What is Transfer Duty? and when is it paid?

What is Transfer Duty? and when is it paid?

By Aaron Booth on Feb 14 2017


Transfer Duty – formally known as Stamp Duty, is a levy payable

Transfer Duty – formally known as Stamp Duty, is a levy payable under the Duties Act 2001. In Queensland, when it comes to property transactions, it is payable when buying, selling or the transferring of property – such as land or the rights to land.

When purchasing property in Queensland the amount payable is percentage based upon the agreed amount of the transaction between both parties. When you buy land in Queensland, the dutiable value is usually either the unencumbered value of the property or the amount you agree to pay – whichever is higher. This means that transfer duty can apply even when no money is paid or the transfer is a gift. The higher amount is referred to as ‘dutiable value
 
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
  • 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.
 
Concessions and exemptions may apply, for instance first home buyers are exempt from paying Transfer Duty, so depending on your circumstances, if you’re eligible, you may have less or no duty to pay.
 
For more information on Transfer Duty, visit the Queensland Government website at https://www.qld.gov.au/housing/buying-owning-home/transfer-duty/ and as always for any uncertainties LJ Hooker Forest Lake is always here to answer any questions you may have.

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