Published Monday, 30 July, 2007 at 11:57 AM
Deputy Premier, Treasurer and Minister for Infrastructure
The Honourable Anna Bligh
Sunshine Coast local wins law change
July 30, 2007
The State Government will change the conditions of the transfer duty home concession to ensure retirement villages residents who own freehold title to their units but are required to sign lease arrangements with village operators will not be disadvantaged, Deputy Premier and Treasurer Anna Bligh said today.
Ms Bligh said the change covered the situation where retirement villages require a lease-back of the resident’s freehold unit to the operator and then a sub-lease back to the resident. The arrangements are a legal procedure that allow villages to set by-laws on the properties.
She said the case of Sunshine Coast retiree Sheila Reader had brought the case to her attention. On solicitor’s advice, Ms Reader had paid the full amount of transfer duty, only to find her neighbours had claimed the concession, meaning they had paid about $6000 less. Ms Reader had unsuccessfully appealed against the decision before her case came to Ms Bligh’s attention.
“The solicitor’s advice was quite proper but Ms Reader’s case brought to my attention what is clearly an inequity that potentially affects many other people in the same boat,” Ms Bligh said.
“There was ambiguity in the law that allowed solicitors to interpret it in a number of ways.
“It’s a victory for Sheila – and there will be a lot of other people happy that she stuck to her guns. I thank Sheila for bringing the case to my attention and for having the determination to see it through.
“It just goes to show that if you have a good case, you should stick with it
“It was always the Government’s intention that if a person occupying their unit as their principal place of residence meets all the usual conditions of the concession, they will be able to claim it.
“Residents in these cases should not be financially disadvantaged simply because arrangements of the retirement village operator over which they have little control.”
Ms Bligh said the difference in duty payments on an average retirement village property was about $4000 but it varied according to purchase price.
The change will be retrospective for five years from last week.
Retirement village residents who became liable for transfer duty at the higher rate within that time may be entitled to a partial refund of the duty and should contact their professional adviser or the Office of State Revenue on 3235 4463.
More information: Deputy Premier’s Office 3224 6900
The State Government will change the conditions of the transfer duty home concession to ensure retirement villages residents who own freehold title to their units but are required to sign lease arrangements with village operators will not be disadvantaged, Deputy Premier and Treasurer Anna Bligh said today.
Ms Bligh said the change covered the situation where retirement villages require a lease-back of the resident’s freehold unit to the operator and then a sub-lease back to the resident. The arrangements are a legal procedure that allow villages to set by-laws on the properties.
She said the case of Sunshine Coast retiree Sheila Reader had brought the case to her attention. On solicitor’s advice, Ms Reader had paid the full amount of transfer duty, only to find her neighbours had claimed the concession, meaning they had paid about $6000 less. Ms Reader had unsuccessfully appealed against the decision before her case came to Ms Bligh’s attention.
“The solicitor’s advice was quite proper but Ms Reader’s case brought to my attention what is clearly an inequity that potentially affects many other people in the same boat,” Ms Bligh said.
“There was ambiguity in the law that allowed solicitors to interpret it in a number of ways.
“It’s a victory for Sheila – and there will be a lot of other people happy that she stuck to her guns. I thank Sheila for bringing the case to my attention and for having the determination to see it through.
“It just goes to show that if you have a good case, you should stick with it
“It was always the Government’s intention that if a person occupying their unit as their principal place of residence meets all the usual conditions of the concession, they will be able to claim it.
“Residents in these cases should not be financially disadvantaged simply because arrangements of the retirement village operator over which they have little control.”
Ms Bligh said the difference in duty payments on an average retirement village property was about $4000 but it varied according to purchase price.
The change will be retrospective for five years from last week.
Retirement village residents who became liable for transfer duty at the higher rate within that time may be entitled to a partial refund of the duty and should contact their professional adviser or the Office of State Revenue on 3235 4463.
More information: Deputy Premier’s Office 3224 6900