QLD Government Abolishes Stamp Duty for First Home Buyers of New Builds: What This Means for You

The Queensland Government has announced a reform aimed at easing the burden on some first home buyers. Effective from 1 May 2025, first-time buyers who purchase a newly built home or vacant land to build a home will be eligible for a full transfer duty concession, reducing the duty to nil. This concession removes one of the most significant financial barriers for new homebuyers, helping to make homeownership more accessible and affordable.

With property prices on the rise, this new incentive aims to give some first-time buyers a leg up in an increasingly competitive housing market.

Thresholds and example calculations
Previously, the State offered a reduced transfer duty rate under the First Home Concession, but this will be completely abolished for eligible buyers.

What Does This Mean for First Home Buyers?

This new policy completely removes stamp duty for first home buyers of new builds, meaning that the entire amount can be reinvested into the home, helping cover other associated costs.

With the median property value in Queensland continuing to rise, this reform offers significant savings so qualifying buyers can now focus on other aspects of homeownership, such as securing a better mortgage rate, renovating their new home, or covering legal fees, rather than worrying about the hefty cost of stamp duty.

What About Foreign First Home Buyers?

You do not have to be an Australian citizen or permanent resident to claim a first home concession, but you must meet the eligibility criteria. If you are a foreign person, Additional Foreign Acquirer Duty (AFAD) may apply unless you fall under a specific exemption.

In Queensland, as at the date of this blog, a foreign acquirer is liable for an additional duty of 8% of the GST inclusive purchase value of their interest in the property. AFAD is payable in addition to any other applicable transfer duty.

Find out hereif you, your company or your trust are considered foreign persons for additional foreign acquirer (stamp) duty.

Who is Eligible for the First Home Concession?

The eligibility for a first home concession is likely to be similar to the current requirements, including:

1. Be legally acquiring the property as an individual (companies and most trusts are not eligible);
2. Have never previously claimed the first home concession or first home vacant land concession;
3. Have never held an interest in another residence anywhere in Australia or overseas;
4. Be at least 18 years of age;
5. Move into the residence with your personal belongings and live there on a daily basis within 1 year of settlement (this time cannot be extended);
6. Not dispose (sell, transfer, lease or otherwise grant exclusive possession) of all or part of the property before you move in.
   
   

Who is Eligible for the First Home Vacant Land Concession?

The eligibility for a first home vacant land concession is likely to be similar to the current requirements, including:

1. Be legally acquiring the property as an individual (companies and most trusts are not eligible);
2. Have never previously claimed the first home concession or first home vacant land concession;
3. Have never held an interest in another residence anywhere in Australia or overseas;
4. Be at least 18 years of age;
5. 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 (this time cannot be extended);
6. Only build 1 home on the land;
7. Be certain there is no building, or part of a building, on the land when you acquire it.
8. Not dispose (sell, transfer, lease or otherwise grant exclusive possession) of all or part of the property before you move in.
   
   

Requirements after you move in

After you move in:
• You are able to lease, rent or otherwise grant exclusive possession of part of the property, providing that the lease arrangement starts on or after 10 September 2024 and you continue to live in the property. Where the lease arrangement starts before this date, you may lose the concession.
• You are not able to lease, rent or otherwise grant exclusive possession of all of the property within 1 year after you move into the property.

First Home Concession on existing homes

First home buyers interested in purchasing an existing home will not pay duty on existing homes valued up to $700,000. Above this threshold, the home concession may apply. For example, $21,850 duty on a value of $800,000.

How Can Lawlab Help?
As a national property law firm, lawlab appreciates how complex and overwhelming the process of buying a home can be, especially when new laws and concessions are introduced. Our team is here to guide you through the process, from understanding your eligibility for stamp duty exemptions to navigating the legal paperwork and ensuring that your transaction is smooth and stress-free.

Contact us today to learn how we can help you take full advantage of the new stamp duty concession and make your journey to homeownership easier than ever!

Chantal Froneman

Chantal joined Lawlab with a keen interest in property law, bringing her experience in litigation and client advocacy to help individuals navigate the intricacies of property transactions with confidence and clarity. Outside of her legal work, Chantal enjoys spending time outdoors, whether it’s exploring nature or engaging in recreational activities. She is also passionate about volunteering at charitable functions, giving back to the community whenever she can. In her free time, she appreciates brunches with friends and family, enjoying good food and great company.