A Guide to Stamp Duty Valuations for Queensland Property Owners and Buyers
In Queensland Stamp Duty (now known as ‘Transfer Duty’) can be a confusing topic for people who aren’t making regular property transactions. It’s a payment that the State Government levies on property transfers between people, or people and companies or trusts. There are a few different situations we see that require independent valuations.
Here is a quick guide to Stamp Duty valuations or, as they are called now Transfer Duty valuations.
NOTE: As part of the state COVID economic recovery plan it was announced that ‘small business owners who restructure by transferring assets from a sole trader or partnership into a company structure may soon be eligible for a duty exemption on the transfer.‘ More info via the link.
When is Stamp Duty payable?
Stamp Duty in Qld becomes payable whenever ownership or control of a property changes hands. This can include;
- Buying or selling a property using a contract of sale
- Gifting a share of a property to a spouse or child
- Creating a trust over a property controlled by someone other than the initial owners (for example, creating a trust over a family farm which can be controlled by children who don’t own the property)
- Allowing access to your property using formal agreement known as an easement
It is liable at the time of the transfer.
How much is Stamp Duty in Qld?
Queensland Stamp Duty, which is now called Transfer Duty, is levied on the higher of the market value or the actual charged value and does not take into account any loans or encumbrances over the property. This means that if you transfer property to a friend or family member at a free or reduced rate, the Stamp Duty is calculated on the market value rather than the value that the new owner paid.
Payments are based on a sliding scale depending on house valuations. The government website includes a guide to transfer duty rates and stamp duty calculator you can use to estimate how much Stamp Duty is owed but below you will find an example:
Stamp Duty Calculation Example (Queensland)
Mary and Jo decide to gift their daughter a half share of their property which is their primary residence. They call to arrange a property valuation for Stamp Duty and our valuer arranges a time to visit and appraise the property. The house valuation comes in at $500k therefore in this example:
Purchase Price: $500,000
Transfer Duty Payable (Stamp Duty): $8750.00
Note that this is general advice only for the purposes of explaining stamp duty valuations in Queensland which are now called transfer duty valuations.
Can I reduce the amount owed?
There are several concessions and exemptions that you may be eligible for including a First Home Buyers concession and a Family Business concession, and exemptions on the death of an owner or for charities.
When is a valuation necessary?
If the market value of the property is not clear, for example if the property market is rapidly changing in your area, it may be necessary to get a formal valuation.
A valuation is not always required to assess the amount of transfer duty (stamp duty) payable on a property transaction. A property valuation is usually required when the property is being transferred without any matching payment, as the underlying value of the property is unclear. The Commissioner may also require a revaluation if they do not agree with a lodged value, for example if the stated property valuation falls dramatically above or below the assessment for similar properties in the area.
How much is stamp duty in Qld? Your professional valuer can answer any general questions you may have.
CSA Valuers are professional property valuation experts located in Brisbane, Queensland.
Peace of mind comes from expert advice.
CSA Valuers are certified practising valuers in Queensland. For an expert valuation on your property or to chat about your property please get in touch.