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Selling Costs - First Home Owner (Breaking Contract)

Discussion in 'The Buying & Selling Process' started by Sachi, 25th Jan, 2016.

  1. Sachi

    Sachi Member

    Joined:
    4th Jan, 2016
    Posts:
    17
    Location:
    Brisbane
    Hello there,

    I wish to sell my current vacant block of land which was purchased last year (in June at a cost of 205,000). I intended to build my first home here, but now due to the soil type and other considerations it does not seem to be a good idea. I received a stamp duty concession in QLD for first home vacant land concession. Would would you please be able to advise that if I sell the lot now, what sort of penalties, taxes I am looking at ? Also, if I purchase another lot shortly after will I get stamp duty concession again, given that I would have to forfeit my initial concession and might have to pay penalty on it. Will it affect my First home Owners great start concession in future ? Thanks a ton guys.
     
  2. monalisa

    monalisa Well-Known Member Premium Member

    Joined:
    18th Jun, 2015
    Posts:
    314
    Location:
    Sydney
    Hi @Sachi

    Have you checked with the Office of State Revenue in QLD?

    Back when we used to have FHOG and stamp duty exemptions, I believe it used to be still valid if you returned the funds to the OSR, and paid the duty. Not sure re penalties though. Perhaps they charge interest on it.
     
    Last edited: 26th Jan, 2016
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  3. Sachi

    Sachi Member

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    4th Jan, 2016
    Posts:
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    Location:
    Brisbane
    Thanks a lot Monalisa, much appreciated :)
     
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  4. JDM

    JDM Well-Known Member

    Joined:
    19th Jan, 2016
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    Location:
    London (ex Brisbane)
    You must notify the OSR within 28 days of becoming ineligible for the first home vacant land concession using the following form: Form OSR D2.4—Notice for reassessment—transfer duty home and vacant land concessions - Publications | Queensland Government. You must also provide the OSR with the original stamped documents. OSR will make a reassesment and advise of the amount you must pay (duty you would have paid without the concession, maybe UTI (currently 10.15%) as well depending on who you get at OSR).

    Owning vacant land should not disqualify you from obtaining the Great Start Grant, however you should check this with the Government directly. I have seen them interpret the legislation in unexpected ways to avoid payment previously. Fortunately we were able to make submissions and have them change their decision in that case.
     
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  5. Sachi

    Sachi Member

    Joined:
    4th Jan, 2016
    Posts:
    17
    Location:
    Brisbane
    Thanks a lot JDM. Much appreciated.