RECENT CHANGES TO FIRST HOME OWNERS EXEMPTIONS, GRANTS & STAMP DUTY

First Home Owners Exemption & Grants

From 1 September 2008 the First Home Owners exemption threshold was increased to $500,000.00. A first home purchased after this date where the value/purchase price is $500,000.00 or less will not incur Stamp Duty.

Prior to 14 October 2008 the standard First Home Owners Grant was $7,000.00. As a result of the credit crisis during the latter part of 2008 the Australian Government increased the First Home Owners Grant for Contracts dated from 14 October 2008 to 30 June 2009 as follows:-

• Established Homes - $14,000.00
• New Home or Newly Constructed Home - $21,000.00

A contract dated prior to 14 October 2008 cannot be cancelled, rescinded, replaced or altered to show a new Contract date after14 October 2008 for the sole purpose of receiving the increased grant as the Buyer will not be eligible. The Office of State Revenue will be carefully examining all applications for the increased grant. The Office of State Revenue will have in place during this period an anti-avoidance provision in respect of contracts dated prior to the 14 October 2008 that have been cancelled, rescinded, replaced or altered.

After the 30 June 2009, the First Home Owners Grant will revert to $7,000.00 as was in place prior to 14 October 2008.

Where an individual owns or has owned an investment property but has never lived in that investment property, the individual is eligible to received the First Home Owners Grant but not the first home owners exemption. The principal place of residence concession will apply (see below).

Principal Place of Residence - Home Concession

From the 1 July 2008 the principal place of residence concession threshold was increased to $350,000.00. A home purchased to be the principal place of residence where it is not a First Home incurs Stamp Duty of 1% of the value/purchase price up to $350,000.00.

Vacant Land

Buying vacant land upon which a first home is to be constructed will attract the First Home Owners Grant but not the exemption. A reduced rate of stamp duty will apply.

Buying a vacant block of land upon which a principal place of residence (not first home) is to be constructed will not receive a stamp duty concession. The full investment rate will apply.

Investment, Company & Trusts

Buying a property as an Investment, in the name of a Company or a Trust will not attract a stamp duty concession. The full investment rate will apply.

To calculate your stamp duty, use the Office of State Revenue stamp duty calculator using the link provided.

http://www.osr.qld.gov.au/calculators/duties/index.shtml

Select Calculate Transfer Duty - Returns Lodgement

MORTGAGE DUTY

Mortgage Duty has been abolished for all mortgages dated after 1 July 2008.

LEASE DUTY

Lease Duty has been abolished for all leases dated after 1 January 2006.

Should you have any questions regarding Stamp Duty, please do not hesitate to contact Robert Ross of this office on 5510 3337.