The information in this article is current as at July 2024

If you’re considering purchasing property in Queensland, you’ve likely encountered the term "transfer duty" or "stamp duty." Transfer duty is a significant cost that comes with buying property, but the good news is that Queensland offers various concessions to help alleviate this financial burden. In this blog post, we’ll delve into what transfer duty is, the concessions available, and how they can benefit you.

WHAT IS TRANSFER DUTY?

Transfer Duty is a tax which is charged on the transfer of dutiable property in Queensland. Such transactions are called ‘Dutiable Transactions’, and include signing a contract to buy or sell a home (conveyancing). The amount of duty you pay is based on the property's value and the type of transaction.

WHAT CONCESSIONS ARE AVAILABLE?

There are numerous concessions and exemptions, and below we will address the 3 key concessions.

1. First Home Concessions:

There is a generous concession to first-time buyers. The grant provides financial assistance to help with the purchase of a new or substantially renovated home.

This only applies to homes valued under $800,000 and can save you up to $24,525.

For homes over $800,000 the home concession may still apply.

2. Home Concessions:

If you’re buying your principal place of residence, you might be eligible for a home concession. This concession reduces the amount of transfer duty payable on your home purchase. The eligibility for this concession depends on the value of your property.

If you are eligible, you will pay a reduced amount, saving you up to $7,175.

There are strict eligibility requirements for both home concessions including:

• You must be an individual (cannot be a company buyer)
• Move into the home and live there on a daily basis
• Not dispose (sell, transfer, lease or otherwise grant exclusive possession) of all or part of the property before you move in or within 1 year of settlement.

3. First Home Vacant Land Concession

If your purchasing vacant land to build your property you may be eligible for a concession.

It only applies to vacant land valued under $500,000 and can save you up to $10,675.

There is strict eligibility for this concession including:

• You must be an individual, and you must not have claimed a home concession before
• Only build 1 home on the land
• Must build and move in within 2 years of settlement
• Not dispose of the asset before you move in.

How to Apply for the Concessions

To apply for any of the above concessions, you'll need to complete the necessary paperwork and submit it to the Queensland Office of State Revenue. The process can be complicated as the rules do change often.

We recommend seeking expert legal advice. At Holt Ronan Lawyers our solicitors and conveyancers assist clients with this work daily, and ensure the process runs smoothly.

Disclaimer: This advice is general in nature and is not intended to be legal advice.

If you would like legal advice, please call our office on (07) 5619 0440 and we would be pleased to assist you.