Changes to Transfer Duty Concessions and Exemptions in Queensland

With the cost of living being a key talking point over the last few years, changes to Queensland’s Duty framework have been gradually implemented by the Queensland Government.

New Exemption for Retirement Visas

From 1 January 2023, specified foreign retirees may be exempt from paying Additional Foreign Acquirer Duty (AFAD) when purchasing their principal place of residence in Queensland.

For the purposes of this Exemption, specified foreign retirees are individuals who:

• Hold a retirement visa (subclass 405 or 410); or
• Applied for a parent visa (subclass 103) or contributory parent visa (subclass 143) on or after 8 May 2018 and their application is pending, and their last substantive visa held before applying is a retirement visa (subclass 405 or 410).

Changes to Duty Concessions

Starting in 2024, the Queensland Government announced proposed changes to implement Transfer Duty relief policy for homebuyers.

From 9 June 2024, the threshold for claiming duty concessions changed as set out below.

Purchasers should note that the changes apply to contracts entered into on or after 9 June 2024, unless:

• The contract replaces an agreement entered into prior to 9 June 2024;
• The contract formed on the exercise of an option entered into prior to 9 June 2024; or
• An arrangement was made prior to 9 June 2024, the main purpose of which was to defer the transfer or agreement until after 9 June 2024.

1. Increase to duty thresholds for First Home Concession 

The First Home Concession now applies to homes valued under $800,000.00.

Where the property purchased is valued under $700,000.00, no transfer duty is payable. Reduced transfer duty rates apply for properties valued up to $800,000.00.

2. Increase to duty threshold for First Home Vacant Land Concession

The First Home Vacant Land Concession now applies to vacant land valued under $500,000.00.

Where the vacant land purchased is valued under $350,000.00, no transfer duty is payable. Reduced transfer duty rates apply for properties valued up to $500,000.00.

Changes to Disposal Rules

Previously in Queensland, purchasers claiming a Transfer Duty concession were not able to dispose of any part of their property before complying with the relevant residence requirements. This restriction covered a broad range of activities, and all types of leasing arrangements, including short-term and holiday letting.

From 6 December 2024, purchasers may now be able to retain the benefits of the First Home Vacant Land Concession, Home Concession, or First Home Concession if they lease, rent, or otherwise grant exclusive possession of part of the property after they move in.

Note that purchasers will need to comply with all other requirements for the relevant concession.

Upcoming Changes

On 12 December 2024, the Revenue Legislation Amendment Bill 2024 was introduced into Parliament. This Bill if passed will amend the Duties Act 2001 (Qld) to provide that from 1 May 2025, first homeowners purchasing a new home or vacant land to build a new home will not pay Transfer Duty, provided they meet the eligibility requirements.

Transfer Duty concessions and exemptions can be complex and difficult to navigate.

The above is general information only, and it is important that advice be sought about your specific circumstances. If you require advice or assistance with navigating Queensland Transfer Duty concessions and exemptions, contact the experienced team at Miller Sockhill Lawyers on 07 5444 4750.