HOW MUCH STAMP DUTY WILL I PAY?
In Queensland, when you buy property you may have to pay transfer duty (also known as Stamp Duty).
Our experienced staff can provide an estimate of the duty which may be payable on your purchase, and advise you as to any concessions or exemptions which may be available.
When Does Stamp Duty Apply?
In Queensland, transfer duty, sometimes called stamp duty, is a tax on dutiable transactions such as:
- a transfer of dutiable property
- an agreement for the transfer of dutiable property
- a partnership acquisition
- the creation or termination of a trust of dutiable property
- a trust acquisition or surrender.
Previously, the Stamp Act 1894 imposed transfer duty in Queensland; it was then replaced by the Duties Act 2001.
Because the term ‘stamp duty’ applies to a wide range of transactions, the Duties Act separates duties into types so you can easily understand what duty is being charged on.
Transfers = Transactions
Transfer duty applies whenever you sell, buy or transfer property—such as land or rights to land—in Queensland. Transfer duty is charged on ‘dutiable transactions’ (i.e. transfers that duty applies to) for a property.
Dutiable transactions may include:
- signing a contract to buy or sell a home
- giving a half-share of a property you own to your spouse as a gift (unless it is your principal place of residence, in which case you might be eligible for an exemption)
- giving someone access across your property (an easement)
- creating a trust over land that you previously owned in your own right for your children or family members.
Types of duty
The different types of duties that you could pay are:
Sometimes you may need to pay more than 1 type of duty for a single transaction. For example, the transfer of a limousine business could involve paying both transfer duty and vehicle registration duty.
Other types, such as mortgage duty and lease duty, no longer apply.
WHAT IS DUTIABLE VALUE?
In Queensland, transfer duty on land is usually calculated on either the unencumbered value of the property or the amount you agree to pay (the consideration), whichever is higher. The higher amount is called the ‘dutiable value’.
This means that transfer duty can apply even when no money is paid or the transfer is a gift. Read the public ruling about when valuations are needed for transactions with no consideration (DA505.1).
The rates of duty apply to the dutiable value of the property to determine how much you have to pay. You can use the transfer duty estimator to get an idea of the duty or speak with your property conveyancing expert at Central QLD Conveyancing Centre for more information.
Concessions and exemptions may apply to a dutiable transaction, so you may have less or no duty to pay if you’re eligible.