Are you a first home buyer in Queensland? If so, there’s good news! From 1 May 2025, first home buyers purchasing a new home or vacant land to build on can apply for a full transfer duty concession, reducing the duty to nil. Additionally, from 6 December 2024, recipients of the home concession will be allowed to rent out part of their property during the 1-year occupation period while still retaining the full benefit of the concession.
At Home+Co. Conveyancing, a division of Matthew James Isaac Lawyers, we’re here to help you navigate these changes and make the most of the concessions available. Here’s everything you need to know about the first home buyer concessions and how they can benefit you.
What Are the First Home Buyer Concessions?
The first home buyer concessions are designed to make homeownership more accessible by reducing or eliminating transfer (stamp) duty for eligible buyers.
Full Concession: From 1 May 2025, first home buyers purchasing a new home or vacant land to build on can apply for a full transfer duty concession, reducing the duty to nil.
Partial Concession: For homes valued between 700,001 and 700,001 and 799,999, a partial concession may still apply, saving you up to $24,525.
Renting Part of the Property: From 6 December 2024, first home buyers can rent out part of their property during the 1-year occupation period without losing the concession.
Eligibility Criteria
To qualify for the first home concession, you must meet the following criteria:
First-Time Buyer: You must not have previously claimed the first home vacant land concession or held an interest in another residence anywhere in Australia or overseas.
Age Requirement: You must be at least 18 years old.
Occupation Requirement: You must move into the property with your personal belongings and live there on a daily basis within 1 year of settlement.
Property Value: The home must be valued under $800,000 to qualify for the full concession.
Market Value Purchase: For homes valued between 700,001 and 700,001 and 799,999, you must pay market value to qualify for the partial concession.
Note: You do not need to be an Australian citizen or permanent resident to claim the concession, but additional foreign acquirer duty may apply if you are a foreign person.
Key Changes to the Concession Rules
Renting Part of the Property: From 6 December 2024, first home buyers can rent out part of their property during the 1-year occupation period without losing the concession. However, you cannot lease or rent out the entire property within the first year.
Selling or Transferring the Property:
Before Moving In: You cannot sell or transfer the property before moving in.
After Moving In: A partial concession may apply if you sell or transfer the property within 1 year of moving in.
Tips for First Home Buyers
Check Your Eligibility: Use the home concession eligibility tester to confirm your eligibility before applying.
Plan Your Move: Ensure you can move into the property within 1 year of settlement to meet the occupation requirement.
Consider Renting Out a Room: From 6 December 2024, you can rent out part of your property to help cover mortgage costs while still retaining the concession.
Seek Professional Advice: Conveyancing can be complex, especially with changing rules.
At Home+Co. Conveyancing, we can guide you through the process and ensure you meet all requirements!
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