On Tuesday evening, the Queensland Government passed the Treasury (Cost of Living) and other Legislation Amendment Act.
The proposed changes set out in our previous news is now law and it will come into effect on 1 July 2012
The folowing is a summary of the changes.
1. 1 July 2012 "Home Concession" (also known as the "Principal Place of Residence Concession") rate of transfer duty will be reintroduced.
This Concession was abolished in August Last year thru the previous Qld State Government.
The changes relate to people who are putting a contract to buy a existing home and it is on or after 1 July 2012. This will result in a significant decrease in the amount of transfer duty payable for those buyers.
EG: Home purchase of $500,000.00
The Current rate would be $15,525.00 and the New rate will be $8,750.00.
$250,000 a saving of $4,075
$300,000 a savings of $5,325
$350,000 a savings of $6,575
up to $350,000 $1.00 for each $100 or part of $100
$350,001-$540,000 $3,500 + $3.50 for every $100 or part of over $350,000.00
$540,001 - $980,000 $10,150 + $4.50 for every $100 or part of $100 over $540,000
More than $980,000 $29,950 + $5.25 for every $100 or part of $100 over $980,000
Concessions are still available for those buyers buying their first home and those buying vacant land to build their first home.
Concessions will not be available for contracts made on or after 1 July which effectively replace contracts made before 1 July. ie if there is a problem that take you thru after that date you can not change the contract date to save of transfer costs. Contract your solicitor if you are wanting to arrange a long settlement on a property but are looking at putting in a contract before the end of the month.
Now for those of us that are buying an investment property under $980,000.00 the amount paid may increase under the new rates the following example shows if you purchase an investment property for $500,000.00 the current rate is $15,525.00 and the new rate would be $15,925.00 showing a $400.00 increase. These costs are tax deductable but if you are looking at buying an investment property now, best do it sooner rather than later saving enough to get a good Building and Pest Inspection done on the property. Every cent counts, best in your pocket. than as government dutys.
Now Great news for us Real Estate Agents, as at 1 July 2012 it is proposed that the Government is also going to cut down on our red tape and remove the requirements for sellers to provide a sustainability declaration prior to the sale of a residential home.
We all here at Nerang Real Estate Wish you all the best in your house hunting and hope we can help you all with any of your buying and selling needs. We are always available to help with anything.