During the rising home prices trend, the QLD government recently made a major decision on stamp duty. Now, more first-home buyers can buy their first-home with expanded concessions and exemptions under the stamp duty waiver QLD.
Stamp duty is the major expense buyers must pay for nearly every property purchase, whether commercial or residential. However, it often creates financial pressure on everyone’s budget, particularly on first-home buyers.
How Can a Stamp Duty Waiver for First Homebuyers Help?
A Stamp duty waiver at present is like a helping hand for first-homebuyers due to various reasons:
- Saving on upfront costs: Since stamp duty is a major upfront cost, getting relief from this will help in improving savings.
- Relief in rising property prices: The property prices are showing an upward trend in Queensland. Research revealed that median house prices rose quarterly to $810,000 (5.19%). At this time, stamp duty waivers can help first-home buyers find the best suburbs within their budget.
- Opportunities for better property investments: With the stamp duty waiver, first-homebuyers can access better property investments without draining their savings.
Recent Updates on Stamp Duty QLD (June 2024)
The Queensland government recently released new updates on stamp duty, according to which first-home buyers can avoid it completely. But they must meet the following eligibility criteria:
- They must not have owned any property previously in Australia.
- The home purchase value must fall within the given threshold of up to $700k.
- Plan to live in the property as their main home.
- They must move into that property within 12 months of settlement and live there continuously for 12 months.
- Their age must be 18 years or older.
- They should never have claimed any first-home grant or concession under any first-home government schemes.
So, how much relief will first-home buyers get now? Which calculation threshold will be followed by the government?
QLD Stamp Duty Calculation Threshold
The QLD government follows the general transfer duty rates below:
| Dutiable Home Value | Payable Stamp Duty |
| $0-$5000 | No stamp duty |
| $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 of $100) over $75,000 |
| $540,001-$1,000,000 | $17,325 plus $4.50 for each $100 (or part of $100) over $540,000 |
| Over $1,000,000 | $38,025 plus $5.75 for each $100 (or part of $100) over $1,000,000 |
That means if the dutiable home value ranges between $0 and $5000, the homebuyer doesn’t need to pay any stamp duty. However, as the range increases, the payable stamp duty will also increase.
Standard Home Concessional Rates
Meanwhile, for standard home concessions, the QLD government follows below the threshold:
| Property Purchase Value | Payable Stamp Duty |
| Up to $350,000 | $100 for each $100 (or part of $100) |
| $350,001-$540,000 | $3,500 plus $3.50 for each $100 (or part of $100) |
| $540,000-$1,000,000 | $10,150 plus $4.50 for each $100 (or part of $100) |
| Over $1,000,000 | $30,850 plus $5.75 for each $100 (or part of $100) |
First-Home Concession
But for first-home buyers, the QLD government has increased its concession from $500k to $700k from June 2024. Additionally, a partial concession rate has also been expected for homes valued up to $800k. The government currently employs below-slab rates for concessions as a result.
| Property Purchase Value | Concession |
| Up to $700,000 | Full exemption |
| $700,001-$709,999 | $17,350 |
| $710,000-$719,999 | $15,615 |
| $720,000-$729,999 | $13,880 |
| $730,000-$739,999 | $12,145 |
| $740,000-$749,999 | $10,410 |
| $750,000-$759,999 | $8,675 |
| $760,000-$769,999 | $6,940 |
| $770,000-$779,999 | $5,205 |
| $780,000-$789,999 | $3,470 |
| $790,000-$799,999 | $1,735 |
| Over $800,000 | No concession |
Thus, based on the above tables, first-home buyers can get a full exemption on home purchases valued up to $700k.
Stamp Duty Calculation Example
The following is an example of how the stamp duty waiver in QLD works for first-home buyers:
You have purchased a home valued at $695,000 in Queensland as your first home.
Applicable home-concessional rate is $540,000-1,000,000, according to which the payable stamp duty will be calculated as follows:
$10,150 plus $4.50 for each $100
Stamp duty for first $540,000 = $10,150
$4.50 for each 100 above $540,000 = $4.50 x 1550
= $6,975
= $10,150 + $6,975 = $17,125
Now, since the purchase value of the home lies in the first-home concession rate of up to $700k, the stamp duty will be fully exempted.
