The Queensland Government’s Stamp Duty (Transfer Duty) Concession 

What is stamp duty?

Stamp duty (also known as transfer duty) is a tax imposed across Australia by the various state and territory governments. The tax is levied on several types of purchases including property. If you purchase a property then you, the purchaser, are required to pay stamp duty.

The rate of stamp duty varies between states. In Queensland the non-concessional rates are

Value Stamp Duty Rate
Not more than $5,000 Nil
More than $5,000 up to $75,000 $1.50 for each $100, or part of $100, over $5,000
$75,000 to $540,000 $1,050 plus $3.50 for each $100, or part of $100, over $75,000
$540,000 to $1,000,000 $17,325 plus $4.50 for each $100, or part of $100, over $540,000
More than $1,000,000 $38,025 plus $5.75 for each $100, or part of $100, over $1,000,000

Clearly, stamp duty is a major cost on any property purchase. Thankfully the Queensland state government have introduced a number of stamp duty concessions to assist purchasers and in particular first home buyers.

 

The First Home Stamp Duty Concession 

What is it?

A concessional stamp duty rate applicable to purchasers acquiring their first residence. The first home concession is only applicable to a home valued under $550,000. Up to the value of $500,000 you will not pay any transfer duty if you are eligible for the concession.

How much does it save me?

With a property valued at $500,000 you would pay $0 stamp duty. This is a saving of $15,925 over an investor buying the same property.

Example: The First Home Stamp Duty Concession

Dutiable value of home $500,000
Concessional transfer duty on $500,000 $0
Total transfer duty $0
(Without the home concession, the transfer duty would be $15,925.)

What are the eligibility criteria?

To be eligible for a first home concession when you buy or acquire a home, you must:

  • have never claimed the first home vacant land concession (explained below)
  • have never held an interest in a residence anywhere in Australia or overseas.
  • be at least 18 years of age (this requirement may be waived under certain exceptional circumstances)
  • move into it with your personal belongings and live there on a daily basis within 1 year of settlement
  • not dispose (sell, transfer, lease or otherwise grant exclusive possession) of all or part of the property before you move in
  • be paying market value if the residence is valued between $500,001 and $549,999.
  • 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 within 1 year. A partial concession may apply if you dispose within 1 year.

 

What if I demolish 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 need to have lived in the home continuously for 3 months prior to demolishing it to retain your stamp duty concession.

What if I have existing tenants or previous owners renting the property I have purchased?

You are still eligible for the concession as long as the existing tenants or previous owners move out within 6 months of settlement.

I’m not an Australian citizen or permanent resident, do I still qualify for the concession?

You do not have to be an Australian citizen or permanent resident to claim a concession. However, additional foreign acquirer duty (AFAD) may apply if you are a foreign person. This duty since the 1st of July 2018 is currently an additional 7% transfer duty.

How do I claim the Queensland First Home Stamp Duty Concession?

Generally, you would get your solicitor/conveyancer to assist you with completing the required forms as they will need to have calculated your stamp duty liability prior to settlement.

You can download the claim form from the link below.

https://www.publications.qld.gov.au/dataset/form-osr-d2-1-claim-home-first-home-concession

The Home Stamp Duty Concession

 What is it?

You can claim a home concession for transfer duty when acquiring a residence to live in, i.e. an owner-occupied property.

Unlike the first home concession, you can claim the home concession even when you have owned a home previously.

The home concession rate applies to the first $350,000 of the value of the residence, and the general transfer duty rates then apply to the balance.

 

How much does it save me?

With a property valued at $500,000 you would pay $8,750 stamp duty. This is a saving of $7,175 over an investor buying the same property.

Example: The Home Stamp Duty Concession

Dutiable value of home $500,000
Concessional transfer duty on first $350,000 $3,500
Transfer duty on balance ($150,000) $5,250
Total transfer duty $8,750
(Without the home concession, the transfer duty would be $15,925.)

 Eligibility Criteria

  • be at least 18 years of age (this requirement may be waived under certain exceptional circumstances)
  • move into it with your personal belongings and live there on a daily basis within 1 year of settlement
  • 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 within 1 year. A partial concession may apply if you dispose within 1 year.

The First Home Vacant Land Stamp Duty Concession

What is it?

You can claim a first home vacant land concession for transfer duty when acquiring vacant land to build your first home.

The first home vacant land concession only applies to vacant land valued under $400,000. Below $250,000 you would pay $0 stamp duty. Between $250,000 and $399,000 a sliding scale applies to the concession.

How much does it save me?

For example, if you were purchasing vacant land valued at no more than $250,000 you would pay $0 stamp duty. This is a saving of $7,175 over an investor buying the same land.

Example: The First Home Vacant Land Stamp Duty Concession

Dutiable value of land $250,000
Concessional transfer duty on first $250,000 $0
Total transfer duty $0
(Without the vacant land concession, the transfer duty would be $7,175.)

What are the eligibility criteria?

To be eligible for a first home vacant land concession when you buy or acquire vacant land, you must:

  • have never claimed the first home vacant land concession before
  • have never held an interest in a residence anywhere in Australia or overseas
  • be at least 18 years of age (we explain below when we may waive this requirement)
  • be paying market value if the vacant land is valued between $320,001 and $399,999
  • build your first home on the land, move in with your personal belongings, and live there on a daily basis within 2 years of settlement
  • only build 1 home on the land
  • be certain there is no building, or part of a building, on the land when you acquire it
  • not dispose (sell, transfer, lease or otherwise grant exclusive possession) of all or part of the property before you move in.
  • 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 within 1 year. A partial concession may apply if you dispose within 1 year.

Queensland government stamp duty estimator.

https://www.qld.gov.au/housing/buying-owning-home/advice-buying-home/transfer-duty/how-much-you-will-pay/calculating-transfer-duty/estimate-transfer-duty

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