Increased stamp duty for developers and foreign investors

Developers and foreign investors will be paying an increased stamp duty surcharge on the acquisition of residential property, under the Duties Act 2001 (Qld), from 1 July 2018.

The rate of Additional Foreign Acquirer Duty (‘AFAD’) will increase from the current 3% to 7%, which will bring Queensland into line with the southern States including New South Wales, Victoria and South Australia.

AFAD residential land caught by increases

AFAD residential land is land in Queensland that is or will be used solely or primarily for residential purposes, where particular conditions are met.

AFAD residential land includes:

• homes and apartments (including chattels)
• vacant land on which a home or apartment will be built
  land for residential development, such as
  • smaller unit blocks
  • housing subdivisions
  • major developments with a residential component
• buildings refurbished, renovated or extended for residential use.
• Other types of residential property such as retirement villages and student accommodation will be considered on a case-by-case basis.

AFAD residential land does not include land used for hotels and motels.

Transitional arrangements have yet to be announced for contracts before 1 July 2018.

 

Disclaimer

This article was written by Margaret Miller, partner at Bell Legal Group. It is general in nature, is not legal advice and must not be relied on as such. If you need assistance relating to the topics discussed, please contact Margaret to obtain advice specific to your circumstances. Call 07 5597 3366 or send an email to mmiller@belllegal.com.au