First-Home Vacant Land Concession
The Queensland government also considers the following slabs for the first-home vacant land concession:
| Dutiable First-Home Vacant Land Value | Concession |
| Up to $350,000 | Full exemption |
| $350,001-$359,999 | $10,675 |
| $360,001-$369,999 | $9,965 |
| $370,001-$379,999 | $9,255 |
| $380,000-$389,999 | $8,545 |
| $390,000-$399,999 | $7,835 |
| $400,000-$409,999 | $7,125 |
| $410,000-$419,999 | $6,415 |
| $420,000-429,999 | $5,705 |
| $430,000-$439,999 | $4,995 |
| $440,000-$449,999 | $4,285 |
| $450,000-$459,999 | $3,575 |
| $460,000-$460,999 | $2,865 |
| $470,000-$479,999 | $2,155 |
| $480,000-$489,999 | $1,445 |
| $490,000-$499,999 | $735 |
| Over $500,000 | No concession |
Therefore, if a first-home buyer purchases vacant land of up to $350,000, he/she will be eligible for a stamp duty waiver in Queensland. So, how do you apply for that?
Process to Apply for Stamp Duty Waiver QLD
You can follow the steps below to apply for a stamp duty waiver in QLD:
Confirm Eligibility Criteria
Firstly, as discussed in the above segment of recent updates on stamp duty QLD, confirm your eligibility criteria. Additionally, first homes must ensure that the purchased value falls within the given criteria only.
Complete The Required Forms
After confirming the eligibility criteria, prepare the following documents:
- Form D2.1
- Form 1 Transfer and Form 24
- Identity Details Annexure (required if any party to the transaction is a non-Australian citizen or resident)
Submit Your Application
File for your first-home stamp duty concession/waiver by submitting your application along with your contract of sale and other related documents. Then the Queensland government will review your assessment. Also, make sure all information is accurate to avoid delays.
Wait for Approval
Once you submit your application, wait for the final approval. If approved, you will receive confirmation of the concession and the adjusted duty amount.
Fulfil Ongoing Obligations
After claiming the concession, you must:
- Move into your home within 12 months of settlement.
- Live in the home as your primary residence for at least 12 months.
- Before moving in, don’t sell, lease, or grant possession of the property to anyone.
Many are unsure if they can apply for both the stamp duty waiver and concession. What’s the difference between them?
Stamp Duty Waiver Vs Concession QLD
Both of these terms often sound similar, but they differ from each other in multiple factors:
| Factor | Stamp Duty Waiver | Stamp Duty Concession |
| Concept | Full exemption from stamp duty | Reduced stamp duty rate |
| Applicability | For new homes or vacant land intended for primary residence. | All homes and vacant lands. |
| Property value limit | Up to $700k for a home and up to $350k for vacant land. | Beyond $700k for a home, and $350k for a vacant land |
| Savings | 100% of stamp duty | Partial reduction based on property value |
Careful Budget Consideration
A QLD stamp duty waiver can save you from paying stamp duty through exemptions and concessions. However, if you don’t qualify for it, you need to bear the stamp duty expense. Therefore, it is essential to have a carefully planned budget. Additionally, involve reliable mortgage brokers in your homebuying journey. They will help you step-by-step to apply for stamp duty exemptions and concessions therein.
Conclusion
Earlier, buying a first home seemed to be very difficult due to unavoidable stamp duty. However, with the recent update to the QLD stamp duty waiver, first homebuyers can get relief from the stamp duty. Stamp duty is fully exempt for home purchases up to $700,000 and vacant land purchases up to $350,000.
But first-homebuyers must confirm eligibility, complete forms, submit applications, and meet ongoing requirements to apply for the exemption. Meanwhile, they also need to be prepared with an effective budget to deal with potential eligibility uncertainties.
For more information on the stamp duty waiver QLD, contact us or book a discussion call at 1300 GET LOAN, 0456 456 267.
Frequently Asked Questions
You might want to know the answers to the following questions:
1. How to avoid stamp duty in QLD?
First-home buyers in QLD can avoid stamp duty by purchasing homes under $700k or vacant land under $350k if eligible.
2. Is there a home exemption for stamp duty in QLD?
Yes, Queensland offers a home exemption for stamp duty, given that first homebuyers confirm the eligibility criteria.
3. How is QLD stamp duty calculated?
Stamp duty in Queensland is calculated by applying a sliding scale rate to the property’s dutiable value, increasing as the price rises.
4. Can I use the stamp duty exemption if I’ve owned an investment property?
No, you can’t get the stamp duty exemption in QLD if you’ve ever owned an investment or residential property before.
