Mortgage duty
Mortgage duty has been abolished from 1 July 2008.
Previous to 1 July 2008, when you entered into a mortgage over property in Queensland, you were required to pay mortgage duty. The previous mortgage duty rates can be found on the rates of duty page.
Mortgage duty
In Queensland, duties are usually imposed on transactions. However, mortgages are treated differently and duty is imposed on the mortgage documents. You are only required to pay duty if the mortgage is for property that is entirely or partly in Queensland.
You are required to pay duty when you first sign the mortgage document. If you later extend your mortgage so that the total amount exceeds the amount the mortgage document was originally stamped for, you must pay duty on the additional amount.
You must also pay duty when you enter into a mortgage created by deposit of title deeds. The liability to duty arises at the time the title deeds are deposited.
As the person entering into the mortgage (the “mortgagor”), you are responsible for paying the duty (your bank, or other financier, is known as the “mortgagee”).
Concessions for home mortgages
Mortgage duty concessions minimise the cost of acquiring a home, making home ownership more attainable.
There are three concessions:
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home mortgage
-
first home mortgage
-
home refinance mortgage.
Releases of mortgages
From 1 January 2008, the Queensland Land Registry will accept a Form 3 for registration without the need to be stamped in any way.
Caveats
Duty is only imposed on a caveat claiming an interest in land or a water allocation under a mortgage if duty is imposed, but not paid, on the mortgage. In these circumstances, you would be required to pay the duty as if it were imposed on the mortgage.
Self assessment - Mortgage duty
Mortgage duty is imposed on instruments that are mortgages and particular caveats. Instruments chargeable with duty under Chapter 5 of the Duties Act 2001, are to be self assessed, stamped in-house and accounted for by return.
Concessions for home mortgages and first home mortgages, reassessments for mortgage duty and multi-jurisdictional calculations are to be included in returns.
Further information can be obtained from Information Sheet SA2 - Self assessment of mortgage duty.
