August 2008

Can first homers buy now and still get the September $500k stamp duty exemption?

The Queensland Government has enacted provisions that prevent the use of put and call options to gain the benefit of the post-September 1 stamp duty exemption applicable to first-time buyers.

When a person signs a put and call option or irrevocable offer, different rules apply relating to the time of entry into of the contract. The parties sign an option now but the contract doesn’t come into existence until the option is exercised.

This device could have been used to enter into an option now but delay the entry into of the contract until after September 1.

The Revenue and Other Legislation Amendment Act 2008 specifically prevents this.

First-time buyers will have to wait until September 1, to get the full first-home buyers exemption on homes up to $500,000.

Call 1300 LAW LAW (1300 529 529) for help with any put and call option or conveyancing needs.

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