See the below information update from the QLS regarding the reintroduction of the Principal Place of Residence Concession.
The LNP Government has announced that it will be honouring its election commitment and reviving the principal place of residence (PPR) duty exemption from 1 July 2012. The original PPR exemption was abolished for contracts formed from 1 August 2011.
The Society expects legislation to reinstate the duty exemption to be introduced into Parliament during the first sitting commencing 15 May 2012.
It is not presently certain whether the new PPR exemption will operate identically to the previous exemption and QLS will keep members informed.
Should a Buyer wait or still buy in the interim?
To allow you to compare apples to apples, if we are to assume that the PPR rate will be reintroduced at the rate of 1% on the first $350,000 of Purchase Price then the difference in duty payable on the purchases prices listed below will be as follows:
|Purchase Price||Duty if Principal Place of Residence claimed||Duty if not Principal Place of Residence||Difference in Duty|
The unknowns are:
Ø the PPR rate may not be introduced at the same rate (i.e 1% on the first $350,000).
Ø The LNP have previously flagged that the budget may not be delivered until September 2012 – so there is a chance that the concession may not be reinstated officially until September.
Obviously Sellers will still wish to sell and Buyers buy property prior to 1 July 2012. The likely difference in concession may be useful information for you as Agents and the Sellers to be aware of when negotiating sale prices.