By Dane Lang
The Queensland Government has recently closed a loophole in the Duties Act that will result in owners of residential units in retirement villages being able to claim the stamp duty concession available to homeowners.
Provided that a purchaser of residential property intends to use the property as their principal residence, the purchaser is entitled to a stamp duty concession. However, if within one year the property is sold or leased to a third party, the stamp duty concession must be repaid, either in full or in part.
Many retirement villages are structured as lease and sub-lease occupancy arrangements, whereby residents purchase units in the village and then lease the unit back to the village operator. Residents occupy the units by way of a sub-lease from the operator to the resident.
Stamp duty concessions now available for residential units in retirement villages Proudly supporting the local community. The Queensland Government has recently closed a loophole in the Duties Act that will result owners of residential units in retirement villages being able to claim the stamp duty concession
available to homeowners.
“The changes will be backdated to July 26, 2002”
The effect of these arrangements was that the homeowner stamp duty concession was lost because the property has been the subject of a lease.
The Queensland Government has however amended the Duties Act so that these arrangements do not preclude purchasers of residential units in retirement villages being able to claim the home owner stamp duty concession. The changes will be backdated to July 26, 2002 and any purchasers of retirement village units since this date may be able to claim a reassessment of stamp duty paid on the purchase.
