The Real Estate changes in the QLD Budget that you need to know about

The 2018 Queensland Government Budget has been delivered, and if you’re buying, selling or a current owner, here’s what you need to know:

Buyers: First Home Owner’s Grant Extension
The First Home Owner’s Grant has had a 12-month extension along with a $5,000 reduction, down to $15,000 from the 1st of July 2018. It’s important to note that contracts entered into before the 30th of June 2018 may still be eligible for the $20,000 First Home Owners Grant, but the eligibility requirements will remain unchanged. 

Buyers: GST rules for new property buyers
New residential property buyers will need to be aware of the change in GST rules in place from the 1st of July 2018 that sees them responsible for the GST payment. 

Buyers of new residential property will now be responsible for paying the GST amount to the Australian Tax Office themselves, on or before settlement, instead of by the developer.

The change sees no additional cost to buyers but will mean additional steps in the settlement process for the buyers, including separate the GST from the purchase price and submitting forms to the ATO.  The changes are aimed at reducing tax evasion in the property development sector by dealing with the minority who weren’t do the right thing. 

Additional Foreign Acquirer Duty increase
Additional Foreign Acquirer Duty for will increase from 3% to 7% from the 1st of July, and must be paid by foreign individuals, corporations and trusts in addition to ordinary transfer duty.

Land Tax Increase
The Government has announced an increase in Queensland Land Tax from the 1st of July 2018 for property owners with holdings of $10 million or more. The new land tax category will increase their rate by an additional 0.5%, at a rate of 2.25% for individuals and 2.5% for trusts, companies or absentee landholders.

Photo credit: AAP Image/ Dan Peled