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Stamp Duty and Queensland Properties

Discussion in 'Accounting, Tax & Legal' started by mack, 27th Aug, 2005.

  1. mack

    mack Member

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    23rd Aug, 2005
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    Location:
    Kambah, ACT
    Last financial year I refinanced to access the equity in a property I purchased in 2001. I was charged $650 stamp duty.

    My accountant said I should not have paid this and my solicitor does not agree.

    Who is correct? Can anyone enlighten me?
    Mack
     
  2. Nigel Ward

    Nigel Ward Team InvestEd

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    10th Jun, 2005
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    Mack

    It may have been an "upstamping" to increase the amount of stamp duty paid on your mortgage to match the new amount borrowed?

    How much extra did you draw and what was your previous loan amount?
     
  3. coops

    coops Member

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    Location:
    Brisbane, Qld
    Hi Mack

    Any time we have refinanced a property with the same bank (in Qld) we have had to pay stamp duty on the increased loan amount only.
     
  4. mack

    mack Member

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    Location:
    Kambah, ACT
    Hi Coops and Nigel

    Thanks for your help
    I refinanced with another lender The original was 155K and I increased it to 162.5K
    7.5K difference and the Stamp Duty was $650.
    8.7% of the difference. Is this correct do you think?
    Mack
     
  5. Mark Laszczuk

    Mark Laszczuk Well-Known Member

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    Brisbane
    Hi guys,

    Not really related to your specific query mack, but I was reading Noel Whittaker's column in the paper today (bit of light reading on a Sunday) and there was a mortgage related article in there where he stated that mortgage lenders are offering more 'extras' on their mortgages to get more people to purchase their loans.

    He stated that this puts the advantage in the mortgagee's hand as they can more aggressively bargain with the lender to get a better deal. Dunno if it's too late for you or not but you might wanna approach the lender and play a bit of hard ball? That is, if it's possible to bargain on stamp duty?

    Brokers - is this possible in today's lending market?

    Mark
     
  6. ani

    ani Member

    Joined:
    11th Aug, 2005
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    20

    Hi Mack

    There is a refinance calculator here
    http://www.osr.qld.gov.au/calculators/calculators.html#

    As Nigel says you will be liable for stamp duty on the extra mortgage amount.

    ani
     
  7. mack

    mack Member

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    Location:
    Kambah, ACT
    As a matter of fact Mark,
    Westpac did refund Stamp Duty for me a few years ago but I was under the impression that they were wrong and reimbursing me for their mistake.
    I need to know what the QLD government has in place? ani's website looks promising.
    Thanks for sharing your comments
    Mack
     
  8. mack

    mack Member

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    Location:
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  9. Mark Laszczuk

    Mark Laszczuk Well-Known Member

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    Mack,

    I know a very good broker up here in Brissy. I will ask him tomorrow and get back to you.

    Mark
     
  10. intelli

    intelli New Member

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    18th Aug, 2005
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    Location:
    Brisbane
    Hi Mack,

    I'm Darin from intellichoice, the situation with the stamp duty is you have been charged this twice as you need to request a stamp duty concession via the lender during the refinance process-some lenders do and some lenders don't, you obviously experienced the second, in which case both you accountant and solicitor are correct.
    If you would like to discuss you can contact me via private email.

    Cheers
     
  11. Mark Leo

    Mark Leo Well-Known Member

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    Stamp duty on refinancing/drawing on equity

    G'day intelli,
    I'n one of your posts you said that 'you need to request a stamp duty concession via the lender during the refinance process-some lenders do and some lenders don't'.

    Can you expand on this a little for me as I'm about to go through another round of refinancing/drawing down equity with the NAB. I've previously paid stamp duty on the extra amount that I've borrowed, but am v'interested in ways of reducing/avoiding this. ;)

    Regards,
    Mark Leo
     
  12. Rolf Latham

    Rolf Latham Well-Known Member

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    Location:
    Gold Coast and Sydney
    Hiya

    Key is "refinanced to another lender".

    That means a new mortgage has been taken and unless the property is a PPOR, new stamps will usually have to be paid.

    650 also seems in the ballpark because its around 4 per 1000.


    ta

    rolf
     
  13. intelli

    intelli New Member

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    HI Mark,

    Unfortunately no getting around paying the government their dues.

    Cheers

    Intelli
     
  14. Rodge

    Rodge Member

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    2nd Sep, 2005
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    I just refinanced through same lender to tap into equity, paid no additional stamp duty, I assume this is OK, or will they slug me at end of financial year?
     
  15. Rolf Latham

    Rolf Latham Well-Known Member

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    Location:
    Gold Coast and Sydney
    Hi Rodge

    Either the property is on Victoria, or its your lucky day, for now..........

    They will usually pick that sort of thing up in an audit and get you to cough months and often years later

    ta

    rolf
     
  16. intelli

    intelli New Member

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    Location:
    Brisbane
    Hi Rodge,
    Would need to know a little more about the status of your current loans, eg were any of them ahead in regards to redraw, or was it cross-collateralized with some other property/properties?