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• eNews index
• Happy New Year!!
• PAMDA – Warning Statement disputes likely to continue thru 2010
• Stamp duty concessions - be careful on timing
• Commercial landlords save costs with leasing bureau

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Stamp duty concessions - be careful on timing

The Queensland Treasury has issued a public ruling* specifying the minimum occupancy requirements that qualify buyers for residential stamp duty concessions.

The Duties Act 2001 specifies that for any concession to apply in a residential purchase, the buyer must begin occupation of the property within 1 year of the transfer date. For residences to be constructed on vacant land, occupancy must start within 2 years of the transfer date.

The "transfer date" is the date the buyer is entitled to possession of the land which in most situations is the completion or settlement date.

The "occupation date" is the date the buyer starts occupying the property as their principal place of residence.

What constitutes a buyer’s principal place of residence is a factual question, but Treasury has listed the following factors amongst others, as being material:

• Whether the buyer has moved their personal belongings into the residence;
• Does the buyer’s family reside there;
• The extent of time the buyer stays at the residence;
• Is the residence the buyer’s mailing address;
• What is the buyer’s electoral roll address?

Buyers must remain in occupation for a full 12 months after the occupation date. If the buyer within that time disposes of the land eg by sale or lease, the buyer must pay that proportion of the full stamp duty on the purchase, represented by the fraction of the year during which it was not occupied or owned by them as their principal place of residence.

If a buyer disposes of the land before commencing occupation of it as their principal place of residence or if they fail to commence occupation within the relevant time, the concession is lost and the buyer must pay full duty.

Existing tenants?

If the residential property in respect of which a concession is claimed is leased back to the seller or there is an existing tenant, the seller or existing tenant must vacate the premises no later than six months from the transfer date and earlier if the lease expires.

It is important to note that there will be no concession applicable to a property where an existing lease expires more than six months after the transfer date.

Transfers between spouses/partners

A stamp duty exemption applies in respect of transfers of a principal place of residence from one party in a subsisting marriage or de facto relationship were the transfer is by way of gift and after the transfer, if it is owned by the parties as joint tenants or tenants in common in equal shares.

Note however that a transfer of a further ownership share between parties who are already joint owners attracts duty on the portion transferred.

*DA085.1.2 dated 3 July 2009

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