Queensland investors to be worse off under higher transfer duty rate for $1 million-plus purchases

Queensland commercial and residential property investors face a higher stamp duty bill following changes announced in the state budget yesterday.

The Newman government has lifted the threshold for the highest rate of transfer duty from $980,000 to $1 million, but has increased the top rate from 5.25% to 5.75%.

The higher stamp duty rate is expected to provide the Queensland government with an extra $37 million, with transfer duty revenue rising from $55 million to $92 million.

Under the previous stamp duty regime, an investor buying a property worth $1 million would be liable for stamp duty of $38,175 – an updated calculator is not yet available on the Queensland government website.

Concessions for non-first home buyers buying a home were introduced on July 1 last year, providing a concessional stamp duty rate of 1% up to a purchase price or value of $350,000.