Home and First Home Concession
A recent court case changed the stamp duty concessions for owner occupiers. You may be aware that if you are going to live in the property you are buying you will receive a discount on the amount of stamp duty you pay. It is approximately $7,000 for owner occupiers and for first home owners you don’t pay any stamp duty if the price is under $500,000. If it is over $500,000 you typically only receive the same discount as owner occupiers.
The law is fairly complex, so I have put together some examples of how it works in practice.
- Existing tenant where the lease expires 10 months after settlement. Can still claim the principle place of residence concession.
- Agreement is reached with the owner before settlement to stay on after settlement. Can claim the concession providing the seller vacates within 6 months and the period is not extended at any stage after the settlement date even if it is still within the 6 month period.
- Existing tenant where tenancy expires 4 months after settlement but continues in occupation under a periodic tenancy for a further 6 months. Can claim the concession.
- Existing tenant who reaches an agreement with the buyer after settlement to extend the tenancy from 4 months to 5 months. The concession is lost. Grist v Commissioner of State Revenue (2014) QCAT 259.
- The buyer enters into a tenancy agreement before settlement. The concession is lost unless the tenant had possession of the property before settlement and vacates within 6 months of settlement.
- The seller enters into a tenancy agreement with a tenant (with the consent of the buyer) prior to settlement. Can claim the concession providing the buyer takes possession within 12 months.