QLD Gifting Property to Children?

[Denise0212]

My mother willed her property, in outer east Melbourne, to me and my 2 siblings when she passed in 2012. My Mum's defacto (Poppy) resides there, which was my mothers wish, and will continue to do so whilst independent. He is 77 and in reasonable health so I can't see him leaving us in the near future and have absolutely no desire to see that happen!!!

My children and I have been living in Brisbane since 1992 after my divorce. Children now 28 & 30, both living nearby in SE Qld. (Bris/Gold Coast). I have been working & renting since 1992 (not enough from marriage settlement to buy.) I was made redundant from my job in 2011 and been unable to find work and have struggled on Newstart to afford private rent with any stability and longevity, but I can't apply for public housing whilst I own 1/3 of Melb property. Siblings not prepared (and I'm also reluctant) to ask Poppy to contribute. Currently, the property would be lucky to be worth $300,000. I'm eligible for pension in Dec 2015.

Q. What costs would apply to transferring my 1/3 to my children (Stamp Duty?) (Gift Tax?) (Subsequent capital gains? - although I imagine the later would apply to 'whoever' owns it at time of sale.

Q. Would taking this step allow me to apply for public housing in Queensland? - Giving away my house may be 'frowned upon' even though I am providing a home for someone else in need?
In other words.... Is it worth it???!!!... Or just a path to more strife....

 

[Amanda E]

Hi Denise,
The buyer would still need to pay Victorian stamp duty - the transaction is charged with stamp duty based on the greater of the:

• market value of the property, or
• consideration (price paid) - including any GST.

See the State Revenue Office Victoria “Duties Overview” page.

If you’re selling purely to try to get QLD public housing, its likely that they’ll look at your financial history and transactions and your selling of the property and then applying for public housing may raise red flags. See the Qld Government page “Check your eligibility for housing” which sets out a number of eligibility criteria.

Also have a look at the “Waiting for housing - Housing register” page that sets out the levels of housing need, and even if you sell your part interest in the property, consider whether you’re truly someone with “very high need”, “high need”, “moderate need” or “lower need” for public housing. They will interview you once you apply for housing and get through all your information to determine your place on the housing waiting list. It may be several years.