If you're planning to purchase property in Queensland, understanding stamp duty exemptions could save you thousands of dollars. Whether you're a first home buyer or looking to upgrade your family home, knowing which concessions apply to your situation is essential for making informed property decisions.
What is stamp duty and how do QLD stamp duty exemptions work?
Stamp duty – officially called transfer duty in Queensland – is a one-off tax paid when you purchase property or land. This government levy applies whenever ownership of land transfers from one party to another, typically when you sign a contract to buy a home.
The amount of stamp duty you pay depends on several factors: the property's value, whether it's residential or commercial and whether you intend to live in the property yourself.
For many buyers, stamp duty is one of the highest upfront costs of purchasing property, sometimes reaching tens of thousands of dollars.
The good news is that Queensland offers various stamp duty exemptions and concessions designed to make property ownership more accessible. These concessions can significantly reduce or even eliminate your stamp duty obligation, depending on your circumstances and the property you're purchasing.
Who is eligible for stamp duty exemptions in QLD?
Queensland offers three main types of stamp duty concessions, each targeting different buyer situations.
1. The First Home Concession is split into two:
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First home buyers purchasing an established home: Properties valued under $800,000 qualify, with potential savings up to $24,525. Full exemption applies to properties under $700,000, with concessions gradually reducing on a sliding scale up to $800,000.
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First home buyers purchasing a new home: If the first home you are buying is brand new or substantially renovated, you may be able to claim a full concession, reducing your transfer duty to zero.
2. The Home Concession isn’t limited to first home buyers. Any buyer purchasing a property as their principal place of residence (PPR) can access this concession. It applies to the first $350,000 of the property value, saving eligible buyers up to $7,175.
3. The First Home Vacant Land Concession helps first home buyers purchase land to build their first home. For contracts entered into before 1 May 2025, the concession applies to land valued under $500,000, potentially saving up to $10,675. From 1 May 2025 onwards, buyers might not pay any duty on residential vacant land.
First home buyer stamp duty concessions in Queensland
The First Home Concession offers substantial savings for first home buyers entering the Queensland property market.
There are two types of concessions you may qualify for, depending on the type of property you are buying.
First home concession (established)
The standard First Home Concession is designed for established (previously occupied) homes. As of the changes announced in June 2024, the thresholds have increased significantly:
This means that properties valued at $700,00 or less will have a full exemption and pay no stamp duty.
Let’s look at an example. A first home buyer finds a unit they really like in Brisbane. It is around the city’s current median unit value of $792,000, according to Cotality. To calculate the stamp duty, we first apply the Home Concession rate for this price bracket, which results in a duty of $21,490. Because they are eligible for the First Home Concession, a saving of $1,735 (for the $790,000 to $799,999.99 range) is then deducted. This brings their total payable transfer duty to $19,755.
For comparison, a property investor acquiring the same unit would pay the full general rate of $28,665, demonstrating that the first home concession provides a saving of almost $9,000 on this transaction.
First home concession (new)
From 1 May 2025, first home buyers buying a new or substantially renovated home can qualify for an exemption on transfer duty. This is a full exemption, meaning you will pay no transfer duty on a new home.
A ‘new’ home is one that has not been previously occupied or sold as a place of residence, or it is a substantially renovated home which has not been previously occupied or sold since the renovations.
Unlike the established homes concession, there is no property value cap for a new home, which means the concession can apply to higher-valued homes.
This concession is only available for the residential portion of the land. You will still be obligated to pay transfer duty on any additional land that doesn't form part of the residence or isn’t used for residential purposes, such as commercial or farming land.
Consider another example: You purchase your first home – a brand new townhouse – for $850,000 under a contract signed in June 2025. Rather than paying stamp duty of approximately $31,275, the First Home (New Home) Concession reduces your liability to zero, saving you the entire amount.
Eligibility requirements for First Home Concessions
To be eligible for either the established or new home stamp duty concessions, you must:
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Be a first home buyer. That means you have never owned or held an interest in another residence anywhere in the world.
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Be at least 18 years old.
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Move into the property and live there on a daily basis within one year of settlement.
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Have never claimed the first home vacant land concession.
