Can I still claim QLD stamp duty concession if I rent out a room in first 6 months?

Hi all,

My first actual post on here. And it's just a quick one...

On the QLD government website all it says is that I'd have to move in within 12 months, and live there for 6 months. But it says nothing about renting out a room in that first 6 months.

I can't find an answer to this question. Could someone clarify this for me please?

Thanks

 

Keep it cash, no problem.

 

You can't rent out a room within one year from the date of occupation as this is deemed to be disposing of part of the property. The same applies to the first home owners grant.

Relevant sections of the Duties Act for the transfer duty concessions are:

First home: Duties Act 2001 - SECT 92 92 Concession—first home

Home: Duties Act 2001 - SECT 91 91 Concession—home

See s 153(1)(b)(ii): Duties Act 2001 - SECT 153 153 Reassessment—disposal after occupation date for residence

DO NOT DO THIS WITHOUT FURTHER LEGAL ADVICE...but one potential way around this would be to grant someone a non-exclusive licence to use certain parts of the property. This would require a licence drafted by a lawyer with this in mind to ensure you do not accidently grant exclusive possession to the occupier (ie a lease). This would then need further consideration of whether it is caught under the residential tenancy legislation. From the tenant's perspective it would be far from ideal to be on a licence to occupy rather than a lease so this might scare some people away.

On the topic of keeping it cash - Putting aside the fact it's illegal, you can still get caught by the tenant's mail going to your address and the tenant changing their address with government departments to your address (ATO, DTMR, electoral roll etc) so it's really not worth it.

 

What about a boarder?

 

Call them whatever you like, if they have exclusive possession of any part of the property you cannot claim the transfer duty concession. There is an exception for a spouse.

 

Wow.. This place is awesome! Thanks JDM. That's disappointing, but workable...

 

Aha. So s/he could Airbnb it.

 

Part of it. Then the ATO will ask q's. They access the AirBnb data and data match undeclared income.

 

I would interpret it differently but would depend on the specific facts of the matter.

1. Not Disposal
If the person in question shares the dwelling with you and it is a boarder type situation where they are occupying a room but sharing your fridge etc. So if it is a mate living with you and gives you cash for staying there then it is not a commercial arrangement. Your are not claiming deductions, declaring income etc. It is not in the furtherance of an enterprise. Also you would not be able to get done for trespass for entering their bedroom, you have granted exclusivity.

2. Disposal
You enter into a rooming accommodation agreement to rent out a room (or rooms). You declare income and claim costs.

Those are the 2 ends of the spectrum, something in between could go one way or another.

 

i remember reading somewhere its fine for someone to come live with you and contribute towards the expenses - might have been an ato thing though

End of the day they cannot expect 1 person to live in 2/3/4 bedroom properties

 

ATO view is that payments from a family member for board or lodging are considered to be domestic arrangements and are not rental income. In these situations, you also can't claim income tax deductions.

This poses concerns too for:
- Non family board / lodging arrangements. This may be income and deductions may be available. eg Putting up a room on AirBn, letting your house on Stayz etc
- Family members who pay "rent" especially where it is non-commercial or perhaps not even paid.