Queensland Transfer Duty: Key Changes for Homebuyers

There have recently been two key changes to transfer duty in Queensland relating to the purchase of homes:-

1. From 6 December 2024, buyers who are eligible to claim the home concession or first home concession will be able to rent part of their property during the 12 month occupation period; and
2. From 1 May 2025, first home buyers purchasing a new home to live in, or vacant land on which to build a home to live in, will be able to have their stamp duty reduced to nil.

Changes from 6 December 2024

Prior to 6 December 2024, to claim the home concession or first home concession for transfer duty, buyers were required to (among other things) move into the property within 12 months of the settlement date and live there for a period of 12 months without transferring, selling, renting or otherwise moving out of the property and ceasing to use it as their principal place of residence (“12 month occupation period”).

The changes which came into effect from 6 December 2024 mean that during the 12 month occupation period, buyers who have claimed either the home concession or first home concession are now able to lease, rent or otherwise grant exclusive possession of part of their property during the 12 month occupation period. This means that buyers can rent out rooms and still claim the benefit of the concessions.

To be eligible, the lease arrangement must start on or after 10 September 2024 and the buyer must continue living in the property.

Buyers who have claimed these concessions are still not able to rent or otherwise grant exclusive possession of all of their property within the 12-month occupation period.

Changes from 1 May 2025

A new concession has come into effect from 1 May 2025 which relates to first home buyers buying a new home to live in or vacant land upon which they will build a new home to live in.

A ‘new home’ is a home that has not been previously occupied or sold as a place of residence, or, is substantially renovated.

There is now no threshold which applies to first home buyers claiming the first home concession on a new home purchase (or vacant land upon which they will build a new home), meaning that the stamp duty payable will be nil no matter the purchase price. This is on the basis that all other requirements for the first home new home concessions are met.

Buyers will only be able to claim the first home new home concession and first home vacant land concession if they are paying market value for the home – if the property (or part of the property) is being gifted buyers will not be eligible.

For first home buyers buying an already established home, there have been no changes to concessions and the threshold remains $800,000.00 (nil stamp duty is payable up to $700,000.00 and a concession applies if paying market value for a property between $700,001.00 and $799,999.00).

The changes to stamp duty intend to make it easier for buyers to get in the market and encourage first home buyers to build their first home.

If you would like further information about the recent changes to transfer duty or would like advices as to whether you are eligible to claim a concession, please get in contact with our property team.