An unfortunate truth about purchasing property is that you will encounter several more expenses than the listed price. One cost in particular often leaves new homeowners scratching their heads—stamp duty.
Also known as transfer duty, stamp duty can add thousands of dollars to your overall outlay, and without a clear explanation, it can make you wonder, ‘What am I really paying for?’. Moreover, if you fail to understand stamp duty in QLD, you might even miss your opportunity for an exemption, saving a considerable amount in your property purchase.
What is Stamp Duty in QLD?
The Queensland government imposes stamp duty on property transactions as a form of taxation. Initially, stamp duty was meant to cover administrative costs associated with property transfers, but today, it lingers as a hefty part of the property purchasing process to contribute towards the state’s revenue.
I should note that the buyer, not the seller, is liable to pay stamp duty.
How Does the Government Calculate Stamp Duty in QLD?
The government calculates stamp duty in QLD based on three main factors which are:
- Type of property i.e. brand new, existing home or vacant land
- Purchase price
- Purpose i.e. for a first home, next home or investment.
Investment Property
If you purchase a property to rent out or to use as a commercial premises in QLD, the stamp duty will be:
- Up to $5,000: Nil
- $5,001 to $75,000: $1.50 for each $100 or part of $100 over $5,000
- $75,001 to $540,000: $1,050 plus $3.50 for each $100 or part of $100 over $75,000
- $540,001 to $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
Primary Residence
Your stamp duty liability is lower if you plan to live in the property as your principal place of residence:
- Up to $350,000: $1.00 for each $100 or part of $100
- $350,001 to $540,000: $3,500 plus $3.50 for every $100 or part of $100 over $350,000
- $540,001 to $1,000,000: $10,150 plus $4.50 for every $100 or part of $100 over $540,000
- Over $1,000,000: $30,850 plus $5.75 for every $100 or part of $100 over $1,000,000
To qualify for this concession, you must meet specific criteria, such as living in the property as your principal place of residence within one year of settlement and not selling or leasing any part of the property before moving in.
First Home Buyer Stamp Duty Concessions Available in QLD
First-home buyers groaning at yet another hurdle to overcome on their homeownership journey can breathe a sigh of relief as some encouraging concessions are available (if you meet the criteria).
As part of the 2024 / 2025 State Budget, concession thresholds for first-home buyers are rising to new heights:
First Home Concession
First-home buyers interested in properties valued under $700,000 can receive the full additional discount. First home buyers Spending from $7000,000 to $800,000 can get a partial discount. Eligibility criteria include:
- Never having claimed the first home or first home vacant land concessions in the past
- Never owning a residence in Australia or overseas
- Moving into the property within one year of settlement
First Home Vacant Land Concession
First-home buyers purchasing vacant land to build their homes can also benefit from the first-home vacant land concession. Land valued under $350,000 will be eligible for the full concession and land valued from $350,000 to $500,000 will receive a partial concession. You need to move in within two years of settlement.
When is Stamp Duty Due?
In Queensland, you must pay stamp duty within 30 days of signing the contract or when your contract becomes unconditional. Since most contracts settle within the 30-day period, most new property owners will pay stamp duty at settlement. If the settlement occurs after this timeframe, you must still pay the duty by the deadline to avoid incurring additional interest on the unpaid amount.
I recommend you do some proper financial planning upfront, as it will give you enough time to prepare for all these coming expenses. When you do, always budget for stamp duty in addition to other costs associated with purchasing a property, such as your deposit, mortgage, building inspection, and moving expenses.
Foreign Buyers and Stamp Duty
Foreign buyers, including those who are not Australian citizens or permanent residents, must pay an additional foreign acquirer duty (AFAD) of 7%. They can still qualify for other concessions, but must also meet the eligibility requirements. The added stamp duty is designed to level the playing field in QLD and ensure foreign buyers contribute their fair share to the state’s revenue.
How Does the Current Market View Stamp Duty?
Stamp Duty, or transfer duty as it is now called, is a controversial tax as it’s such a large cost of buying a home that adds further pressure to those looking to break into the property market, especially amid a cost-of-living crisis.
The concessions the QLD government has in place for home buyers, can be really beneficial saving them thousands of dollars.
However the main criticism of QLD’s stamp duty concessions for first home buyers are that until 2024, the threshold or maximum amount a buyer could spend was as low as $500,000 to get the full rebate. These thresholds were introduced a long time ago before property prices throughout most of QLD boomed so in reality hardly any first home buyers were able to take advantage of it.
It was extremely unlikely for anyone living in Brisbane or any of the main regional centers like the Gold Coast or Sunshine Coast to be able to find a property for under $500,000.
Thankfully now in 2025, first home buyers can spend up to $800,000 on their first home or up to $500,000 on vacant land which has opened up the concession to considerably more buyers. I think these thresholds are still very low and far from being in alignment with QLD property prices so stamp duty still remain a burdensome barrier to entry for first home buyers in QLD..
Find More Avenues to Homeownership in QLD
If you are struggling with purchasing property in 2025, you may be interested in exploring more on the First Home Owners Grant and our First Home Guarantee Guide.
As a mortgage broker, I can advise you on your eligibility and maximise the use of these schemes to either qualify for concessions on stamp duty in QLD, or find methods to potentially lower its impact. Book a free consultation with me to learn more.
The information contained within this page is general in nature. It serves as a guide only and does not take into account your personal financial needs. Before you act on this information you should seek independent legal and financial advice.
