In this blog/video, we break down 3 major property law changes in 2025 that every real estate professional, buyer, seller, and investor in Queensland should know.

We explore the updated ATO clearance certificate rules, higher foreign buyer taxes, and the FIRB fee increases that are reshaping how transactions are handled across Queensland.

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Hi everybody - George Sourris, Empire Legal.

Today's topic: 3 Major 2025 Property Law Updates You Need to Know (Now!)

As most of you know, I go around to real estate offices to provide training and updates all around property law in Queensland. There's consistently 3 topics I've noticed that people always seem to get wrong.

Today I am going to discuss them here. At Empire Legal, we're all about keeping you in the loop. Whilst you may have seen these topics discussed by us when they were hot off the press,  here are the 3 major updates in property law you absolutely need to know in 2025:

1. ATO Clearance Certificate changes.

So this started on the 1st of January 2025. Foreign resident capital gains withholding clearance certificate rules changed and apply to everyone. So previously, only properties valued at over $750,000, required sellers to provide a clearance certificate to avoid a 12.5% withholding at settlement.

Now, the $750K threshold has been scrapped. It's now $0. The withholding rate has increased from 12.5% to 15%. So what does this mean? If you're selling any property in Queensland of any value, and you don't provide a valid ATO clearance certificate at settlement, 15% of your sale price will be withheld and sent to the ATO.  

Top tip: apply for your clearance certificates early. Most are issued within a few days, but they can take up to 28 days. Certificates are valid for 12 months, and you don't have to wait until you've signed a contract to apply. They're not property specific. They apply to the individual entity for that 12 month period.

Agents, encourage your sellers to apply as early as the Form 6 stage to avoid delays. We'll put a link in the blog on how to apply for the clearance certificate. 

2. AFAD - Additional Foreign Acquirer Duty price increase. 

If you're a foreign buyer, don't forget, Queensland changes on AFAD - 8% on top of the standard transfer duty. This used to be 7% last year. It's now increased to 8%.

This applies to residential property purchases with foreign individuals and companies, ensuring everyone who benefits from local services and infrastructure contributes fairly, just like the Aussie locals who have been paying taxes for years. So that's why that surcharge exists. AFAD is payable at the same time as the usual transfer duty, so factor that into your settlement costs. It's an additional fee.

3. FIRB - Foreign Investment Review Board has tripled for buyers.

The federal government made major changes to FIRB last year, 9th of April 2024, aimed at easing the housing squeeze for Australians.

FIRB approval is required for foreign buyers who want to purchase property in Australia. In short, FIRB fees for foreign buyers have tripled for established homes. The fees work on a tiered system per $1 million. So for a property up to $1m, the FIRB fee is now $44,100. For properties between $1-2 million, it's now a massive $88,500, and so on. So for a $6-7 million property, for example, expect to pay $531,000 in FIRB application fees alone. Keep in mind guys, this is just the application fee. There's no guarantee of success or that you'll be approved. On top of that, foreigners also need to pay the AFAD that we just spoke about, the 8% of the purchase price as additional duty in Queensland, and of course the standard duty fees.

All right, here's a quick example. A $1m property in Queensland as a foreign buyer now attracts: $30,850 in transfer duty, $44,100, FIRB fee as an application, and $80,000 AFAD fee. That's over $150,000 in costs. Pretty wild, right?

Exemptions.

If a spouse of an Australian citizen or permanent resident is foreign, they may be exempt from paying transfer duty. We cover them in more detail in another blog - here is the link.

Conclusion.

Stay ahead of the game with Empire Legal. These changes can have a huge impact on your transaction, whether you're a seller, buyer, agent, or other professional advisor. It's so important to make sure you know the new laws. So when you're having these conversations with clients, you come across as the knowledgeable professional who knows the answer to these things.

We want to work with you. If you're an agent, banker, broker, or anyone involved in Queensland Property, we'd love to help you and your clients have Queensland's most trusted conveyancing experience. We've got over 2,600 Google reviews with a 5 star average. It's very simple. All you need to do to make us your preferred choice is just send us a copy of the contract or get in touch with us and we will make your transaction a smooth sail all the way through to settlement.

Alright guys - please like, subscribe and share. 820 subscribers on YouTube now, getting that up to 1,000, that's not too far away. We are the source of the latest property news for Queensland. 

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That's it for this week. Arm yourself with these 3 tips. Remember those stats for the foreigners and the ATO clearance. And you'll be well on your way to being one of the more knowledgeable professionals in QLD. Thanks guys. See you next week.

I would love to hear your thoughts. Head over to our Instgram or YouTube and drop us a comment please.

Also, a reminder to email me if you have any blog suggestions where we can help this audience. What do you want to know? Please email me and I will continue to create helpful, informative, free, easy to digest content. You can catch me at george@empirelegal.com.au.

Guys, that's it for this week. Thank you so much. As you know, there's not too many property lawyers in Queensland getting out in front of a camera every week, bringing the latest breaking property news to you. It's all free, doesn't cost you a dollar. Just want you to subscribe - so we can help more people get found.

Thanks guys. We'll see you next week!

If you know anyone that is involved in Queensland property, or is just genuinely curious - send them our page, send them our channel. It's all free content. We just want to help you be armed with the tools to make good decisions. Check out our website for more blogs. We've got over 100! 

We want to help you. If you've been listening to us for a while, but you haven't made contact, please do! We want to help people buy and sell homes and deliver QLD's best conveyancing experience. Thanks guys, we'll see you next week.

Subscribe to our YouTube and our blog. We want to get to 1,000 YouTube subscribers. We're only going to do that with your help. We're giving out this content for FREE to help you and your peers. Spread the good word of Empire Legal. We want to help everyone make property law in Queensland easy and smooth sailing. 

If you have any questions, you can email me: george@empirelegal.com.au. 

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Thanks for reading everybody. See you on the next one.

Ladies and gentlemen, please keep in mind that all advice is general in nature and does not constitute legal advice. This is authorised by George Sourris, Empire Legal, Brisbane, Queensland, Australia.

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Note: all information is general in nature and as each matter is unique please contact our office for tailored advices: the above does not constitute legal advice.