Stamp duty, also known as transfer duty, is a tax everyone pays when buying a house. 

The State Government charges buyers a percentage of the property they’re buying and on average, people in Queensland pay tens of thousands of dollars in stamp duty each year.

Stamp duty is payable within 30 days of the property contract being entered into or when your contract becomes unconditional. It is usually paid at the same time as settlement.

If you’re looking to buy a home, you need to ensure you budget for stamp duty – that’s on top of your deposit, mortgage, building inspection, moving costs and other expenses.

However, for first home owners, there’s some good news.

As part of the 2024 State Budget, the first-home concession threshold has increased to $700,000 for houses and $350,000 for vacant land purchases. That means for houses priced under that price limit, you will not pay a cent in stamp duty if you are a first home buyer.

It’s part of a push to make it easier for young people to enter the property market, but you must ensure you meet the first home buyer criteria, including:

• The property must be legally acquired by the buyer
• The buyer must not have previously claimed a first home concession
• The buyer should not have an interest in any other residential property, such as an investment property
• The buyer must move into the property with their personal belongings within 12 months of settlement
• The buyer must be at least 18 years of age

It’s so important for buyers to be aware of the conditions required to maintain their concession eligibility. For instance, demolishing the home before occupying it, even if intending to build a new home, can result in losing the first home concession. 

For homes valued between $700,000 and $800,000, there are now also sliding scale concessions for stamp duty.

In more good news for first home buyers, the First Home Owner Grant offers up to $30,000 to those buying or building a new home. This grant can be combined with the new stamp duty concessions, providing even greater financial relief. 

Understanding the intricacies of stamp duty rates and recent state policy changes is vital for anyone looking to buy a home. If you’d like to know more about stamp duty, and how we can help you with your residential conveyancing, contact our team today.