Legal Update - Additional Foreign Acquirer Duty to increase in QLD

Author: TML Admin

Additional Foreign Acquirer Duty to increase in QLD

The Queensland Government has recently announced in the 2018/19 State Budget that as of 1 July 2018, Additional Foreign Acquirer Duty (AFAD) in Queensland will increase from 3% to 7%. Relevant transactions entered into from 1 July 2018 onwards will be subject to AFAD at the increased rate.


What are the implications for you?

If you are a foreign person purchasing residential land in Queensland, you may be significantly affected by these changes as you may be liable to pay the normal transfer duty in relation to the transaction plus AFAD equal to 7% of the dutiable value of the residential land being purchased.


You may still apply for transfer duty concessions such as first home, first home vacant land and home owner concessions, however the concession will apply only in relation to the normal transfer duty payable and AFAD payable will be based on the dutiable value of the residential land.


Example

A foreign person signs a contract to buy a house with a dutiable value of $1,000,000. The house is being purchased as an investment property, so the purchaser will not qualify for a home concession.

The normal transfer duty payable will be $38,025.00

Since the individual is a foreign person and liable for AFAD, the AFAD payable will be calculated as follows:

$1,000,000 × 7% = $70,000.00

The total amount of duty payable is $108,025.00 ($38,025 + $70,000).


For more information

Please read our previous article on AFAD by clicking here.

Contact Tom Harley on 07 5443 1566 or email mail@tml.com.au

Comments
Post has no comments.
Post a Comment




Captcha Image

Trackback Link
http://www.tml.com.au/BlogRetrieve.aspx?BlogID=5226&PostID=731514&A=Trackback
Trackbacks
Post has no trackbacks.