The Queensland State Budget

In the recent State budget the Queensland Government announced a “New Home Buyers Grant Boost” of $10,000 for the purchase of a new (i.e. newly built, not previously occupied) property or a contract to build a new property, entered into between 1st August 2011 and 31st January 2012 (for purchases under $600,000).

Please refer to the link below to the Qld Govt Budget site for full details:

http://www.budget.qld.gov.au/current-budget/tax-reform/index.shtml

This is a positive move and is designed to help the building industry.  It is a good opportunity for people considering investing in or building a new property, to gain a little benefit from the state government.

However, a word of warning.  Also announced within the budget are some considerable changes to Stamp Duty rules.  These changes can add considerable cost when buying a new and existing property.   In reality a portion of the bonus announced above will be needed to cover the increased stamp duty costs however for smaller new home purchases there will be a little left over.  But for larger new properties or existing properties expect the increased stamp duty costs to far out-way the bonus offer by the Government (if applicable).

Please refer to the website for details regarding the finer detail and construction times, other eligibility requirements etc. The grant can be obtained for each new home purchased or built where the grant conditions are met and mmultiple claims for the grant may be made.

Also, the normal FHOG (First Home Owners Grant) entitlement is still available in addition to the boost.

Please be aware: Contracts or options entered into outside of the timeframe of 1st Aug to 31st Jan will not be eligible. The extract below is from the Govt link under Frequently Asked Questions:

“Do replacement contracts and options qualify?

No.  The grant applies to contracts to purchase or build a new home entered into on or after 1 August 2011.  Contracts made before that date are ineligible.  If a contract made before that date is cancelled and a replacement contract for the home is executed on or after 1 August 2011, the replacement contract will not be eligible for the grant.

Also, if an option to enter into a contract to purchase or build a new home is granted before 1 August 2011 and exercised on or after that date, the contract will not be eligible for the grant.”