It Depends – Is there duty payable when I transfer my home to my spouse?

In this edition of ‘It depends’, lawyer Sacha Robinson talks about whether there is duty payable when you transfer an interest in your home to your spouse.

VIDEO TRANSCRIPT

Welcome to today’s edition of It Depends. Today, we will consider whether there is duty payable when you transfer an interest in your home to your spouse.

Is there duty payable when I transfer my home to my spouse?

It depends. In Queensland, the general position when you are transferring dutiable property such as land is that duty is payable unless an exemption applies. There is an exemption if you are transferring your home to your spouse. However, there are certain criteria which must be met for the exemption to apply.

When does the exemption apply?

The following criteria must be met for the duty exemption to apply. Firstly, the transfer must be by way of gift. Your spouse cannot provide any consideration for the transfer. Secondly, after the transfer, you and your spouse must hold the property as tenants in common in equal shares or as joint tenants. Finally, the home must be your principal place of residence.

Other issues to consider

Whether transferring your home to your spouse is the right decision for you depends entirely on your individual circumstances. For example, some issues to consider include the effect of the transfer on your spouse’s land tax liability and also how the transfer ties into your estate planning or asset protection strategies.

Please contact me or a member of our team if you have any further questions about transferring your home to your spouse.