Stamp Duty Exemption QLD: What Am I Eligible For?

Stamp duty (commonly referred to in Queensland as transfer duty) is a significant aspect of property transactions across Australia, impacting both buyers and sellers. In Queensland (QLD), there are exemptions available, providing relief to certain categories of buyers. In this blog post, we will delve into the intricacies of the stamp duty exemption QLD and explore its implications for property transactions.

What is stamp duty, and how is it calculated in QLD?

In Queensland, stamp duty is commonly referred to as transfer duty. Transfer duty applies when you buy or transfer property. It’s charged on dutiable transactions – such as signing a contract to buy or sell a house or purchase business assets.

When you purchase a home, you need to have it transferred into your name before you can legally own it. Unfortunately, transfer duty is often expensive and is one of the hidden costs of buying a house.

There isn’t one set price for stamp duty – it is calculated based on the property you purchase. Some factors can impact how much stamp duty you pay. These factors include:

• Only a part of a property is transferred (e.g. 50 per cent)
• A home concession applies to the transaction but includes land not for residential purposes
• Several people acquire an interest in property, and some pay the concessional rate of duty while others pay the full rate (mixed and multiple claims)
• Multiple transactions are part of the same arrangement, which can be assessed as if they were one transaction.
• An exemption applies, which could result in you paying no duty at all.

Interested to know how much stamp duty you might pay? Take a look at our free QLD stamp duty calculator.

Why do we pay stamp duty? 

Buying a house costs so much money already. You might wonder why you have to pay extra on top (and it’s a fair question!). Without going into too much detail, the government uses the revenue generated from stamp duty to support essential services and infrastructure, such as healthcare, education, and transport. It helps to regulate the property market by discouraging speculative investments, thus maintaining a balance in the market dynamics.

Stamp duty exemption QLD explained:

A stamp duty exemption QLD refers to a government-granted relief on the payment of stamp duty in the state of Queensland, Australia. Stamp duty is a tax applied to various transactions, including property transfers, based on the property’s value.

In practical terms, a stamp duty exemption in QLD means that the buyer or transferee may not have to pay the full or a portion of the stamp duty amount, subject to specific conditions or circumstances. These exemptions are typically implemented to support particular groups, encourage specific property transactions, or facilitate entry into the property market, especially for first-time homebuyers.

For instance, the widely known First Home Concession in QLD provides eligible first-time homebuyers with a partial or complete exemption from stamp duty on their initial home purchase.

It’s essential to note that the conditions, eligibility criteria, and available exemptions may vary. To get accurate and up-to-date information, individuals should refer to the latest guidelines provided by the Queensland Government or seek professional advice to understand the specifics of any current stamp duty exemptions.

Buyers stamp duty concessions and exemptions available for property buyers in QLD

For stamp duty, a concession is a lower rate of duty than what would apply if you were buying non-residential land or an investment property. In some instances, you wouldn’t pay any stamp duty, for example, if the concession amount is equal to or greater than the duty you would otherwise be paying. 

There are several stamp duty exemptions available in Queensland. These include: 

Home concession

This concession is for people buying their next home. Eligible applicants can receive a transfer duty concession, saving up to $7,175 on the total price of their transfer duty. This concession differs from the first home concession as you can use it even after you’ve purchased your first home. 

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.

The eligibility criteria for the home concession include: 

• You must be legally acquiring the property as an individual.
• You must move into and live in the house within one year of the settlement.
• You must not sell, transfer, lease or grant exclusive possession of all or part of the property before moving in. 

First home concession

The first home concession is for those purchasing their first home. You can claim a first home concession on stamp duty if you meet specific criteria. In Queensland, the first home concession only applies to a home valued under $500,000, saving you up to $15,925. The home concession may still be available to eligible properties over this amount.  

While you don’t have to be an Australian citizen or permanent resident to claim a concession, you do need to meet select criteria. These criteria include:

• You must be legally acquiring the property as an individual. 
• You must not have claimed the first home vacant land concession before. 
• You must never have held an interest in a residence anywhere in Australia or overseas. 
• You must be at least 18 years old. 
• You must move into and live in the house within one year of the settlement.
• You must not sell, transfer, lease or grant exclusive possession of all or part of the property before moving in. 
• You must be paying market value if the residence is valued between $500,001 and $549,999.

First home vacant land concession

Lastly, the first home vacant land concession is for claiming a concession when purchasing vacant land on which to build your first property. The first home vacant land concession only applies to vacant land valued under $400,000 and can save you up to $7,175.

To be eligible for the first home vacant land concession when you buy or acquire land, you must meet the following eligibility criteria: 

• You must be legally acquiring the property as an individual. 
• You must not have claimed the first home vacant land concession before.  
• You must never have held an interest in a residence anywhere in Australia or overseas. 
• You must be at least 18 years old. 
• You must be paying market value if the vacant land is valued between $320,001 and $399,999. 
• You must move into and live in the house within two years of settlement.
• You must only build one home on the land. 
• You must be sure there is no building, or part of a building, on the land when you acquire it.
• You must not sell, transfer, lease or grant exclusive possession of all or part of the property before moving in. 

How can an Inovayt mortgage broker help you with a stamp duty exemption in QLD?

At Inovayt, our team are experts at finding you the perfect home loan and searching for any available concessions you might be eligible for. If you’re curious about the stamp duty exemptions in QLD you might qualify for, get in touch with our expert mortgage broker Brisbane team today.