Brokers celebrate Qld stamp duty waiver for FHBs

The Queensland state government passed the Revenue Legislation Amendment Bill 2024 on 20 February and will become law upon royal assent.

From 1 May 2025, first home buyers who enter into a contract to purchase a new home to live in (or vacant land on which to build a home to live in) will be able to apply for a full transfer duty concession.

The promise to abolish transfer duty completely for first home buyers was first made by the Crisafulli government ahead of the 2024 state election. It has now delivered on this pledge to provide full transfer duty relief to eligible first home owners purchasing a new home to live in or land on which they will build a home to live in.

This relief will be available irrespective of the value of the property.

This will mean that first home buyers who, either alone or with other first home buyers, buy or build a new home to live in, will ordinarily not pay any transfer duty.

However, transfer duty will still apply in certain situations, such as when a first home buyer purchases a property with someone who is not a first home buyer, with transfer duty payable on the other person’s share at either concessional or standard rates. Additionally, transfer duty at standard rates will apply to portions of land containing extra residences or non-residential uses, while concessional rates may apply to co-buyers using the property as their home.

Existing transfer duty concessions up to $800,000 for first home owners and home owners generally will continue to be available.

As such, depending on the value, first home buyers purchasing existing homes will continue to pay either transfer duty at concessional rates or no transfer duty at all. Eligible first home buyers could reportedly save $9,096 on a median-priced house-and-land package in Queensland with the new exemption.

The transfer duty relief will be available to eligible dutiable transactions entered into on or after 1 May 2025.

It is expected that the move could deliver an additional 800 new homes and support thousands of Queenslanders to get into their first home.

The change marks one of the ways the state government (under Premier David Crisafulli) is hoping to boost its home ownership rate, given it is the lowest of any state across Australia.

Crisafulli took to social media platform X after the bill passed, saying: “We’ve axed a tax to get more Queenslanders into the property market and to ease the cost of living.

“If you build or buy a new home for your first home, you won’t pay a single cent of stamp duty under the LNP.

“We promised to do this before the election and we are delivering it for Queenslanders.”

Brokers applaud new laws

Luke Ashby, a finance specialist and mortgage broker who specialises in first home buyers at Brisbane-based brokerage Emerge Finance, described the bill as “brilliant news”.

“I think it is definitely a step in the right direction that will certainly help more first home buyers to enter the market,” he said.

“We saw an uplift in inquiry for those looking to build coming through after the first home owners grant announcement when it went from $15,000 to $30,000 back in November 2023 and I suspect we will see the same increase in inquiry off the back of these new changes for first home buyers.

“It is becoming more and more difficult for first home buyers to get into the market so we definitely [need] to help them take advantage of as many incentives as we can (given they are only first home buyers once).

“When you combine the first home guarantee, $30,000 first home owners grant and now the stamp duty waiver – it will mean first home buyers are forking out even less of a deposit which is fantastic because saving for a deposit is definitely one of the biggest challenges first home buyers face today.”

Ashby said that reforms could go further to aid those looking to buy property: “In a perfect world, I’d love to see the First Home Guarantee Scheme price cap lifted (at least until $900,000 to match New South Wales) so it can give buyers even more opportunities when buying existing property too.”

Scott Beattie, a business development manager and mortgage broker at Queensland-based brokerage Cube Central, agreed that the regulatory change would give first home buyers a boost.

“I think almost anything to assist first home buyers to enter the market is a great help – often borrowers have good income and service the debt, however, it’s the entry costs (typically at least 5 per cent of the purchase and costs) that is the barrier to entry, especially if the proposed borrowers are renting,” he said.

“Under this change from 1 May, this will save first home buyers around $3,000 or so, significantly more if their purchase price is more than $800,000 and it’s a new build or home.”

FHBs given subletting relief

The bill also confirmed that since 6 December 2024, recipients of the home concessions have been able to rent part of their property during the one-year occupation period and keep the full benefit of that relief. Previously, Queenslanders who received stamp duty concessions and grants were legally unable to sublet their property during their first year of ownership.

According to Queensland Treasury modelling at the time, the change could encompass around 20,000 Queenslanders a year.

[Related: Qld government lifts rental restrictions for first home buyers]