Buying your first home is exciting — but in Queensland, transfer duty (or stamp duty) can quickly take the shine off. It’s a government tax on property transactions that often runs into tens of thousands of dollars. The good news? From 1 May 2025, eligible first home buyers of new homes or vacant land may pay no transfer duty at all.
This change sounds simple, but the rules are anything but. Between concessions, exemptions, and strict eligibility criteria, even a small paperwork mistake or delay could cost you the savings you were counting on. Worse still, you might not find out until long after settlement, when an unexpected tax bill lands in your letterbox.
What is Transfer Duty Anwyay?
The term stamp duty comes from the old practice of physically stamping documents to show the tax had been paid. Today, it’s officially called transfer duty. This is a tax the Queensland Government charges whenever property changes hands, including land, homes, or other dutiable assets. It applies whether you pay cash, take out a mortgage, or even receive the property as a gift.
Transfer duty is calculated on either the property’s market value or the price you agree to pay, whichever is higher. Even transfers between family members can attract duty, because the tax is based on the property’s value, not just the money exchanged.
So, When Does Transfer Duty Apply?
Transfer duty becomes payable on various property transactions:
- Buying a home – whether it’s an established house, townhouse, or a brand-new build.
- Vacant land purchases – such as blocks of land where you intend to build your first home.
- Investment properties – subject to the standard duty rates, as residential concessions generally don’t apply.
- Family transfers – even if the property is gifted between relatives, duty is usually calculated on market value.
You must pay transfer duty within 30 days from when the liability arises. For most purchases, this means 30 days from contract signing, not settlement date.
2025 Transfer Duty Rates in Queensland
Queensland uses a tiered system where rates increase with property values:
| Property Value Range | Transfer Duty Rate / Payable Formula |
| Up to $5,000 | Nil |
| $5,001 – $75,000 | $1.50 for each $100 (or part of $100) over $5,000 |
| $75,001 – $540,000 | $1,050 plus $3.50 for each $100 (or part) over $75,000 |
| $540,001 – $1,000,000 | $17,325 plus $4.50 for each $100 (or part) over $540,000 |
| Over $1,000,000 | $38,025 plus $5.75 for each $100 (or part) over $1,000,000 |
To illustrate, see the sample calculation below:
Example: Buying a Home for $900,000
Bracket: $540,001 – $1,000,000
Formula: $17,325 + $4.50 for every $100 (or part) over $540,000
- Amount over $540,000 = $900,000 – $540,000 = $360,000
- Divide by $100 = 3,600
- Multiply by $4.50 = $16,200
- Add base $17,325 = $33,525
✅ Transfer duty payable = $33,525
However, various concessions often reduce or eliminate these standard rates for eligible buyers.
Major Shift: No Stamp Duty for First Home Buyers
The Queensland Government’s May 2025 reforms have brought the most significant transfer duty changes in decades. Eligible first home buyers of new homes and vacant land now pay no transfer duty.
In real terms, first home buyers can save about $9,096 on a median-priced house-and-land package in Queensland. At the higher end of the market, the benefit is even larger, with savings of up to $24,525. To put this into perspective, the REIQ reported Queensland’s quarterly median house price at $812,000 in June 2025 — highlighting just how significant these savings can be when weighed against current property prices.
First Home Concession (New Build) Eligibility
The full transfer duty exemption eliminates duty entirely, but eligibility requirements are strict:
- Age: You must be at least 18 years old.
- First-time status: You must never have owned a residential property anywhere in Australia or overseas, and never claimed the first home vacant land concession.
- Individual purchase: The property must be acquired in your personal name, not through a company or trust.
- New home requirement: The property must be a new home or substantially renovated home that has not been previously occupied.
- Contract timing: Your purchase contract must be dated 1 May 2025 or later.
- Residence obligations: You must move in with your personal belongings within 12 months of settlement and live there as your principal residence for at least 12 consecutive months.
- Property value requirement: If the property is valued between $700,001 and $799,999, you must pay market value to qualify for the concession.
Vacant Land Concessions
If you’re buying vacant land to build your first home, you usually won’t pay transfer duty on the residential part of the land. If the whole property is for residential use, no duty is payable at all. If part of the land is non-residential, you’ll only pay duty on that portion.
