Last week the Queensland Government announced significant changes to the First Home Owners Grant (FHOG).
The FHOG of $7,000 is still available for first home buyers purchasing established homes if the contract is entered into before 11 October 2012.
However, the First Home Owners Grant is being replaced by the First Home Owner Construction Grant (FHOCG). The positive is that the FHOCG totals $15,000 which is a significant increase from the previous amount of $7,000. The new grant applies to all contracts signed on or after 12 September 2012.
To be eligible for the FHOCG you must:
- Purchase a new home (not previously occupied);
- Contract to build a new home; or
- Construct a new home as owner builder.
The eligibility requirements of the FHOCG are similar to the previous scheme, including:
- The property must become your principal place of residence within one year of taking ownership;
- The property must be your principal place of residence for at least six months;
- The property must be bought or built at a value under $750,000.
As a result of the new State Budget there have also been some changes to Stamp Duty, notably:
- the government has increased the marginal rate of transfer duty payable on property worth over $1 million from 5.25% to 5.75%;
- OSR will be undertaking increased compliance activity.
There have also been some changes to Stamp Duty as a result of The Civil Partnerships and Other Amendments Bill 2012 which received Royal Assent on 27 June 2012. Existing civil partnerships are now considered to be registered relationships, and civil partners are now referred to as registered partners.
The changes are reflected in these Acts:
- Duties Act 2001
- Land Tax Act 2010
- Payroll Tax Act 1971
- First Home Owner Grant Act 2000
The definition of ‘spouse’ in the Duties Act now includes a ‘registered partner’.
Other budget measures include:
- Payroll tax threshold has increased from $1 million in 2011-12 to $1.1 million in 2012-2013 and increasing by $100,000 each year until it reaches $1.6 million on 1 July 2017;
- An increase in DNR lodgement fees by $15 for title dealings that attract the standard or a higher fee.
For further information on these or other legal issues please contact our Toowoomba Family lawyers team today:
Justin Shine
Conveyancing Manager
Telephone: 07 4616 9898
Melinda Stead
Conveyancing Manager
Telephone: 07 4616 9898
