacant land concession’ if:

  1. You have never owned property before, in Australia or elsewhere;
  2. The land has a dutiable value below $500,000**;
  3. You will build your first home on the land and will move in and live there on a daily basis within 2 years of settlement;
  4. You will only build one home on the land;
  5. There is no building or part of a building on the land when you acquire it; and
  6. You will not dispose (sell, transfer, lease or otherwise grant exclusive possession) of all or part of the property before you move in.

* The State Government has recently passed legislation to increase the first home vacant land concession from $400,000.00 to $500,000.00. This higher threshold will apply to contracts signed on or after 9 June 2024, noting the comments above. 

Eligible first home buyers will pay NIL transfer duty on a purchase price of up to $300,0000 and a partial concession will be available for properties with a purchase price of up to $500,000.

Companies and trustees are typically not eligible for any of these concessions.

You do not need to be an Australian citizen or permanent resident to claim the concessions (but you may be subject to Additional Foreign Acquirer Duty).

Queensland Examples

Example – the property will be your primary residence:

Purchase price of $600,000

If the first home concession applies:

$Nil

If the home concession applies:
$10,150 + $4.50 x ($600,000 – $540,000)/100 = $12,850

Note: this example is based on the new thresholds and assumes a contract date of 9 June 2024 or later.

Purchase price of $1,500,000

Exceeds the threshold for the first home concession.

If the home exemption applies:
$30,850 + $5.75 x ($1,500,000 – $1,000,000)/100 = $59,600

Example – the property will be an investment:

Purchase price of $600,000

No concession applies:
$17,325 + $4.50 x ($600,000 – $540,000)/100 = $20,025

Purchase price of $1,500,000

No concession applies:
$38,025 + $5.75 x ($1,500,000 – $1,000,000)/100 = $66,775

* Calculations are based on rates and thresholds that apply as at June 2024. The above calculations also assume the purchaser is an Australian citizen.

New South Wales

What is transfer duty calculated on?

Transfer duty is calculated on the property’s sale price or current market value, whichever is higher.

How do you calculate transfer duty?

Transfer duty is calculated by applying the relevant rate to the value of the property.

The following rates are relevant:

https://www.revenue.nsw.gov.au/taxes-duties-levies-royalties/transfer-duty

Note: for high value properties, a premium duty rate will be also be payable. The current threshold is $3,505,000.

Are you eligible for a concession?

You may be eligible for the ‘First Home Buyers Assistance Scheme’ if:

  1. You are purchasing your first home in Australia;
  2. You are an Australian citizen or permanent resident;
  3. You will move into the property within 12 months of completion; and
  4. You will live in the property continuously for at least 12 months.

Under this scheme, you will receive an exemption if the property is valued up to $800,000 and a concession if the property is valued up to $1,000,000.

If you are purchasing vacant land to build a new home, you must:

  1. Move into the property within 12 months of completion of construction; and
  2. Live in the property continuously for at least 12 months.

Companies and trustees are typically not eligible for this scheme.

New South Wales Examples

Example – the property will be your primary residence:

Purchase price of $600,000

If the First Home Buyers Assistance Scheme applies:
$Nil

If you have owned property previously so that the exemption is not applicable:
$10,530 + $4.50 x ($600,000 – $351,000)/100 = $21,735

Purchase price of $1,500,000

Exceeds the threshold for the First Home Buyers Assistance Scheme so no exemption/concession applies:
$47,295 + $5.50 x ($1,500,000 – $1,168,000)/100 = $65,555

Example – the property will be an investment:

Purchase price of $600,000

No concession applies:
$10,530 + $4.50 x ($600,000 – $351,000)/100 = $21,735

Purchase price of $1,500,000

No concession applies:
$47,295 + $5.50 x ($1,500,000 – $1,168,000)/100 = $65,555

* Calculations are based on rates and thresholds that apply as at June 2024. The above calculations also assume the purchaser is an Australian citizen.

Victoria

What is transfer duty calculated on?

Land transfer duty is calculated on the dutiable value of the property, being the price you pay for the property or its market value, whichever is greater.

How do you calculate transfer duty?

Land transfer duty is calculated by applying the relevant rate to the dutiable value of the property.

If no concession applies, the following rates are relevant:
https://www.sro.vic.gov.au/rates-taxes-duties-and-levies/general-land-transfer-duty-property-current-rates

If a concession applies, the following rates are relevant: https://www.sro.vic.gov.au/fhbduty

Are you eligible for a concession?

You may be eligible for the ‘First Home Buyer Duty Exemption’ if:

  1. You are an Australian citizen or permanent resident;
  2. You have not owned residential property in Australia prior to 1 July 2000 and you have not lived in a home in Australia which you owned or part-owned on or after 1 July 2000 for a continuous period of at least six months;
  3. You will move into the property as your principal place of residence within 12 months of settlement; and
  4. You will live in the property as your principal place of residence for a continuous period of 12 months from settlement.

Under this scheme, you will receive an exemption if the property is valued up to $600,000 and a concession if the property is valued up to $750,000.

If you are purchasing vacant land, you must move into the property as your principal place of residence by the earlier of 12 months from the date you can lawfully live in the property and 36 months from settlement.

Companies and trustees are typically not eligible for this scheme.

Victoria Examples

Example – the property will be your primary residence

Purchase price of $600,000

If the First Home Buyer Duty Exemption applies:
$Nil

If you have owned property previously so that the exemption is not applicable:
$2,870 + 6% x ($600,000 -$130,000) = $31,070

Purchase price of $1,500,000

Exceeds the threshold for the First Home Buyer Duty Exemption so no exemption/concession applies:

5.5% of the dutiable value = $82,500

Example – the property will be an investment

Purchase price of $600,000

$2,870 + 6% x ($600,000 -$130,000) = $31,070

Purchase price of $1,500,000

5.5% of the dutiable value = $82,500

* Calculations are based on rates and thresholds that apply as at June 2024. The above calculations also assume the purchaser is an Australian citizen.

IF YOU HAVE ANY QUERIES ABOUT YOUR TRANSFER DUTY LIABILITY, PLEASE DON’T HESITATE TO CONTACT THE MAP LAWYERS TEAM
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