Companies are not eligible for either of these concessions. However, certain rules apply if you are purchasing as part of a trust.
Home concessions for non-first-time buyers in Queensland
If you’ve already owned a property, you won’t qualify for any of the First Home Concessions. However, Queensland is one of the only states that offers transfer duty concessions for all owner-occupiers under the Home Concession.
The Home Concession applies a reduced stamp duty rate to the first $350,000 of the property's value. This can save you up to $7,175, regardless of whether you've owned property previously.
The Home Concession doesn't have an upper value limit like the First Home Concession. Whether you're purchasing a $400,000 unit or a $1.5 million house, you'll receive the concessional rate on the first $350,000 of value, with standard transfer duty rates applying to the remaining amount.
To be eligible, you must intend to live in the property as your main residence. You're required to move into the home within 12 months of settlement and continue living there. Changes introduced in September 2024 now allow you to rent out part of your property (such as a room or granny flat) while still retaining the concession, provided you continue to live there yourself.
How to apply for stamp duty concessions in Queensland
Applying for stamp duty concessions or exemptions in Queensland is relatively straightforward, though it requires careful attention to detail. Here's a step-by-step guide to navigate the process:
Step 1: Determine your eligibility. Confirm which concession (First Home, Home, or Vacant Land) you are eligible for based on your circumstances and the property's intended use. An experienced mortgage broker will be able to help.
Step 2: Gather your documentation. You'll need your contract of sale, proof of identity, evidence of residency intentions and property valuations if required. First home buyers should also prepare evidence that they've never previously owned property in Australia.
Step 3: Complete the relevant forms. Download and complete Form D2.1 (Claim a home, first home or first home transfer duty concession) from the Queensland Revenue Office website. You'll also need to complete Form 1 (Transfer) and Form 24 from Titles Queensland.
Step 4: Submit your application. Your application is usually lodged with the Queensland Revenue Office by your conveyancer or solicitor at the time when transfer duty is paid. This will include all completed forms, along with your contract of sale and supporting documents.
Common mistakes and things to consider when applying for stamp duty exemptions in QLD
Several common pitfalls can jeopardise your stamp duty concession or delay your application. Being aware of these helps you avoid costly mistakes.
Exceeding property value thresholds
Make sure you understand which concession thresholds apply to your situation. A property purchased for $710,000 will receive a partial First Home Concession, whilst one purchased for $810,000 won't qualify at all.
Failing to move in within the required timeframe
This can trigger a reassessment. You must occupy the property as your principal place of residence within 12 months of settlement. If circumstances change and you can't move in, notify the Queensland Revenue Office immediately.
Using the property as an investment
The property must be used as your primary residence. If you rent out the entire property within the first year, you'll lose the concession and face a duty reassessment, along with potential interest and penalties.
Selling too quickly
Selling the property before moving in, or within 12 months of moving in, means you haven't met the concession requirements and will need to repay the stamp duty benefit.
Underestimating other costs
Be aware that stamp duty exemptions don't cover other property purchase costs. You'll still need to budget for legal fees, building and pest inspections, conveyancing costs and mortgage registration fees. Understanding your complete financial picture helps you plan effectively for your property purchase.
How AXTON Finance can help you navigate stamp duty exemptions in Queensland
At AXTON Finance, we understand that Queensland's stamp duty rules can seem complex. Our experienced team of mortgage brokers specialises in helping clients just like you understand and maximise available property incentives.
Whether you're looking to upgrade your family home, purchase an investment property in Queensland or explore interstate opportunities, we'll guide you through every step of the process.
We work closely with Queensland property experts and legal professionals who can ensure you claim every concession you're entitled to. We'll help you understand which exemptions apply to your specific situation, assist with the necessary paperwork and keep you informed about Queensland's latest government incentives.
As experienced home loan brokers, we don't just help you understand stamp duty savings – we will also help you secure a mortgage option to suit your financial circumstances and long-term goals.
If you’re weighing up whether stamp duty concessions or exemptions could apply to your Queensland purchase, AXTON Finance can help. We’ll walk you through your borrowing options, the costs you need to factor in and the lending strategy that supports your next move. Call 03 9939 7576, email getabetterrate@axtonfinance.com.au or get in touch today.