Brighter And some

Will Queensland dump pricey stamp duty?

by Kate Watt, Marketing Manager 9 March 2021

Stamp duty is perhaps the most hated tax for Aussie home buyers, often adding thousands to the cost of your transaction.

Thankfully there are some concessions – which may mean you pay no stamp duty when buying your first home. But many buyers would simply prefer to ditch the tax altogether.

So if death and taxes are the only certainties in life, what are the chances of the Queensland Government dumping stamp duty?

This is a question under debate in New South Wales which is considering tax reform that would abolish stamp duty and replace it with a smaller annual tax. But it’s a polarising topic, Nine News reported last month.

Back home, the Real Estate Institute of Queensland is clearly in favour of abolishing the tax which it sees is a barrier to home ownership.

“Clearly the abolition of stamp duty – universally acknowledged as the most harmful tax within Australia – must be front and centre of any meaningful tax reform effort at this moment when it’s most needed,” Ms Mercorella said last late year, reports Savings.com.au.

So will Queensland follow NSW and seek to scrap the tax? It’s not looking likely.

When the government handed down its state budget in December last year, stamp duty was not on the drawing board.

So what does it mean for your buying plans? The key is to know if stamp duty applies to you and budget for it.

If you are eligible to claim a first home concession you’ll pay no stamp duty – or transfer duty as it’s also called – on homes under $500,000.

Check out the transfer duty estimator and also talk to your bank or get some independent financial advice to make sure you factor this into your home buying budget.

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