If I sign a contract for a brand-new apartment today, do I have to pay stamp duty if it costs more than $800,000?

It depends on the date you sign the contract. For new homes purchased as a first home on or after 1 May 2025, there is no value cap, meaning you pay zero transfer duty regardless of the price. However, if you signed between 9 June 2024 and 30 April 2025, the full exemption only applies up to $700,000, and no concession is available for properties over $800,000.

When exactly do I need to pay the transfer duty for an off-the-plan property purchase?

While the duty is technically triggered when the contract is signed, the Queensland Revenue Office allows for a delay in payment for off-the-plan transactions. You generally do not have to pay until the property settlement occurs, which is often two or three years after signing. This allows you to keep your funds in a high-interest account while the building is being constructed.

Can I rent out a spare bedroom in my first home to help with the mortgage repayments?

Yes, under rules introduced in September 2024, you are permitted to rent out a room or a granny flat as long as you continue to live in the property as your principal place of residence. You must still move into the home within one year of settlement and remain there for at least twelve months. You cannot, however, lease the entire property to someone else during that first year without losing your concession.

What happens if my builder goes bust or there are major construction delays on my new home?

To keep the vacant land concession, you must build your home and move in within two years of the land settlement date. If industry volatility or builder issues cause you to miss this deadline, the Queensland Revenue Office may demand the full duty be paid back with interest. It is vital to monitor your construction timeline closely to ensure you meet these strict residency requirements.

I have owned a property previously; am I still eligible for any duty reductions in Queensland?

Although you will not qualify for the first home buyer concession, you can still apply for the 'Home Concession' if you intend to live in the property as your primary residence. This concession provides a reduced rate of duty compared to the standard investor rate, regardless of whether you have owned property before. For a $1,000,000 home, this can result in a saving of approximately $7,175.

QLD First Home Buyer Stamp Duty Concessions Off-Plan Guide

The New Reality of Queensland Transfer Duty

Queensland property buyers often face a steep tax bill known as transfer duty. While many people still call it stamp duty, this state tax can add $15,000 to $40,000 to a purchase price in Brisbane, the Gold Coast, or the Sunshine Coast. A series of legislative changes from June 2024 onward have shifted the goalposts, offering significant relief for those seeking first home buyer stamp duty concessions off-plan. The June 2024 State Budget raised the full exemption threshold for first home buyers from $500,000 to $700,000. Then, from 1 May 2025, the Queensland Government removed the value cap entirely for first home buyers purchasing a new home, making off-the-plan purchases even more attractive.

For anyone buying off-the-plan, understanding these rules is not just about saving money; it is about knowing exactly how much borrowing power you have. When you buy a property that has not been built yet, the off-the-plan property settlement process can take two or three years. The duty you pay is determined by the laws in place at the time of the dutiable transaction, which is usually the date you sign the contract. If the law changes during your construction period, you need to know which set of rules applies to your specific contract date.

First Home Buyer Concession Thresholds: Two Regimes

The Queensland Revenue Office (QRO) administers the Duties Act 2001 (Qld). The concession that applies to your purchase depends on when you signed your contract.

Contracts signed on or after 1 May 2025 (new homes)

If you are buying a new home (one that has not been previously occupied or sold as a place of residence, or a substantially renovated home) as your first home, the first home (new home) concession applies. Under this concession:

There is no value cap. You pay zero transfer duty on the residential land component regardless of the purchase price.
Transfer duty may still apply to any additional non-residential land included in the transaction.

This is the concession most relevant to off-the-plan buyers signing contracts today. It represents a full exemption with no price threshold.

Contracts signed between 9 June 2024 and 30 April 2025, or purchases of existing homes

For first home buyers purchasing an existing (second-hand) home, or those who signed contracts before 1 May 2025, the following thresholds apply:

Up to $700,000: You pay zero transfer duty. This is a full exemption.
$700,001 to $800,000: You receive a partial concession, with the duty amount gradually increasing.
Over $800,000: No first home concession applies. You will pay the standard owner-occupier rate.

To put this in perspective, a first home buyer purchasing a $695,000 existing home will save up to $24,525 compared to an investor. This cash stays in your pocket rather than going to the state government. According to government reports on tax reform, these concessions are a primary tool for improving entry-level market access.

How Off-the-Plan Settlement Impacts Your Duty

The off-the-plan property settlement process differs from established home sales. In a standard sale, duty is paid at or before settlement, which is usually 30 to 60 days after the contract is signed. With off-the-plan, the "dutiable transaction" occurs when the contract is signed, but because the title does not yet exist, the QRO allows for a delay in payment.

In Queensland, duty is generally payable within 30 days of settlement. For off-the-plan transactions, this means payment is deferred until close to the settlement date, which may be two or three years after the contract is signed. This is a significant benefit for your cash flow. You can hold that money in a high-interest account for the duration of the build. It is wise to check the pros and cons of this delay, as it affects your final mortgage calculations.

