First home buyers in Queensland can celebrate – starting May 2025, they won’t pay any stamp duty in Queensland. This exemption covers new homes they plan to live in and vacant land for building, whatever the property’s price tag.
Queensland’s stamp duty concessions had a $500,000 cap before, with benefits decreasing up to $550,000. The Queensland Government has raised this threshold to $700,000. Eligible homebuyers who plan to live in their property can save up to $7,175 through existing concessions.
Note that buyers must pay stamp duty within 30 days after settlement or face penalties. The property’s dutiable value and the buyer’s eligibility for concessions determine the final amount. This piece explains the stamp duty payments QLD residents need to make, available exemptions, and ways to budget for this most important homebuying cost.
What Is Stamp Duty and Why Do You Pay It?
Property buyers must factor stamp duty, a major tax, into their budget. This government tax applies to property transactions throughout Australia, with rules that vary by state and territory.
Stamp duty vs transfer duty
Both terms mean the same tax. Queensland’s official name changed from “stamp duty” to “transfer duty,” though people use both terms interchangeably. This name change reflects the development of this tax, which once required physical stamps on documents to show payment. The basic purpose and how it works remain similar, despite the new name.
What transactions does it apply to
Transfer duty covers many transactions beyond regular property purchases. The Queensland Government charges this tax on:
- Buying residential properties, investment properties, or vacant land
- Transferring property without payment (such as gifts to family members)
- Creating trusts over land
- Signing contracts to buy or sell property
- Business assets and transfers
The tax also applies to motor vehicle registrations, insurance policies, leases, mortgages, and hire purchase agreements. The duty calculation uses the property’s market value rather than the paid amount, even when no money changes hands.
Buyers must pay this tax – not sellers. The payment clock starts ticking once the contract is signed, and you need to pay within 30 days. Missing this deadline can lead to penalties and stop the transfer process.
How it funds public services
Stamp duty is a vital funding source for state governments. The money ends up going back to communities through essential services. This tax supports public infrastructure like healthcare facilities, schools, transport networks, and roads. It also helps pay for police, justice, and emergency services.
The tax does more than generate revenue. It helps regulate the market by discouraging property speculation and keeps market dynamics balanced. Some people push for changes to this system, but it remains a key part of state government funding across Australia.
How Much Does Stamp Duty Cost in Queensland?
Queensland’s stamp duty (officially called transfer duty) uses a tiered system where rates go up with property value. The amount you pay depends on the rate structure and calculation methods.
Standard stamp duty rates in QLD
Queensland’s transfer duty has a progressive structure with five distinct price brackets. Here are the figures in accordance with the Queensland Revenue Office.
- Properties valued at AUD 5,000 or less: No duty payable
- AUD 5,001 to AUD 75,000: AUD 1.50 for each AUD 100 (or part thereof) over AUD 5,000
- AUD 75,001 to AUD 540,000: AUD 1,050 plus AUD 3.50 for each AUD 100 (or part thereof) over AUD 75,000
- AUD 540,001 to AUD 1,000,000: AUD 17,325 plus AUD 4.50 for each AUD 100 (or part thereof) over AUD 540,000
- More than AUD 1,000,000: AUD 38,025 plus AUD 5.75 for each AUD 100 (or part thereof) over AUD 1,000,000.
Buyers from overseas must pay an extra 8% surcharge when buying residential property.
How much stamp duty QLD buyers pay by property value
The property’s dutiable value determines the stamp duty amount. This value is usually the higher amount between market value and purchase price. Property transfers without payment, such as gifts, still need duty payment based on market value.
Stamp duty on house QLD: examples for owner-occupiers vs investors
Owner-occupiers can get concessions if they qualify, but investors pay full rates. The home concession applies to the first AUD 350,000 of a property’s value, and standard rates apply after that. Eligible buyers can save up to AUD 7,175.
First home buyers can get extra concessions on properties under AUD 700,000, while investors always pay standard rates.
Who Gets a Discount or Exemption?
Queensland offers stamp duty reductions or complete exemptions to many buyer groups. These benefits make property ownership more available to specific categories of buyers.
First home buyer concessions
First-time homebuyers can save significantly on stamp duty when they buy properties. Properties below a certain threshold attract no duty at all. Starting May 1, 2025, buyers of brand-new homes won’t pay any duty, whatever the property’s value.
Home concession for owner-occupiers
Previous property owners might qualify for the home concession. The benefit applies to a portion of the property’s value and can help you save on stamp duty. Buyers need to move into the property within a year after settlement to keep their eligibility.
