For eligible first home buyers looking to purchase their first property in Queensland, you may be able to claim the First Home Owner Grant and the First Home Concession for transfer (stamp) duty.
What Is the First Home Concession?
An initiative by the Queensland Government, the First Home Concessions is introduced to assist eligible first-time home buyers purchasing a home to live in.
Effective 9 June 2024, the Queensland government introduced the new first home concessions measures to make purchasing a first home more affordable by increasing transfer duty concessions.
Queensland Transfer (Stamp) Duty
In Queensland, transfer duty, previously known as stamp duty, is a tax on dutiable transactions such as:
- a transfer of dutiable property
- an agreement for the transfer of dutiable property
- a partnership acquisition
- the creation or termination of a trust of dutiable property
- a trust acquisition or surrender
In particular, transfer duty applies whenever you sell, buy or transfer property — such as land or rights to land. Dutiable transactions may include:
- signing a contract to buy or sell a home
- giving a half-share of a property you own to your spouse as a gift
- giving someone access across your property (an easement)
- creating a trust over land that you previously owned in your own right for your children or family members
Eligibility Criteria for First Home Concessions
To be eligible for a First Home Concession in Queensland, you must:
- be legally acquiring the property as an individual;
- have never claimed the First Home – Vacant Land Concession;
- have never held an interest in another residence anywhere in Australia or the world;
- be at least 18 years of age;
- move into the property with your personal belongings and live there on a daily basis within one year of settlement – this time cannot be extended; and
- be paying market value if the residence is valued between $700,001 and $799,999.
What Requirements Must I Meet after Claiming the First Home Concession
After claiming the first home concessions, there are certain requirements in order to keep it.
Selling or Transferring the Property
Before you move in – You are not allowed to sell or transfer all or part of the property before moving in.
After you move in – A partial concession (reassessment of transfer duty payable) may apply if you sell or transfer all or part the property within 1 year after you move in.
Leasing, Renting or Granting Exclusive Possession of the Property
Before you move in – You are not able to lease, rent or otherwise grant exclusive possession of all or part of the property before you move in.
After you move in – You are not allowed to lease, rent or otherwise grant exclusive possession of all of the property within 1 year after you move into the property. However, you are allowed 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. If the lease arrangement starts before 10 September 2024, you may lose the concession.
Transfer Duty Payable Queensland (with effect from 9 June 2024)
Eligible First Home Concession
| For home valued up to $700,000 | No transfer duty payable |
| For homes valued at $700,001 – $799,999 | Partial concession on transfer duty payable |
To calculate exactly how much duty is payable, you could use the Transfer Duty Estimator available on the Queensland Revenue Office website.
Additional Foreign Acquirer Duty (AFAD) Queensland
Additional Foreign Acquirer Duty (AFAD) is an additional duty on top of regular transfer duties for foreign buyers of residential land.
For foreign buyers eligible to claim the first home concessions, AFAD may still be payable.
Under AFAD, foreign person is considered as:
- foreign individual
- foreign corporation
- trustee of a foreign trust
With effect from 9 June 2024, the new measures are:
- higher Additional Foreign Acquirer Duty (AFAD) rate – 8% (up from 7%)
- increased land tax surcharge – 3% (up from 2%)
Common Questions About the First Home Concession
- Do I need to be an Australian Citizen or Permanent Resident (PR) to claim for first home concession?
- No. You can claim the concession as a foreigner, provided you meet the eligibility criteria.
Additional foreign buyer duty may apply.
- I am buying the property with my partner, and my partner is not eligible for first home concession. Can we still claim for partial first home concession?
- Yes. Provided one party qualify, the eligible party can claim a first home concession on their interest or share, whether or not the other party also qualifies for the first home concession.
- I bought a property with tenants on lease. Must I evict them immediately?
- No. The existing tenants can stay until their lease expires or within 6 months of settlement date, whichever is earlier, for you to stay eligible for the concession.
- I bought a property that I intend to demolish and reconstruct. Can I still claim first home concession?
- No. You will not be eligible to claim first home concession if you demolish the property without first living there. However, if you bought the property, lived there for a period, making it your principal residence before demolishing, you are still eligible for first home concession.
Ready To Proceed with Your First Home Purchase in Queensland?
At HTW Legal, we understand the complexities of property law and the importance of clear communications for property transactions. Our experienced property conveyancing team specialises in providing tailored legal solutions, ensuring your investments align with the latest regulations.
- Help you understand your eligibility, prepare the forms and contracts required as a First Home Buyer
- Conduct thorough due diligence before you commit to your first home purchase
- Keep you updated on regulatory changes that could affect your first home purchase process
📞 Contact HTW Legal Group today for a consultation.
