What is Transfer Duty?
Transfer Duty, formerly known as stamp duty, is a fee that is imposed by the Government on a sale or transfer of a property in Queensland. The amount you owe depends on the property value, whether you are eligible for any concessions, if the property is a new or established property and whether you are a foreign person or entity.
There are 4 different types of home concessions available in Queensland:-
- Home Concession (for your second or subsequent home);
- First Home Concession (for your first home that is a second-hand property);
- First Home Concession (for your first home that is a new property);
- First Home Vacant Land Concession (for vacant land on which to build your first home).
You must meet specific criteria in order to claim one of the above concessions, otherwise, you will pay the full price for Transfer Duty.
Changes for First Home Buyers
First Home Concession (New Home)
From 1 May 2025, first home buyers in Queensland that are purchasing a new home to live in (or vacant land on which to build a home to live in) will be able to apply for a full transfer duty concession reducing the duty to nil. The new home must not have been previously occupied or sold as a place of residence or must be a substantially renovated home.
First Home Concession (Second-Hand Property)
The threshold for the first home concession on second-hand properties also changed on 9 June 2024, allowing buyers a concession when purchasing a home valued under $800,000.00, with a saving up to $24,525.00. First home buyers purchasing a second-hand property, can now receive a full concession (nil duty) for properties valued under $700,000.00.
The main impact of this change for first home buyers is increased affordability, as stamp duty can be one of the largest additional expenses involved in entering the market. Depending on the property price and whether the property is new or second-hand, savings could range from thousands to tens of thousands, which will hopefully result in increased homeownership rates in Queensland.
Eligibility
To be eligible for the new first home concession you must satisfy the following criteria:-
- Be legally acquiring the property as an individual;
- Have never claimed the first home vacant land concession previously;
- Have never held an interest in another residence anywhere in Australia or overseas;
- You must be at least 18 years of age;
- You must move into the property with your personal belongings as your principal place of residence, within 1 year from settlement;
- You must not sell, transfer part of the property or rent out the property before you move in;
- You must be paying market value for the property; and
- You must provide a vendor statement as evidence that the home is a new home or substantially renovated home.
Requirements
If you have claimed the first home (new home) concession, as stated above, there are certain requirements that you must follow in order to keep the concession.
Before you move in
You are not able to sell, transfer or lease all or part of the property to a third party.
After you move in
If you sell or transfer the property after you move in, within the first year, you may still be eligible for a partial concession. You are not able to lease the entire property within the first year of moving into the property as your principal place of residence. However, starting on 10 September 2024, individuals that claimed the first home (new home) concession can rent out part of the property (i.e. rent out a room of the property to a tenant).
What happens if my circumstances change after claiming a concession?
If your circumstances change within the first year following settlement, it is important to note that you must ask for a reassessment.
Two common examples of when to reassess are as follows:-
- You claimed the first home (new home) concession and decided instead of moving into the property, you rented out the entire property to a tenant;
You will need a reassessment to pay the additional duty back to Queensland Revenue Office.
- You claimed the first home (new home) concession and moved into the property after settlement, however your circumstances changed, and you have moved out within 6 months. Once, you have moved out, you then rent the entire property to a tenant.
You will need a reassessment to pay the additional duty back to Queensland Revenue Office.
It is important to notify your solicitor if your circumstances change in the first year from settlement, to organise the appropriate documentation for the reassessment and to avoid additional fines in the future. If you have any questions regarding your eligibility or in relation to stamp duty in general, please do not hesitate to contact SPG Lawyers
