QLD Property Stamp Duty Increases
Written on the 14 March 2011 by G. Dean McKinnon
We recently discovered a nasty little change to the principle place of residence (PPR) stamp duty concession by the Queensland Office of State Revenue (OSR).
Quite often when you're buying a new home you may not be able to move into it immediately because it is tenanted or you haven't sold your own home. Until recently, the OSR was mindful of these circumstances and still allowed the PPR concession, as well as providing you with a reasonable amount of time to sort out your affairs.
Effectively, this meant that you were able to rent out the new home for up to twelve (12) months, which would then give you a reasonable amount of time to sell your existing home, or wait for the tenant's lease to expire.
If you had to borrow for the new home, you could then use the rental income to offset the interest cost.
Now the OSR will only allow the PPR concession if there is an existing lease, or the seller wants to rent the property back from you, and only then for a maximum period of six (6) months. Which means you can't rent out the property to a new tenant whilst your waiting to move into the new home.
Contact us if you require assessment for your own circumstances.
Author:G. Dean McKinnon