Buying property in Queensland? Don’t get stung by unnecessary stamp duty. Also known as transfer duty, this tax can add tens of thousands to your purchase price - but savvy buyers know how to reduce it or avoid it completely!
From first home buyer exemptions to vacant land concessions, there are legit ways to slash your transfer duty bill. In this guide, we break down what you’re entitled to, who qualifies, and the costly mistakes to avoid.
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Hi everybody - George Sourris, Empire Legal.
Today's topic: Queensland stamp duty (transfer duty) concessions explained
If you're buying a property in Queensland, one of the biggest upfront costs you'll face is what most people still call stamp duty. Technically it's called transfer duty, but whatever you call it, it can add tens of thousands of dollars to the cost of buying a home.
Transfer duty is a government tax triggered when a dutiable transaction occurs. A dutiable transaction occurs when a property changes hands. The good news - Queensland offers a number of transfer duty concessions and exemptions that can significantly reduce or even eliminate what you'll pay if you qualify. This blog explains what concessions are available right now, who qualifies, and where buyers often get caught out.
What is transfer duty in Queensland?
Transfer duty is the tax payable when you buy property or land. It's calculated based on the purchase price or dutiable value and the buyer's circumstances - owner occupier, first home investor, et cetera. Although people still call it stamp duty, the legal term is transfer duty, and it's administered by the Queensland Revenue Office (QRO).
What is a transfer duty concession?
A transfer duty concession reduces the amount of duty you'll otherwise pay. Concessions are available for certain buyers, most commonly: first home buyers, owner occupiers, and buyers of new homes, or vacant land intended for a principal place of residence. Each concession has strict eligibility rules, and if you don't meet them, the concession can be withdrawn later, sometimes even years after settlement.
So it pays to be honest, because there's penalties if you do the wrong thing.
First Home concession.
The first home buyer's concession is one of the most generous concessions in Queensland. You may qualify if you've never owned property before and you're buying an existing home to live in as your principal place of residence.
Current thresholds:
Full transfer duty exemption for homes up to $700,000 (so you will pay $0 in transfer duty).
Concessional duty, applies for properties priced between $700,001 and $800,000. This means you get a first home buyer discount on the transfer duty fee, but still need to pay some transfer duty towards the purchase.
Above $800,000 - No first home concession applies because you've got enough money and there'll be no discount given by the government.
Different thresholds apply for vacant land, which are explained later in this blog.
Home concession - for owner occupiers.
If you're not a first home buyer and you're buying a property to live in, you may qualify for the home concession.
This concession applies where the property will be your principle place of residence, and you move in within the required timeframe after settlement. The home concession reduces transfer duty compared to an investor purchase, but it's not as generous as the first home buyer's concession.
A common misconception here is that people are not eligible for it. If you're buying a property to live in, in your personal names, not in a company name, then you can use the home concession.
New home and vacant land concessions.
Queensland also provides incentives for buyers purchasing newly built homes or vacant land intended for construction of a principal place of residence.
The transfer duty concessions mean you'll pay $0 in transfer duty, providing you're eligible. These concessions are designed to encourage housing supply and owner occupation, but they come with strict build and occupancy requirements.
Failing to build or move in within the required timeframes can trigger a reassessment of duty, plus interest. For example, you'll need to, amongst other things, have purchased the property on or after 1st of May 2025. If so, there's no price cap to receive the $0 first home concession.
Back in my day, that didn't exist, so really cool for those entering the market, being able to pay $0 for their first home or land.
First home vacant concession for vacant land to build your first home.
If you are a first home buyer buying vacant land to build your first home, you may be eligible for a full transfer duty concession, meaning no duty payable on the land at all, regardless of the value. This applies when the contract is signed. From 01 May 2025, vacant land contacts for eligible first home buyers attract a $0 transfer duty fee! More information here.
Important occupancy rules.
This is where most people get caught out.
Most concessions require you to move into the property within a specified period of time - usually 12 months, and then live there continuously for a minimum period, again, usually 12 months. If you rent the property out too early, never move in, or change the use of the property, you'll be required to repay the concession in full, sometimes even years later.
This one is the most common where we see issues; usually where clients refinance or sell. However, some new rules allow first home buyers to rent out rooms, but still remain eligible for the concession. Link here for more information. Again, this is another new law. It's great you have to live in the home as well, but you can rent out your spare rooms and there's even certain lenders - I know CBA does it - that will factor that rental income into your loan. Very cool.
What if you've owned property before?
Owning property doesn't automatically disqualify you from all concessions, but it usually excludes you from the first home buyer benefits. You'll still be able to claim the home concession (instead of the first home concession), which offers a cheaper rate for transfer duty.
However, like I've already said, there are eligibility requirements - like having the property as your principal place of residence and residing there for at least 12 months without subleasing or disposing of the property prior.
Common transfer duty mistakes.
We regularly see buyers trip up by assuming stamp duty exemptions apply automatically, and claiming concessions that they're not qualified to take.
Also, misunderstanding occupancy requirements and not getting advice before settlement. The QRO has the power to reassess duty years later, and penalties can apply. Also, they spot check. So don't think you're smarter than the government. They will find you. They will catch you, and you will pay the price. Not to mention it's illegal.
Wrapping Up
Empire Legal's Practical advice. Don't assume you qualify for a concession - check before settlement. Be clear on whether you're buying as an owner occupier, or an investor. Understand your move in and occupancy obligations. Get advice early, not after the transfer duty assessment is issued.
Transfer duty is often one of the largest cash costs in a transaction for property. Getting it wrong can blow out your budget fast. The Queensland government has a transfer duty home concession eligibility tester - here is the link. I strongly suggest you have a look. It's a really handy tool to help you understand your eligibility.
You click through based on your circumstances, and it tells you whether you are eligible or not.
Final Words
Stamp duty (transfer duty) is unavoidable in Queensland property transactions, but overpaying is not. If you're buying property and wanna understand what concessions you're entitled to and what conditions apply, getting advice early can save you serious money and stress. We help all of our clients navigate transfer duty, and of course take the time to explain the options and the eligibility.
Your banker and broker will also be across this guys. They'll be factoring that into your pre-approval or your approval.
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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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