Claiming a First Home or Home Concession When Purchasing a Tenanted Property
A Buyer seeking to claim the home and first home stamp/transfer duty concessions in Queensland should be aware of their obligations with respect to any existing tenancy and how this may impact their eligibility to claim the concession.
What is the Stamp/Transfer Duty First Home or Home Concession?
The home and first home concessions are a discount on stamp/transfer duty available to Buyers who meet the eligibility criteria. Buyers seeking to claim the concession must complete an OSR Form D2.1.
Buyer Occupancy Obligations When Claiming the Concession
A Buyer who claims the concession must comply with the following:
- not grant exclusive possession of the property in any capacity including selling, transferring, or leasing the property prior to moving in or within one year of moving in;
- not lease the property or grant extension to existing leases;
- if the property is occupied, the current occupants must vacate the property within the first 6 months following settlement; and
- the Buyer must move in within the first 12 months from settlement.
What to do if Circumstances Change?
A Buyer who receives the stamp/transfer duty concession and later fails to comply with their obligations must notify the Office of State Revenue within 28 days by lodging an OSR Form D2.4. Depending on the nature of the breach the Buyer may be required to pay back the full or partial amount of the stamp/transfer duty concession. A Buyer may also be liable to pay penalty interest on the unpaid amount.
It is recommended that a Buyer who is unsure of their ability to comply with the above obligations pay the full amount of stamp/transfer duty. Should it result that the Buyer is able to comply they may be eligible to claim a refund on the stamp/transfer duty for the amount of the concession after the date of the transfer.
Buyers should also be aware that the Office of State Revenue conduct periodic audits to check whether concession claimed by buyers are genuine.
Property Law is a broad area, encompassing: conveyancing, development, and commercial leases. Salerno Law has experienced lawyers dedicated to each of these fields. Mistakes in property law can be financially devastating, which is why expert assistance is vital.
By Aspen Roggeveen