Transfer duty
Transfer duty was previously referred to as stamp duty.
A transfer duty liability is created when a person enters into a dutiable transaction relating to dutiable property in Queensland.
In most instances, transfer duty is calculated on the value of the property or consideration involved. Depending on the nature of the transaction, certain concessions and exemptions are available.
For current rates, refer to the rates of duty page of this website.
Self assessment stamping is a method of accounting for duty and tax by periodic return, also known as in-house stamping. It involves the self assessment of duty on transactions and instruments, endorsements of documentation and payment with lodgement of a periodic return, usually weekly or monthly.
Taxpayer's agents (solicitors and financial institutions) are required to use this self assessing facility.
Further information regarding transfer duty, dutiable transactions and dutiable property is available through the information sheets on the Duties webpage, for example Information Sheet SA1 - Self assessment of transfer duty (PDF 195 K).
Outlined below is the fundamental information required to self assess and account for duty by return, and the dutiable transactions that must be, must not be and may be self assessed.
Documents which must be self assessed
Documents which must not be self assessed (that is, documents which are to be lodged for commissioner assessment)
Documents which may be self assessed
- transfers and contracts for the sale of commercial real property
Homebuyers receive transfer duty concessions to minimise the cost of acquiring a home, making home ownership more attainable. Transfer duty concessions are available for home buyers, first home buyers and, buyers of first home vacant land.
For more information see the rates of duty and exemptions and concessions pages of this website.
The Office of State Revenue (OSR) conducts an active compliance program to ensure homebuyers receive their correct entitlements and meet their obligations under the Duties Act 2001.
The Investigations Division in OSR uses data matching and other measures to identify home concession claims where applicants may no longer be eligible. Additional duty, significant penalties and interest may apply in these circumstances. In cases where an offence has been committed, taxpayers may be prosecuted.
What is the home buyers/first home buyers concession?
Transfer duty concessions are available for home buyers, first homebuyers and, buyers of first home vacant land.
The home buyers/first homebuyers concession is in addition to the $7,000 First Home Owners Grant.
When is the home concession reduced or lost?
The home concession may be reduced or lost entirely where a claimant –
- does not occupy the home as their principal place of residence within –
- 1 year of the transfer date of the home (residential land) or
- 2 years after the transfer date for vacant land, OR
- transfers, leases or otherwise grants exclusive possession of all or part of the home (residential land) or vacant land either –
- before occupying the home or
- within 1 year of starting to occupy the home as their principal place of residence.
What is the claimant required to do?
Claimants must notify the Commissioner of State Revenue (the Commissioner) within 28 days of any relevant change in their circumstances. If the claimant is no longer eligible for the home concession, they may incur a further duty liability, liability for penalty tax and unpaid tax interest (UTI). Penalty tax, if applicable is applied in accordance with Revenue Ruling Tax Administration 4.3 – Penalty tax home concessions.
How can professional advisors assist their clients?
Professional advisors can help ensure their clients receive their correct entitlements by:
- asking clients who are buying and/or selling a home about any properties for which they have previously claimed a home concession
- advising clients that they must notify the Commissioner of any change in their circumstances that may affect their eligibility for the concession.
Professional advisors who have a client that is no longer eligible for the concession can submit a Form OSR – D2.4 Reassessment – home transfer concession to OSR on behalf of their client. Voluntary disclosures are ordinarily treated with lower penalties than breaches identified through the compliance program.
For more information
- View the 'Transfer duty - concessions for homes' information on the exemptions and concessions page of this website.
- Refer to Revenue Ruling DA1.2 Concessions for homes and first homes – residential purposes
- Refer to Revenue Ruling DA2.2 Concession for homes and first homes - occupancy requirements.
If you cannot find all the information you require on the website, then you can call the OSR Client Contact Centre on 1300 300 734.
When you acquire a business or the assets of a business in Queensland, you are required to pay transfer duty.
Note: Transfer duty payable on the transfer of non-realty business assets is to be reduced by 50% from 1 January 2010, and abolished in full from 1 January 2011.
When you acquire an interest in a partnership that has dutiable property in Queensland, you are required to pay transfer duty.
