QLD Stamp Duty First Home Concession

Hi,

Hoping to get some advice on my scenario.

I’ve purchased my first property which is due to settle in 2 weeks. As part of the sale, I agreed the vendor could stay on in the property for up to a max of 6 months and that we would sign a lease agreement.

My concern now is that I don’t know if I am still eligible for the stamp duty concession which is saving me $10k!

would welcome anyones thoughts on this or ways in which I can do this but still be eligible for the concession.

thanks

 

A question your solicitor/conveyancer would be able to answer.

Assuming this is for a QLD purchase? If so then, yes you're still eligible - you just have to move in within the first 12 months.
It states the below on the Government website
To be eligible for a first home concession when you buy or acquire a home, you must:

• have never claimed the first home vacant land concession
• have never held an interest in another residence anywhere in Australia or overseas
• be at least 18 years of age (we explain below when we may waive this requirement)
• move into it with your personal belongings and live there on a daily basis within 1 year of settlement (this time cannot be extended)
• not dispose (sell, transfer, lease or otherwise grant exclusive possession) of all or part of the property before you move in
• be paying market value if the residence is valued between $500,001 and $549,999.

Existing tenants or previous owners
Any existing tenants must move out when their lease expires or within 6 months of settlement, whichever is the earlier, for you to stay eligible for the concession. Previous owners who continue to stay in the property must also move out within 6 months.

Link to website - First home concession

 

Thanks Lindsay,

Yes it’s in Qld. It is the ‘dispose’ eligibility that I am concerned about as this includes leasing.

I’m not sure if I enter a lease agreement with the owner that this will make me ineligible?

 

I've financed many first home buyers where they had tenants in there for the first 6 months before moving in, never had an issue but I see your concern is valid as you might be getting them to sign the lease after settlement by the sounds of it?
IF you're still unsure, ask your solicitor/conveyancer to confirm for your peace of mind.


From the Gov website below

Disposal and its effect on your concession

If you claimed a transfer duty concession for homes and wish to keep the concession in full, you can’t dispose of part or all of the property before moving in or within 12 months of when you first occupy it. For transfer duty purposes, ‘dispose’ means lease, sell, transfer or otherwise grant another person exclusive possession to the property or part of it.

If you dispose of your property after moving in, you will lose the benefit of the concession from that time, even if you continue to live in the property or move back in.

Here are some common examples of when you could dispose without realising:

• You grant a lease extension to an existing tenant before moving in.
• You lease out a room within 12 months of moving in.
• You sell or transfer part of your interest in the property within 12 months of moving in.
• Within a few months of moving in, you lease out your home (or part of your home) using an online accommodation sharing platform (e.g. Airbnb, Booking.com, Stayz).
• An existing tenant continues to live in the home after their lease expires or for more than 6 months after settlement, whichever comes earlier.
• A previous owner does not move out within 6 months.

@Cindy5867 - Best check with your soli/conveyancer regarding the lease date/timing and confirm you'll be OK.

 

Thanks! It’s not an existing lease, it will be a new lease agreement WEF from settlement.

 

With Effect From

 

Here is the relevant legislation + surrounding sections
\
DUTIES ACT 2001 - SECT 86 What is a home and a first home

 

It might. I can see the danger. What does your lawyer say?