Changes to Real Estate Stamp Duty & Grants

State stamp duty rates and home ownership grants have significant effects on Australian real estate buying and selling.  Since most states have recently announced their budgets, there have been a few changes.

And, it’s important to know since it affects the bottom line.  For example, owner occupier buyers in Queensland buying before 1 August 2011 can save $6,575 in stamp duty because concessions are being scrapped on that day.

Here’s a quick state by state rundown.

Victoria - for real estate settlements after 1 July 2011, land transfer duty rates are reduced for eligible first home buyers purchasing their principal place of residence for up to $600,000. Duty will be reduced by 20% now, and by additional 10% on 1 January 2013, 1 January 2014 and 1 September 2014, reaching a total reduction of 50%. Additionally, the first home bonus and regional bonus is extended to 30 June 2012, providing first home buyers with a $13,000 bonus for newly constructed homes and an additional $6,500 if the new home purchase is in a regional location.

Queensland – the existing stamp duty concession for houses under $350,000 ends and the existing $3,500 payable in stamp duty jumps to $10,075.  New home buyers also get a short term $10,000 ‘Queensland building boost grant’ which will be available on newly built homes purchased prior to the start of 2012. And, the $7,000 first home owner’s grant remains in place.  Stamp duty rates have also changed (increased).

South Australia – there are no changes to stamp duty rates, but the First Home Buyers Grant will be phased out by halving of the grant on 1 July 2012 and phasing it out on 1 July 2013.

Tasmania – there are no changes to stamp duty rates, but the concession on land purchases for first home builders and for first home buyers have been cancelled.

Northern Territory - there are no changes to stamp duty rates and the concession available to first home buyers and owner occupier buyers continues.  Plus a ‘BuildBonus’ has been introduced with a $10,000 incentive for purchasing or building a new home. 

So, there’s mixed news for real estate buyers around Australia.

Francesco …