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Hi everybody - George Sourris, Empire Legal.

Today's topic: First Home Concession QLD - UPDATED!

Ladies and gentlemen I'm excited to discuss today's topic with you all. An update to the threshold for the First Home Buyer Transfer Duty Concession.

So, Transfer Duty, which is formerly known as Stamp Duty, is a State Government duty payable by a purchaser when they buy land in Queensland. Keep in mind here that the First Home Owners Grant is completely separate to this topic.

We are discussing the First Home Concession for Transfer Duty in Queensland. You can claim both, if you're eligible. There's a link here explaining the differences between the two.  

The First Home Concession applies only to a home valued under $800,000, and can save you up to $24,525 in transfer duty. If the property you're looking at is over $800,000, then unfortunately you do not get the benefit of the First Home Concession.

The threshold for the concession changed on the 9th of June 2024. Previously, the First Home Concession stopped giving benefit when the purchase price of a property exceeded $550,000.

The Queensland Government has now increased this threshold to $800,000. Given that you could barely find yourself a two bedroom unit for under $550k in a lot of Brisbane City Council and surrounding regions, it's a great move by the Government to help first home buyers get into the market. 

So, if you've signed a contract to purchase before 9th of June 2024, you have the old benefit of the old laws, aka $550K. On or after 9th of June 2024, up to $800k.

You do NOT have to be an Australian Citizen or Permanent Resident to claim a concession, but you MUST meet the eligibility requirements. Additional Foreign Acquirer Duty (AFAD) may apply if you're foreign. 

Eligibility.

To be eligible for a First Home Concession when you buy or acquire a home in Queensland, you must:

1) be legally acquiring the property as an individual;

2) have never claimed the First Home Vacant land Concession;

3) have never had an interest in another residence anywhere in Australia or the world;

4) be  at least 18 years of age - this has a little asterisk guys. The Queensland Revenue Office (QRO) website has full eligibility details there, as sometimes under 18's can be granted special permission to claim this First Home Concession;

5) move into the property with your personal belongings and live there on a daily basis within one year of settlement. This time cannot be extended;

6) you cannot "dispose" - so that means sell, transfer, lease or otherwise grant exclusive possession of all or part of the property before you move in; and

7) be paying market value if the residence is valued between $700,001 and $799,999. 

To keep the benefit of the First Home Concession in full after you move in, you must not dispose of all or part of the property, including granny flats, within one year. A partial concession may apply if you dispose within one year. So if your circumstances change, you do have to notify the Queensland Revenue Office. 

There's a link available here to the Home Concession Eligibility Tester to find out if you're eligible to claim the Home Concession or First Home Concession.  

Two or more Acquirers. 

Provided you qualify, you can claim a First Home Concession on your interest or share, whether or not the other acquirer also qualifies for the First Home or Home Concession.

So, not every person acquiring the property needs to qualify for a concession or apply for the same concession. In some cases, people will have eligibility for different concessions or no eligibility. For example, a couple can buy their home, and one person could claim the First Home Concession, whilst the other one's not applicable for any sort of concession.

So, this is fine. It can get a little bit complex. So, when you're buying, your solicitor or conveyancer will be talking you through these different options and what they cost. 

Demolishing the home. 

The First Home Concession will not apply if you demolish the existing home without first living there, even if you construct and occupy a new home within a year. You MUST make the property your Principal Place of Residence in order to claim the concession. 

Existing tenants or previous owners.

Any existing tenants MUST move out when their lease expires or within six months of settlement, whichever is the earlier, for you to stay eligible for the concession. Previous owners who continue to stay in the property must also move out within six months. 

How much will I actually pay? 

Great question. So you can use the Transfer Duty Estimator, to find out how much duty you may have to pay when you buy your new home, based on the purchase price. I highly recommend you jump on and check it out, so you know how much you can save, and what you're going to pay based on the purchase price!

The First Home Concession is calculated at the Home Concession rate minus the First Home Concession amount. So, if the home is valued at $700,000 or under, the First Home Concession amount will match the Home Concession rate, which means no duty payable, or $0 in transfer duty.  The concession doesn't apply to any part of the land that is used for non-residential purposes.

There is a Public Ruling if you want to read more.  So basically, if you buy under $700k and you're eligible for the First Home Concession - great news - you're paying $0 in transfer duty. 

If your purchase price is market value between $700k and $800k, you get the benefit of a discount for the First Home Concession. Once the property is valued at over $800,000, there's no benefit available for the First Home Concession, and instead the Home Concession applies.

Vacant Land. 

The First Home Vacant Land Concession was also updated on 9th of June 2024. For land valued under $350K, there is $0 transfer duty payable. Between $350K and $500K, there's a sliding scale of concession available. After $500K, there is no concession available. Want to lknow more? Read about it in more depth here.

Fun fact  - prior to the 9th of June update, these figures were $250K and $400K respectively.

Guys, as part of the conveyancing process, we help our clients discuss eligibility, fill out the relevant forms and lodge direct to the Queensland Government the transfer duty. If any payments are owing, we work with our clients to make sure we make that payment on their behalf. 

Well, there you have it everybody - the latest update for Transfer Duty!

PS: we now have over 3,000 Instagram followers. Shout out to everyone for all of your support.  

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Thank you very much.

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George Sourris. Empire Legal.

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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.