Vacant land concession
Buyers can save up to AUD 17,350 when they purchase vacant land to build their first home. The rules require buyers to build and live in their home within two years of settlement. Starting May 2025, first home buyers won’t pay any duty on residential vacant land.
Foreign buyer surcharge
Foreign buyers must pay an extra 8% duty on residential property deals. The exemption applies only to certain foreign retirees who buy a principal residence after January 1, 2023.
Other exemptions (spouse transfers, deceased estates)
Spouses don’t pay duty on gifted property transfers. Property transfers from deceased estates are duty-free when distributed as per a will or intestacy rules. Divorce or relationship breakdowns might also qualify for exemptions under certain conditions.
How to Estimate and Budget for Stamp Duty
Buyers can avoid financial surprises by calculating stamp duty costs before purchasing property. Good planning will give a smooth process and help avoid getting pricey penalties.
Using a stamp duty calculator
Queensland’s Revenue Office has an online transfer duty estimator that helps you calculate what you might need to pay. This tool works for single transactions where all buyers are Australian residents. Most lenders and financial institutions have these calculators on their websites. You’ll find these tools factor in your property value, buyer status, and any concessions you might be eligible for.
When stamp duty is due
Queensland law requires stamp duty payment within 30 days after you sign the contract or the transaction becomes liable. Your property settlement usually includes the stamp duty payment. You need stamped documents before settlement because most financial institutions require them at this stage.
Including stamp duty in your home loan
You typically need to pay stamp duty upfront, separate from your mortgage. Notwithstanding that, some lenders let you borrow extra to cover this cost, based on your deposit size and borrowing capacity. A smart financial move is to set aside about 5% of your property’s value for stamp duty and other upfront costs.
Penalties for late payment
Late payments trigger unpaid tax interest (UTI) that adds up daily until you pay in full. The UTI rate sits at 11.78% for the 2025 – 26 financial year. The Queensland Revenue Office can take legal action against all parties involved to recover the payment.
Conclusion
Anyone entering the Queensland property market needs to understand stamp duty. New changes will substantially benefit first-time buyers, with a complete exemption for new homes and vacant land purchases starting May 2025. Smart timing of your property purchase could save you a lot of money.
Queensland has shown its commitment to making homes more available by raising the concession threshold to $700,000.
Property value, buyer status, and intended use affect stamp duty calculations. Smart homeowners should use online calculators to get accurate estimates of their obligations before buying. You must complete payments within 30 days of settlement to avoid daily interest charges that can get pricey.
Foreign buyers need to include an extra 8% surcharge in their Queensland property budget. Some situations might qualify for complete exemptions, like transfers between spouses or those from deceased estates under specific conditions.
Queensland’s transfer duty system means you’ll pay higher rates for more expensive properties. Buyers should look into all possible concessions based on their situation instead of accepting standard rates.
Setting aside about 5% of your property’s value for stamp duty is a vital step in your home-buying trip. This approach will help you avoid financial stress during settlement. A clear understanding of Queensland’s stamp duty costs will give you confidence to make smart real estate decisions.
If you have more questions regarding stamp duty or building your next home, please don’t hesitate to reach out to our friendly team here at Guardian Master Builders for additional support.
FAQs
Q1. How much stamp duty would I pay on a $764,495 house in Queensland?
For a property valued at $764,495 in Queensland, you would typically pay around $24,349 in stamp duty. However, this amount may be reduced if you’re eligible for concessions, such as the home concession for owner-occupiers.
Q2. Is stamp duty included in the 20% deposit for a home purchase?
No, stamp duty is not typically included in the 20% deposit. It’s an additional upfront cost that you need to budget for separately from your deposit. Some lenders may allow you to borrow extra to cover stamp duty, depending on your circumstances.
Q3. Are there any exemptions from stamp duty in Queensland?
Yes, there are several exemptions and concessions available. First home buyers may be eligible for a full exemption depending on the property and their circumstances. From May 1st 2025, first home buyers will pay no stamp duty on new homes or vacant land, regardless of the property’s value.
Q4. When do I need to pay stamp duty in Queensland?
In Queensland, stamp duty must be paid within 30 days of settlement. It’s crucial to pay on time to avoid penalties and daily interest charges. Most property settlements include the stamp duty payment as part of the process.
Q5. How can I estimate my stamp duty costs in advance?
You can use online stamp duty calculators provided by the Queensland Revenue Office or various financial institutions. These tools take into account factors like property value, buyer status, and applicable concessions to give you an estimate of your stamp duty obligations.
