Stamp Duty Exemptions QLD

Q: How to Avoid Stamp Duty QLD?

The only ways to avoid Stamp Duty in QLD are when transfering to/from your partner or through a Government exemption: Home Concession, First Home Concession or First Home Land Concession.

Q: How do I apply for Stamp Duty exemptions?

Your Solicitor/Conveyancer should prepare the paperwork for the relevant Stamp Duty concessions.

There are currently a number of Stamp Duty Exemptions available in Queensland, including:

Different Stamp Duty Exemptions available in QLD:
First Home Concession: Stamp Duty waiver/reducer for First Home Buyers.
Home Concession: general Stamp Duty reducer when purchasing an owner-occupied property.
First Home Vacant land Concession: Stamp Duty waiver/reducer for First Home Buyers purchase vacant land.
When transferring the property to a spouse (in some cases).

Here's a link to a Stamp Duty Calculator - this will automatically take into account any relevant stamp duty exemptions. If you have any further questions or want to speak to a Mortgage Broker, please contact us.

First Home Concession: Reduction/exemption for First Home Buyers

First Home Buyers will pay $0 Stamp Duty for properties under $500k. For properties over $550k, they will pay full Stamp Duty less any other concessions (Home Concession, for example).

To summarise the First Home Concession:
Available to first home buyers only. Must not have purchased previously in Australir or overseas.
Must be owner-occupied purchase & live in within 12 months.
Full Stamp Duty waiver under $500k. Partial Stamp Duty waiver between $500k & $550k. No exemption over $550k.
Must move in and hold the property for 1 year (partial exemption if held for less than 1 year).

Home Concession: Reduction for Owner-Occupied

The Stamp Duty Home Concession will apply whenever purchasing an owner-occupied property in Australia. It reduces the Stamp Duty payable by up to $7,175, depending on the purchase price. This applies only to the first $350k purchase price. This means for any property purchased for over $350k, the Stamp Duty for owner-occupied is $7,175 less than if it were an investment.

To summarise the Home Concession:
First Home Concession: Stamp Duty waiver/reducer for First Home Buyers.
Must be owner-occupied purchase & live in within 12 months.
Maximum saving of up to $7,175 - peak savings hit at $350k purchase.
Must move in and hold the property for 1 year (partial exemption if held for less than 1 year).
Does not need to be first home buyer.

First Home Vacant land Concession: Reduction for First Home Buyers purchasing Vacant Land

The Vacant Land concession is an alternative to the First Home Concession for appliants purchasing vacant land & building. It provides a great option to buy a house & land package (<$250k), claim a 100% stamp duty waiver & then construct and claim the First Home Owner's Grant and/or Government Guarantee Scheme.

To summarise the First Home Vacant Land Concession:
Available to first home buyers only. Must not have purchased previously in Australir or overseas.
Must be owner-occupied purchase & live in within 12 months.
Full Stamp Duty waiver under $250k. Partial Stamp Duty waiver between $250k & $400k. No exemption over $400k. Based on land purchase price.
Build & move in within 2 years.
Only build one home on the land.

How do I apply for the Stamp Duty Exemptions?

Whilst you can apply for the exemptions yourself, it's much more common for your Solicitor/Conveyancer to do it on your behalf. When purchasing a property, your Solicitor should prepare all documents for the applicable waivers/exemptions and provide to you to finalise & sign. They will submit on your behalf and ensure you don't overpay.

Transferring a Property into a Spouse's Name

When transferring a property into a spouse's name, you can seek a full exemption in some cases:

When you can avoid paying Stamp Duty & transfer to your partner:
Must be adding your spouse to the Title.
Post transfer: the Title should 50/50 as Joint Tenants or Tenants in Common.
This means you cannot: transfer from husband to wife (i.e. remove husband); and,
You cannot redistribute the Title for tax puposes (i.e. 99%/1%).
You can claim an exemption in a divorce/separation.

A Conveyancer can assist you in the process of transferring the Title into joint names - the usual cost is around $500 - $1,000 for the transaction (assuming no Stamp Duty is payable).

How to Avoid Stamp Duty QLD

The only ways to avoid Stamp Duty in Queensland are when transfering to your partner or through a Government exemption: Home Concession, First Home Concession or First Home Land Concession.

If one Applicant is a First Home Buyer, and the other isn't, what then?

As a general rule, you can claim the concession as a relative percentage. So if you're (first home buyer) buying 50/50 with your partner (not a first home buyer), you can claim 50% of the First Home Concession. If you're buying 25/25/25/25 with your partner & her parents, you could claim 25% of the First Home Concession (if they have all owned a home before).

What if the property already has Tenants?

If the concession you're applying for requires you to purchase a home to live in, but it's already got tenants living in it (with a lease built into the contract) - you must stop receiving rental monies within 6 months of settlement & move in within 12 months.