Queensland to introduce owner-occupier stamp duty cuts from July 1 as other state schemes come to an end

Queensland will extend stamp duty concessions to a wider range of home buyers from July 1, as a batch of other state government handouts and concessions come to an end.

The Queensland state government will reinstate the transfer duty home concession scheme, which was abolished on August 1 last year, from July 1, 2012.

It will provide a concessional stamp duty rate of 1% up to a value of $350,000, with stamp duty charged at normal rates for the remaining value of the home purchase.

The buyer must occupy the home for a period of 12 months – an applicant may lose the concession if he sells or leases part or all of the home before moving in or within a year of moving in.

A separate stamp duty concession scheme remains in place for first-home buyers, who pay no duty on purchases up to $500,000, with a phasing-out rebate applicable for values up to $600,000. To qualify, the buyer must be eligible for the first-home buyer grant of $7,000.

NSW

The new financial year will also bring in the NSW government’s new home grant scheme, which will provide a $5,000 grant to buyers of new homes, whether off the plan or newly built, with a value up to $650,000 and to buyers of vacant land that is intended to be the site of a new home valued up to $450,000.

The scheme will replace the far more generous NSW government's home builders’ bonus, which provides full exemption on stamp duty for new homes up to a value of $600,000 and vacant land up to $400,000.

Victoria

From July 1 two bonus schemes aimed at first-home buyers in Victoria will no longer be available – the $13,000 first-home bonus, which has run for three years, and the $6,500 regional bonus, which has run for two years.

These schemes will not be replaced.

Instead, first-home buyers will have to wait until January 1, 2013, when the existing 20% stamp duty discount first-home buyers spending less than $600,000 on a home purchase will be increased to 30%.

The stamp duty discount will rise to 40% on January 1 2014 and to 50% on September 1 2014.

To qualify for the stamp duty discount, first-home buyers must also qualify for the federal $7,000 first-home owners’ grant.

South Australia

From July 1,the  first-home bonus grant of up to $8,000 available to first-home buyers who qualify for the federal $7,000 first-home owner grant will be reduced to $4,000 and will be fully abolished from July 1, 2013.

Stamp duty cuts have already been introduced for off-the-plan buyers in the Adelaide City Council area, including North Adelaide, aimed at encouraging higher-density inner-city living.

Between May 31, 2012, and June 30, 2014 the state government is offering a full stamp duty concession for off-the-plan apartments valued up to $500,000, providing a maximum concession of up to $21,330.

From July 1, 2014, to June, 30, 2016, there will be partial exemptions, meaning a concession of up to $15,000.

ACT

The home buyer concession scheme (HBCS) will end on June 30. The scheme provides stamp duty concessions on homes worth up to $470,000 and vacant land up to $260,000. To qualify, applicants must satisfy a combined income test for one year prior to the date of the grant starting from $120,000 for applicants with no children and up to $136,650 for applicants with five or more children.

No new schemes were introduced in the May 2011-12 ACT budget.

Larry Schlesinger

Larry Schlesinger

Larry Schlesinger was a property writer at Property Observer

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