Transfer duty is payable on the creation or termination of a trust over dutiable property and also trust acquisitions and trust surrenders.
Superannuation funds receive a transfer duty concession on certain transactions.
Further information on concessions for superannuation is available from the exemptions and concessions page on this website.
Subject to conditions, certain types of dutiable transactions involving family business property are eligible for transfer duty concessions (see Duties Act, Chapter 2, Part 10).
'Business property' means:
-
land primarily used to carry on a business of primary production or a prescribed business, or
-
personal property used to carry on the business on the land.
Further information on concessions for family businesses can be found on the exemptions and concessions page of this website.
Transfer duty is payable if a taxi licence or limousine licence in Queensland is transferred or agreed to be transferred.
Transfer duty reimbursment
Purchasers of land who enter into a Conservation Agreement with the Environmental Protection Agency (EPA) to protect the land's conservation values are eligible for reimbursement of the transfer duty paid on the land purchase.
Eligibility criteria are as follows:
The land must be purchased on or after 1 July 2003.
The land must include vegetation, plants or animals that are considered by the EPA to have a high conservation value. Potential buyers are urged to consult with their local EPA office for advice on the conservation value of the land.
The land-holder must enter into negotiations with the EPA to establish a Conservation Agreement with the EPA to create a nature refuge over part or all of the land within 12 months of the purchase.
Once the Conservation Agreement is finalised, the EPA will reimburse the land-holder for the full amount of transfer duty paid on the purchase, or on a pro rata basis if the Conservation Agreement is over part of the land.
For information contact:
Nature Refuge Project Officer
Environmental Protection Agency
Ph. (07) 3225 1740
http://www.epa.qld.gov.au/link/?id=237
Ex gratia relief from transfer duty is available for certain land transactions entered into in settlement of native title claims. Transfer duty relief is limited to land used soley or almost solely by or for native title claimants for traditional or residential purposes. Relief is not available for land used for commercial purposes.
For full information, read the transfer duty practice direction DA 76.1.
Applications for ex gratia relief must be accompanied by a statutory declaration, and must include all the usual documentation required by the Commissioner under the Duties Act 2001 and Taxation Administration Act 2001, for example, transfer documentation, valuations where necessary and approved forms.
Applications should be directed to:
Manager, Duties
Office of State Revenue
GPO Box 2593
BRISBANE QLD 4001
Any queries regarding the administrative arrangement should be directed to Tony Clayton (ph. (07) 322 77119) or Jim Bush (ph. (07) 322 77375) of the Office of State Revenue.
On 30 July 2007, the Honourable Anna Bligh MP, Deputy Premier, Treasurer and Minister for Infrastructure, announced that home concessional duty is allowable in circumstances where a unit in a retirement village under a retirement village scheme registered under the Retirement Villages Act 1999 is occupied under a lease and sub-lease occupancy arrangement between the resident and the retirement village operator. View the media release.
For full information, read the transfer duty practice direction DA 81.1
Pending amendment to the Duties Act 2001, the home concession will be allowed under an administrative arrangement. The administrative arrangement will apply to transactions effected on or after 26 July 2002.
To obtain the home concession in terms of the administrative arrangement, persons who purchase a unit in a registered retirement village under a lease and sub-lease are required to complete a statutory declaration instead of an approved form 2.1. Where there are joint purchasers, each individual must complete the required statutory declaration.
Ex gratia refunds
Persons who have already paid transfer duty or mortgage duty in respect of the purchase of a unit in a registered retirement village since 26 July 2002, who did not receive the home concession because they entered into a lease and sub-lease occupancy arrangement, may apply for an ex gratia refund of the excess duty.
A statutory declaration (ex gratia) must be completed by each purchaser claiming an ex gratia refund.
Refund applicants should ensure that they:
- are fully aware of the conditions of the administrative arrangement, including the circumstances in which they can be required to repay the refund; and
- enclose the original stamped documents with their application, to verify the duty paid.
Refund applications should be directed to:
Senior Revenue Officer
Duties Branch
Office of State Revenue
GPO Box 2593
BRISBANE QLD 4001
If you need further information, please call our Client Contact Centre on 1300 300 734.
