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Media Releases
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| -- FIRST HOMEBUYERS TO PAY NO STAMP DUTY TO $320,000.-- |
| Comment by Finance Consultant Les Scott. |
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First Home Buyers will not be required to pay stamp duty on vacant land up to $150,000 or on an established home up to $320,000 from 1 January 2007. For the first time transfer stamp duty concessions will be extended to include the purchase of vacant land for first homebuyers building their own home. On a vacant block of land valued at $150,000 this will be a savings of $3,975 to a first home buyer.
These changes are included in the Queensland State Government’s Revenue and Other Legislation Amendment Bill 2006 which received Royal assent on 10 November 2006. For first homebuyers the changes are outlined by the Queensland Government Office of State Revenue as:
“Providing a new first home transfer duty concession for acquisitions of vacant land, commencing on 1 January 2007, as announced in the 2006-07 State Budget and the 2006 election. The new concession will apply so that for eligible vacant land purchases valued up to $150,000, no transfer duty will apply and there will be a reduction in transfer duty payable for vacant land purchases valued over $150,000 and less than $300,000. Once the value of the vacant land reaches $300,000, the concession will not apply and full transfer duty will be payable.
Extending the existing first home transfer duty concession for established homes, commencing on 1 January 2007, as announced in the 2006 election. The full transfer duty rebate threshold will be increased from $250,000 to $320,000 so that no duty will be payable by a person purchasing an established first home valued up to $320,000. In addition, there will be a reduction in the transfer duty payable for first home buyers purchasing an established first home valued over $320,000 but less than $460,000.”
The inclusion of transfer stamp duty concessions on vacant land is a welcome initiative in assisting first home buyers who wish to build their own home. The home finance and building industries would welcome this change in particular, as it is considered to be long overdue. It has always seemed an inequity that first homebuyers building a home had to pay transfer stamp duty at an investment rate on the vacant land,while if they purchased an existing home as a first home buyer they could receive a transfer stamp duty concession. |
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Les Scott is a partner in Les Scott and Associates-Home Loan Specialists
Email: les@homeloanspecialists.net Phone 07 3288 6400, mobile 0427 064 650.
Website: homeloanspecialists.net |
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