To qualify, you need to:
- Buy the land in your own name (not through a company or trust, except in very specific trustee cases).
- Never have claimed a first home vacant land concession before.
- Build only one home on the land and move in within two years.
- Make the home your main residence.
- Ensure the land is empty when you buy it (no existing buildings).
- Pay the land’s market value when required, depending on the purchase price and the date of the contract.
Established Home Purchases
If you’re buying an established home, the first home concession can help reduce or even eliminate transfer duty, provided the property value falls within the eligible range:
- Homes valued up to $700,000 – no transfer duty payable.
- Homes valued between $700,001 and $799,999 – reduced transfer duty applies.
- Homes valued at $800,000 or more – the concession does not apply.
This concession can save first home buyers up to $24,525, making a significant difference to upfront costs.
Additional Transfer Duty Concessions
Home Concession for All Buyers
If you’re not a first home buyer, you can still claim the Home Concession when buying your main residence. It applies to the first $350,000 of the property’s value, which could save you up to $7,175 in transfer duty.
Requirements include:
- Moving into the property within 12 months of settlement
- Living there as your daily residence
- Not leasing, selling, or granting exclusive possession before moving in
- Continuing residence for at least 12 consecutive months after moving in
Foreign Buyer Obligations
Foreign persons acquiring residential property in Queensland face an additional 8% transfer duty surcharge on top of standard rates. This Additional Foreign Acquirer Duty (AFAD) applies even when other concessions are claimed.
Why Expert Legal Help Matters
Transfer duty might look straightforward on paper, but Queensland’s rules are filled with exceptions and potential pitfalls. Professional guidance is essential, especially in these situations:
Mixed Buyer Scenarios
When couples or joint buyers are involved and only one qualifies as a first-home buyer, transfer duty calculations can become complicated. Each person’s share must be calculated separately, and partial concessions may apply. Using a transfer duty calculator can give a rough estimate, but expert advice can prevent unexpected issues.
Documentation and Timing
Concessions rely on precise paperwork submitted correctly and on time. For new homes, vendor statements must confirm the property has never been occupied. Missing or incorrect documentation can invalidate your entire concession claim, costing thousands in lost savings.
Ongoing Compliance
First home concessions come with obligations that extend beyond settlement. For example, if you rent out the property within a year of moving in, you must notify the Queensland Revenue Office to allow a duty reassessment. Failure to comply can trigger penalties and unexpected duty bills.
Valuation Disputes
The tax is calculated on the value of the property that is subject to duty. If the Queensland Revenue Office disagrees with your purchase price, disputes can arise. Legal expertise is often needed to resolve these disagreements effectively.
Common Transfer Duty Mistakes
- Assuming automatic eligibility: Many buyers wrongly assume they qualify. Any previous ownership of residential property, anywhere in the world, disqualifies first home concessions.
- Incomplete documentation: Forms like 1 and supporting paperwork must be submitted with your contract. Missing items can delay settlement or void your claim.
- Misunderstanding residence obligations: Leasing or extended absences may impact concession eligibility and trigger reassessments.
- Payment issues: Transfer duty is due within 30 days of the liability arising. Conveyancing Lawyers like ours can handle calculation, lodgement, and payment. Late payment attracts daily penalties and interest.
Looking Ahead
Queensland’s transfer duty rules keep changing to balance affordability with revenue. First home buyer reforms make it easier to get into your first home, but eligibility is strict and ongoing obligations apply. Knowing both the savings and responsibilities is essential.
Helping You Protect Your Property Investment
Transfer duty is just one part of buying property in Queensland. Errors in calculations, documentation, or compliance can derail purchases or create costly problems later. Given the complexity of current concession rules, professional guidance is invaluable.
At PD Law, we guide clients through Queensland’s evolving transfer duty rules every day. Whether you’re a first home buyer seeking to claim concessions, an investor calculating acquisition costs, or navigating complex mixed-buyer scenarios, our experienced Residential Conveyancing Lawyers provide practical, tailored advice. We help ensure your property purchase runs smoothly from contract to settlement and beyond. Don’t just take our word for it—see what our satisfied clients have to say!
Ready to start? Talk to one of our Cannonvale Lawyers or Bowen Lawyers today.
