A group of Queensland retirees are celebrating after taking on the state government on what they claimed was an "unfair" tax... and winning.
Aged in their 70s, 80s and 90s, the retirees are mostly British expats who hold 410 and 405 Retirement Visas.
The small group of retirees (around 1000) are totally self-funded and are not eligible for any Australian or Queensland benefits such as Medicare or pensions. Most own their own homes, contribute financially and socially to their communities and plan to live in the state for the rest of their lives.
Some wanted to downsize to smaller senior-friendly housing, while using left over money to help fund their retirement. However, they found themselves caught by a tax clause which meant they not only had to pay stamp duty but also a 7 per cent Additional Foreign Acquirer Duty on the value of their new house.
The foreign acquirer duty was introduced by Queensland and several other states, to curb the purchase of properties by speculating overseas investors and applies to non-Australian citizens or permanent residents who buy a property in Queensland.
A campaign by the Queensland branch of British Expat Retirees in Australia appeared to be going nowhere, but now members have heard they will be exempted from the tax from January 1, 2023.
A delighted BERIA Queensland group co-ordinator Vic Jakes said it was wonderful news and would make a big difference to those expats wanting to downsize.
Mr Jakes believes the Queensland government was possibly swayed by the story of an elderly Bundaberg couple, aged 78 and 85, who needed to downsize for financial and health reasons but were unable to do so because of AFAD.
Government budget papers estimate the exemption will cost the state around $300,000 a year.
Expat retirees in NSW were exempted from a similar tax in 2019.
- READ MORE: Expats' bureaucratic nightmare
- READ MORE: Unfair tax penalises elderly expats wanting to downsize