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?
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…]