Published on July 18th, 2012
LNP reinstates PPR duty exemption, stimulates property market
Recent changes to government legislation concerning stamp duty will have a profound effect on regional and residential property markets, according to Elders state franchise manager Vikki Seekamp.
Buyers are often unaware of the many tax exemptions that can apply to land used for a home or primary residence.
But they will be pleased to know that many initiatives to make it easier for people to invest that were either rolled back or reduced under the Bligh government have been reinstated by the current LNP.
Among them is the principal place of residence (PPR) duty exemption, which came into effect for the second time on July 1, after the original PPR was abolished in August 2011.
"In layman terms, the decision to reinstate the PPR exemption means that buyers will see a reduction in overall stamp duty fees," explained Ms Seekamp.
Anyone looking to buy a house for $300,000 under the former property laws that were still in effect earlier this year would have paid $8,325 in duties – a figure that drops by $5,000 with the revised PPR exemption.
And while it is still unclear whether the new exemption will follow the same framework as its predecessor, Ms Seekamp is confident it will have a positive impact on the way people buy and sell property across the sunshine state.
"It can apply to any sort of dwelling as long as you move in within the first 12 months after purchase," she said. "You could even move in the 11th month, so long as you stay there for 12 months afterwards."
Homebuyers who wish to apply for the exemption will also need to make sure that they do not dispose of the property within the 12-month period, while existing tenants will need to vacate the premise within the first six months of settlement.