To reduce the costs of purchasing property in Queensland, the Office of State Revenue allows various concessions on Stamp Duty for different purchasers depending on their situation and the intended use of the property. One of these concessions is the “Home Concession”, commonly also referred to as a “Principal Place of Residence Concession”.
The home concession applies to buyers that intend on moving into their new property within one year of the settlement date (your solicitor or conveyancer will be able to notify you what the settlement date is if you are unsure). There is also the added requirement that the property be the buyers’ principal place of residence – defined as a residence that the buyer will live in on a daily basis. This should be easy to determine for most buyers.[1]
The concession works on the basis that the first $350,000.00 of the purchase price is calculated at a discounted rate (if a property is valued at or sold at under $350,000.00 then a discounted scale is used to determine stamp duty and this will be the only amount payable). After the $350,000.00 limit is reached, the general transfer duty rates apply to the balance.[2]
When a concession is claimed it is important that the transfer and contract are stamped at the correct, discounted amount, and prior to payment, a Form D2.1 declaration is signed and witnessed by a qualified witness. Your Solicitor or Conveyancer should be able to guide you through this process.
After a settlement has occurred and a Stamp Duty Concession has been obtained, the buyer should remain in principal occupation of the property for at least one year of the date that the buyer moves in, and should not give rights to use the property to anyone else – e.g. renting out a room. It is important that the property remains for exclusive use of the buyer that has claimed the concession. [3]
If you would like more information on stamp duty and the conveyancing process, or would like to enquire about using Greenhalgh Pickard for a conveyance, feel free to contact me at info@gpla.com.au
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[1] For more information on the definition of Principal Place of Residence please see : https://www.osr.qld.gov.au/duties/glossary.shtml?letter=p and Public Ruling https://www.osr.qld.gov.au/legislation-rulings/public-rulings/duties/da085-1.shtml
[2] For more information on discounted rates, please see: https://www.osr.qld.gov.au/duties/transfer-duty/home-transfer-duty-rates.shtml and for information on the general rates see: https://www.osr.qld.gov.au/duties/transfer-duty/transfer-duty-rates.shtml
[3] For information on the definition of disposal please visit: https://www.osr.qld.gov.au/duties/transfer-duty/exemptions-and-concessions/disposal-concession.shtml