Transfer Duty Guide for Home Buyers in Queensland

In Queensland, transfer duty (also known as stamp duty) is a tax imposed on property transactions, including the purchase of a home. The duty amount is calculated based on the purchase price or the market value of the property, whichever is higher. Each state in Australia has different transfer duty guidelines. In Queensland, home buyers can benefit from various concessions aimed at reducing the financial burden of purchasing a home, particularly for first-time buyers and those intending to live in the property.

When and Who Pays Transfer Duty:

Generally, the buyer of the property is responsible for paying transfer duty. It is typically paid at the time of settlement or within 30 days after the contract for the property becomes unconditional or the property transfer is completed. The duty is payable to the Queensland State Revenue Office. The Commissioner may grant an extension of time to lodge an agreement for the transfer of dutiable property under certain circumstances.

Below is an outline of the available concessions and key eligibility criteria in Queensland:

First home buyers

The first home concession applies to individuals purchasing their first home, provided it is intended to be their principal place of residence. The following criteria apply:

• The buyer must not have previously owned residential property or vacant land anywhere in Australia or overseas.
• The property must be the buyer’s principal place of residence (not an investment or holiday home).
• The buyer must move into the home with personal belongings and reside there daily within 12 months of settlement. This timeframe is fixed and cannot be extended.
• The buyer must live in the home continuously for at least one year.
• The buyer must not sell, transfer, lease, or grant exclusive possession of the property before moving in or within the first 12 months of occupancy.
• The property must be purchased by individuals, not by a company or trustee.

Citizenship and Visa Requirements

The buyer does not need to be an Australian citizen or permanent resident to claim a concession, provided all other eligibility criteria are met. However, an additional 8% foreign acquirer duty applies if the buyer is a foreign person (not an Australian citizen or permanent resident).

Purchase Price Threshold for First Home Concession

• If the purchase price of the home is $700,000 or less, the buyer may be eligible for a first home transfer duty concession, which aligns with the home concession rate, resulting in no transfer duty payable.
• For homes valued between $700,001 and $800,000, the first home concession still applies but at a reduced rate, meaning some transfer duty is payable.
• For homes valued over $800,000, the first home concession does not apply. Standard transfer duty rates will apply instead. However, the buyer may still qualify for the general home concession if other criteria are met.

Home buyer concession

This concession applies to all home buyers, not just first-home buyers. It offers a reduced duty rate when purchasing another home after the first. Only individuals are eligible to claim this concession; companies and trustees are excluded. While it reduces the transfer duty payable compared to an investment property, it does not eliminate the duty like the first home concession might.

To retain the home buyer concession, the following conditions must be met:

• The buyer must not sell or transfer any portion of the property before moving in.
• The buyer must move in with personal belongings and reside daily in the home within 12 months of settlement.
• The buyer must live in the property for at least one year continuously.

Visa or Citizenship Requirement: The buyer does not need to be an Australian citizen or permanent resident, but an 8% foreign acquirer duty applies if they are classified as a foreign person.

Purchase Price Threshold – Home Buyer Concession

A full concession applies to the first $350,000 of the property’s value. Any amount above this is taxed at standard transfer duty rates.

Vacant Land for First Home

When purchasing vacant land in Queensland to build a first home, the buyer may be eligible for a First Home Vacant Land Concession on transfer (stamp) duty. This concession is designed to support first-time buyers by reducing upfront costs associated with acquiring land.

Visa or Citizenship Requirement: The buyer does not need to be an Australian citizen or permanent resident to claim this concession. However, if classified as a foreign person, additional 8% foreign acquirer duty will apply.

To qualify for the First Home Vacant Land Concession, the buyer must meet the following Eligibility Criteria: 

• Be legally acquiring the land as an individual (company or trustee are not eligible).
• Not have previously claimed this concession.
• Not have held an interest in any residence in Australia or overseas.
• Be at least 18 years of age.
• Be paying market value for land valued between $350,001 and $499,999.
• Build a first home on the land, move in with personal belongings, and live there on a daily basis within 2 years of settlement (this period cannot be extended).
• Only build one home on the land.
• Ensure there is no building or part of a building on the land at the time of acquisition.
• Meet certain post-concession requirements as outlined by the Queensland Revenue Office.

At SABDIA LAWYERS, we are committed to helping our clients protect their business interests. Contact SABDIA LAWYERS today for expert legal advice and support to ensure your business meets all legal obligations.

Disclaimer: This guide is intended for educational and awareness purposes only. It should not be considered or construed as legal advice. Legal obligations may vary depending on individual circumstances. For tailored legal advice, please contact SABDIA LAWYERS or a qualified legal expert.