The rates for Stamp Duty and Land Tax in Queensland have recently been amended to provide additional charges for foreign and absentee land owners – do they apply to you?
Duty
An additional charge for Duty now applies at the rate of 3% of the GST inclusive transfer value where the acquirer is:
- A foreign individual,
- A foreign corporation, or
- A Trustee of a foreign Trust.
The definitions in the Act treat as foreign anyone who is not either an Australian citizen or a permanent resident of Australia. Importantly, a Trust is deemed to be a foreign Trust (Section 237 of the Duties Act) if at least 50% of the primary (often called residuary) beneficiaries in the Trust are foreign citizens / corporations.
Please note that the legislation allows a reviewing of this situation should it change at any time within 3 years of the date of acquisition (see Section 246A). [Read more…]
When purchasing a new home or land, there are many things to consider prior to signing the Contract. Having the knowledge regarding your rights and the Seller’s rights prior to signing the Contract could save you money, time and angst. Hollingworth & Spencer provide a comprehensive conveyancing service for both purchasers and sellers. Don’t be left wishing you had seen your solicitor first. We are available and happy to help. Give us a call!
