The Queensland Government’s 2011/2012 Budget announcement on 14 June 2011 has brought about some significant changes to the State’s duty regime and introduced the Building Boost Grant.
In a bid to stimulate the local building industry, the Queensland Government is currently offering a $10,000.00 grant known as the “Building Boost” to help buyers build new homes in Queensland from 1 August 2011 to 31 January 2012.
It is hoped that this Grant will assist Queensland property developers to increase sales of their off-theplan developments.
However the Queensland Government simultaneously announced the abolition of the Home Concession as of 1 August 2011, which means that transfer duty for non-first home buyers has increased up to $7,175.00.
Whilst the Building Boost may provide short-term assistance to developers, the long term effects of the transfer duty changes will be a further blow to the Queensland housing market.
To provide assistance to developers, a snapshot of the eligibility requirements for the Building Boost Grant is provided below:
Who is eligible for the Grant?
Australian citizens and/or Australia permanent residents who are 18 years or over, or a substantially owned corporation or trust (superannuation funds may also apply).
Unfortunately the Grant is not payable for a building contract, or to an owner builder if you carry on the business of building homes.
How long is the Building Boost Grant available for?
The Grant applies to contracts entered into between 1 August 2011 and 31 January 2011. The contract for the purchase of a new home must be entered into between those dates.
What is a new home?
The Government has provided the following definition: A new home is a home that:
- has not been previously occupied or sold as a place of residence; or
- is a substantially renovated home.
What’s the value limit?
The home and land value must be less than $600,000.00.
The above is only a snapshot of the requirements. Please be aware that there are construction time limits and occupancy requirements in order to be eligible for the Boost.
The Budget announcement also confirmed delays to the previously announced abolition of transfer duty on business assets by one year to 1 July 2013. This makes Queensland the last state to abolish this category of duty.