Transfer Duty Exemptions for Home and Property Owners

One of the greatest assets you may ever have is your home. There are a variety of circumstances where you may acquire a place of residence with full or part ownership. In Queensland, a transfer duty applies when you acquire such an asset. However, there is a grey area as to when you may not need to pay this duty.

The complicated part is, you have to claim if you believe you are an exemption. These claims can be long and tedious if you don’t know what your rights are. This article will give you a bit more information on Transfer Duty and understanding if you an exemption to the rule.

What is Transfer Duty?

Transfer duty is a tax paid on transactions that are dutiable (e.g. transactions where a duty is applied) when buying, selling or transferring property rights and/or land. In these instances, both parties are liable to pay the duty however, usually the purchaser pays. Transfer Duty apply to transactions that include mortgages, business assets, undeveloped land, resource authorities and existing rights. Other examples of when Transfer duty may need to be paid include:

  • Agreements for a transfer of property
  • An Acquisition of partnership
  • Creating or terminating a trust of dutiable property
  • A surrender or trust acquisition 

What are the Exemptions?

There are a few exemptions to paying transfer duty in Queensland which are clearly outlined. These guidelines make it clear the circumstances and situations when you can claim for an exemption.

  1. Transfer of an interest in your home to your spouse

When you transfer percentage of the property ownership to your spouse that will be living on the residence. This includes if you purchase the home as a gift for your spouse which you will use as your primary residence with joint ownership.

  1. Change of tenure between joint tenants and tenants in common

You don’t pay the transfer duty if the change from the joint tenants to the tenant in common and the value of each parties’ property share doesn’t change. 

  1. Manufactured home

A manufactured home is a house that is designed to be moved around and not physically attached to land. You don’t pay transfer duty on these homes if it is residing on a site under a agreement, not on a site but has been bought with the intent to put it on one under a site agreement and doesn’t involve transferring of land ownership.  

How can I apply?

For each exemption, there are a variety of statements and declarations you need to read and be aware of to ensure the process is completed correctly. Forms need to be completed and properly submitted to ensure that all details and criteria are filled. The Land Title Practice Manual can assist you in filling in forms such as the Title Registry Form.

Still not sure if you are eligible? Worried about not meeting the criteria or completing the right forms? Speak with our team at GLG Legal who are experienced in Commercial & Property Law, to review your unique situation.