Transfer duty should be factored in when purchasing a residential property as it is payable on all residential property transactions. Duty applies to principal places of residence (i.e. owner-occupied homes), rental homes, holiday homes and land on which a residence is constructed within five years of purchase.
First Home Owner Rate of Duty
When a home buyer is eligible for the First Home Owner Grant
, a concessional rate of transfer duty will apply if the value of the dutiable property is below certain thresholds.
As at 3 July 2014 the First Home Owner Rate of Duty applies to a dutiable transaction with a dutiable value of up to $530,000 for a house and land, or $400,000 for vacant land.