The Queensland Treasurer in his 2011/2012 Budget announced a number of reforms to State duties.
These changes will affect most people who are looking to buy a home or investment property, and include:
- Introduction of a Boost Grant of $10,000 for anyone buying or building a new home between 1 August 2011 and 31 January 2012;
- Abolition of the home concession (not first home concession) on transfer duty from 1 August 2011; and
- Changes to transfer duty rates.
How will the changes affect you after 1 August 2011?
| Property Type | First Home Buyer | Home Buyer | Investor |
| New Home |
Boost Grant available plus existing first home owner grant of $7,000 = extra $17,000. If purchase price over $500,000 buyer will pay more transfer duty as concession will be offset against new higher duty rates |
Boost Grant available Home buyers will now pay the same transfer duty as investors |
Boost Grant available |
| Existing Home | If purchase price over $500,000 buyer will pay more transfer duty as concession will be offset against new higher duty rates. | Home buyers will now pay the same transfer duty as investors. |
What is the Boost Grant?
You may be eligible for the Boost Grant of $10,000 (payable on top of the first home owner grant of $7,000) if:
- entering into a contract to buy or build a new home (including as owner builder) between 1 August 2011 and 31 January 2012; and
- the cost of the property being purchased or constructed is for less than $600,000.
The Boost Grant is available to home owners, investors and corporations provided someone will occupy the property within 12 months of the purchase.
Example of effect from abolition of home concession:
Where purchase price is $600,000:
| Type of Buyer | Current duty payable | Duty payable where contract entered into from 1 August 2011 |
| First Home Buyer | $12,850 | $20,025 |
| Home Buyer | $12,850 | $20,025 |
| Investor | $20,025 | $20,025 |
Changes to Transfer Duty Rates:
| Current rates | Rates from 1 August 2011 | ||
| Property Value | Rate | Property Value | Rate |
| Up to $5,000 | nil | Up to $5,000 | nil |
| $5,001 to $75,000 | 1.5% | $5,001 to $105,000 | 1.5% |
| $75,001 to $540,000 | $1,050 + 3.5% | $105,001 to $480,000 | $1,500 + 3.5% |
| $540,001 to $980,000 | $17,325 + 4.5% | $480,001 to $980,000 | $14,625 + 4.5% |
| Over $980,000 | Over $980,000 | $37,125 + 5.25% | $37,125 + 5.25% |
Summary of changes
The government is aiming to stimulate the construction industry which is great news for developers and builders.
The hardest hit are home buyers who are looking to purchase established properties. From August, they will need to budget for at least another $6,000 in transfer duty.
Calculation of transfer duty is complex and varies depending on your circumstances, please contact us if you would like to get an estimate of the transfer duty you may have to pay or to discuss if you are eligible for the Boost Grant or First Home Owners Grant.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.
