Some people buying their first home are very uninformed about the range of fees and charges, over and above the price of the home, that are involved with such a purchase. The concept of stamp duty can come as somewhat of a shock if they are unaware of its existence, and this can lead to a major hole in their budget. This is a cost that must be factored into any calculation of the capacity to borrow, and to find out about it after the fact causes major stress to the purchaser who must then find that additional money in time for settlement.
For the uninitiated, stamp duty or as it is now known, transfer duty, is a state government tax that is levied on documents that influence certain types of transactions under the provisions of the Duties Act 2001. Like any government legislation, there are rules set down that detail when transfer duty is payable, how it is calculated, and when it must be paid. When purchasing a property, and not knowing much about conveyancing in Gold Coast property buyers are well advised to seek professional legal assistance. However, here is some general information that may be of help:
When can Stamp Duty on Transfers be charged?
Queensland stamp duty is charged on documents produced and signed in Queensland. This doesn’t mean that if the documents are all taken over the border, signed there and brought back, that stamp duty can’t be charged. There is another condition that prevents this activity. Stamp duty is also levied on documents that are signed outside of Queensland that relate to a property, an action or other business within Queensland.
How Much Stamp Duty Is Payable?
In the case of a home purchase, this depends on whether the home will be the purchaser’s principle place of residence or whether the purchase is for the purposes of investment such as a rental property. The stamp duty is calculated on the value of the property or the consideration paid.
When Is The Payment Made?
The purchaser pays the stamp duty to the solicitor who then arranges for the funds to the paid to the Office of State Revenue, Queensland.
Are There Any Concessional Provisions?
There are concessional rates that can apply if certain eligibility criteria are met. The Office of State Revenue, or a solicitor, can advise if a transaction qualifies.
The rules around stamp duty on transfers can be tricky, and in legal matters involving real estate transactions, many things can go wrong. The best protection for someone purchasing property is to place the whole matter in the hands of conveyancing solicitors in Brisbane, whose legal knowledge and professional experience will make the transaction a positive experience.