The new transfer duty marginal rates replace 7 progressive rates with just 4 plus the abolition of duty for property under $20,000. Overall there in an increase of duty payable on the purchase of property valued over $590,000, although when combined with a residence concession, there is a reduction in duty payable for homes under $1 million.

The new rates effective from 1 July 2008 are as follows.

1. Transfer duty on dutiable property up to $20,000 will be abolished.

2. Between $20,001 and $100,000 duty will be 1.5%.

3. Between $100,001 and $500,000 duty will be $1,050 plus 3.5%.

4. Between $500,001 and $700,000 duty will be $17,325 plus 4.5%.

5. Over $700,000 duty will be $37,125 plus 4.5% .

The principal place of residence concession threshold will increase to $350,000.

From 1 September 2008 the threshold for the first home buyers transfer duty exemption is increased to $500,000.

Mortgage duty will be abolished from 1 July 2008.

The Land Tax threshold of $600,000 for the unimproved land value remains unchanged, however the current 5 land tax rates have been replaced with just 3, overall reducing land tax where the unimproved value is less than $3 million. Above that the rate of 1.25% is unchanged.

Read the relevant budget papers here: http://www.budget.qld.gov.au/budget-papers/2008-09/bp2-5-2008-09.pdf