In this blog/video, we break down how QLD buyers can apply for a reassessment of transfer duty (aka stamp duty) — and why it’s worth checking even after you’ve settled.

We explore what a transfer duty reassessment is, why buyers who missed the first home concession might get a refund, what forms you’ll need, and more...

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Hi everybody - George Sourris, Empire Legal.

Stamp duty, officially known as transfer duty, is one of the biggest upfront costs when buying property in Queensland. But what many buyers don't realise is - you can ask for a reassessment of your transfer duty if your circumstances change, you might get a refund if you've overpaid, or you might owe more if you've underpaid based on inaccurate or outdated information. Whether you're a first time buyer, an investor, or just someone trying to do the right thing, reassessing your transfer duty could save you thousands, or save you from a future penalty. Let's break it down.

What is a transfer duty reassessment?

A transfer duty reassessment is when the Queensland Revenue Office (QRO), reevaluates your original duty amount. Usually because something has changed.

You might now be eligible for a concession you didn't claim, or maybe your intended use of the property has changed. It also applies when errors were made at the time of assessment, whether by the buyer, the conveyancer, or the lender. Here's the key - reassessments can go both ways. They can result in a refund (you overpaid), an additional amount payable (you underpaid) or a corrected duty amount based on your updated situation. Knowing what to check and when to act is crucial.

Common reasons to request a reassessment.

Here are four real world scenarios that frequently lead to reassessment.

Number one - you miss the first home concession.

You paid full duty when you bought your first home, but later realised you qualified for the first home concession, which can reduce your transfer duty to as little as $0 for properties valued under $700,000. That's for an existing property. If you're in Queensland and it's a new build, great news, you're paying $0 stamps.

If you are still within the time limit, a reassessment can fix this issue.

Number two - you moved in after settlement.

You originally declared the property as an investment, but later changed your mind and moved in. If you occupy the property within 12 months and meet QRO's criteria, you may now qualify for the home concession, reducing your duty by up to $7,175.

Number three - changed use of property - underpayment risk.

On the flip side, if you claimed the home concession, but you never moved in or you moved out too soon, i.e. "disposed" of the property, QRO may reassess your file and require repayment of the duty discount, sometimes with interest. We've seen buyers caught out during audits or when selling later. If your circumstances change, notify QRO ASAP to avoid fines.

Number four - joint buyers with mixed eligibility.

Two people buy a property together, with one first home buyer and the other not. Their concessions may be different depending on if they've owned property before, the purchase price, et cetera. If you've applied incorrectly or missed the nuance, QRO may reassess to apply the correct proportional discount.

Again, guys, a good conveyancer is going to be asking you all the right questions to make sure you don't come unstuck. We have a lot of information we give our clients, but if you are out there in the big bad world, and you've been given the wrong information, it's not all over. You can apply for a reassessment.

Let's do a quick hypothetical example.

Let's just say a buyer purchases a home for $600,000 in Brisbane and pays full transfer duty, $15,925. Several months later, while reviewing paperwork for refinancing, they realised they may have been eligible for the home concession, which could have reduced the duty by $7,175.

At the time of the purchase, they didn't know the concession existed, as their conveyancer hadn't raised it. Don't go with cheap conveyancers. They lodged a reassessment request with QRO ASAP, supplying proof of occupancy, statutory declarations, and their original notice of assessment. The result - it got approved, they received a refund from the overpaid amount.

The takeaway - even if you've already paid, it's worth double checking, especially if you're a first home buyer, or your circumstances have changed since settlement. Time limits to keep in mind. Timing is everything when it comes to reassessment. Here's a general rule. You must notify QRO within 28 days of you becoming aware of a change of your original assessment and if it affects your eligibility for a concession.

What documents do I need?

The specific documents depend on your situation, but most reassessments require a completed reassessment form, a form D2.4. We're going to put a link in the blog for that. Your notice of assessment from when you originally put the notice in, and the transfer and Form 24..

Supporting documents as well, such as ID, settlement statements, title search, proof of occupancy, stat dec's, et cetera. All the information you need is on the QRO website. Of course, if we did your conveyancing and your circumstances change, flick us an email. We can send everything through in a nice little pack.

We do that as part of our post settlement process anyway, so if you're an old client of the firm, it'll be our post settlement pack of information we've sent to you.

Think you've overpaid or underpaid, get it sorted asap. Whether you're a first home buyer, an investor, or anyone in between, transfer duty errors cost money, but there're also fixable guys, if you act quickly.

Hopefully after consuming this content, you feel confident to make an informed decision about your transfer duty situation. You can find more information, including the forms and the process to begin a reassessment on the QRO website, we're going to put the link in the blog for you.

Well, that's it for this week. Stamp duty, lots of money being thrown around. You could save thousands if your circumstances change. Again, guys, it's worth double checking if you're unsure. And again, remember for yourselves, if your circumstances change within 28 days, you need to notify the QRO and get all the forms in.

Thanks very much. We'll see you next week.

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Thanks guys. We'll see you next week!

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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.