The Owner-Occupier Home Concession

If you have owned property before, you do not qualify for the first home buyer rate. However, you can still claim the "Home Concession." This applies to anyone buying a property as their principal place of residence. The home concession applies a reduced rate of duty across a concessional rate schedule. For a $1,000,000 home, the saving compared to the standard transfer duty rate is approximately $7,175. While smaller than the first home buyer concession, it remains a meaningful reduction for families upgrading or downsizing into new developments.

First Home Vacant Land Concession

Some buyers choose to buy the land first and then enter into a separate build contract. This is common in new estates in areas like Coomera or Logan.

Contracts signed on or after 1 May 2025

A full transfer duty concession is available for first home buyers purchasing vacant land to build their first home on. There is no value cap on the vacant land.

Contracts signed between 9 June 2024 and 30 April 2025

The following thresholds apply:

Up to $350,000: Full exemption ($0 duty).
$350,001 to $500,000: Partial concession.
Over $500,000: No first home land concession.

A trap for the unwary: to claim this concession, you must build a home on the land and move in within two years of the land settlement. If the builder goes bust or there are major delays, you might fail to meet this requirement. In such cases, the QRO can demand the full duty be paid back, plus interest. This has become a more frequent issue due to recent construction industry volatility.

The One-Year Residency Requirement

The QRO is strict about who lives in the property. To keep your concession, you must move into the property within one year of settlement and occupy it as your principal place of residence. You must not sell, transfer, or lease the entire property within one year of moving in.

However, since 10 September 2024, you are permitted to rent out part of the property (such as a spare room or granny flat) while you continue to live there. This "rent-a-room" measure was introduced administratively from 10 September 2024 and legislated from 6 December 2024. You do not need to notify the QRO of a partial lease arrangement that starts on or after 10 September 2024, provided you continue to reside in the property.

If you move out entirely, or lease the entire property within the first year after moving in, the QRO will issue a reassessment. You will have to pay back some or all of the duty you saved.

The QRO uses data matching to find people who break these rules. They check bond lodgements with the Residential Tenancies Authority (RTA), electoral roll changes, and utility bills. If they find you have claimed first home buyer stamp duty concessions off-plan but rented the entire property out immediately, the penalties can be heavy. Buyers may be required to pay the original duty plus unpaid tax interest and penalty tax for failing to disclose a change in circumstances.

Foreign Acquirer Duty (AFAD)

If you are not an Australian citizen or permanent resident, you may be hit with the Additional Foreign Acquirer Duty (AFAD). As of 2026, this is an extra 8% on top of the standard transfer duty. For a $1,000,000 apartment, a foreign buyer will pay roughly $30,000 in standard duty plus $80,000 in AFAD, totalling $110,000. This is a significant cost that must be factored into any investment strategy. Some exemptions exist for specified foreign retirees on certain visa subclasses, but these are technical and require specific legal advice. Note that you do not need to be an Australian citizen or permanent resident to claim the first home concession itself, but AFAD may still apply if you are a foreign person.

Case Study: The $700,000 Brisbane Apartment

Consider a first home buyer purchasing an off-the-plan apartment in Chermside for $700,000, with a contract signed after 1 May 2025.

Standard Duty (Investor): approximately $24,525
Home Concession (Owner-Occupier, not first home buyer): approximately $17,350
First Home (New Home) Concession: $0

By qualifying as a first home buyer purchasing a new home, the purchaser saves approximately $24,525 compared to an investor. Because the first home (new home) concession has no value cap, this same $0 result applies regardless of the purchase price. This amount is often the difference between a 5% deposit and a 10% deposit, which can help avoid Lenders Mortgage Insurance (LMI). Research shows that policy impacts on financing are a major driver of market activity for younger Australians.

Common Mistakes in Off-the-Plan Duty Claims

Many buyers fail to prepare for the duty payment because they assume it is included in their mortgage. Most banks do not lend for the duty amount; they expect you to have this cash ready at settlement. If you are buying off-the-plan, you might have signed the contract two years ago. If you have not saved the duty amount by the time the building is finished, you could face a breach of contract.

Another risk involves the "Sunset Clause." If a developer activates a sunset clause and terminates the contract, you are entitled to a refund of any duty paid. However, getting this refund from the QRO can take weeks of paperwork. Understanding when a buyer can terminate is a necessary part of managing your risk in these long-term projects.

Aggregating Dutiable Transactions

If you buy two units in the same development from the same seller, the QRO may "aggregate" them. This means they treat both units as one single transaction for duty purposes. Because duty is a progressive tax (the higher the price, the higher the percentage), aggregating two $500,000 units into one $1,000,000 transaction usually results in a much higher tax bill. This is a common trap for investors and families trying to buy neighbouring apartments for multi-generational living.

The Role of the Conveyancer in Duty Assessment

In Queensland, most law firms are "self-assessors." This means they use the QRO Online system to calculate and lodge duty documents. It is a fast process, but it requires absolute accuracy. The relevant forms include Form D2.1 (Claim for home or first home concession) and Form D2.7 (Claim for vacant land concession). Mistakes on these forms can lead to settlement delays. Choosing between a good conveyancer and a bad one often comes down to their attention to these tax details.

When you receive your "Duties Statement" from your lawyer, check it against the current QRO rates. Ensure the concession has been applied. If you are a first home buyer purchasing a new home under a contract signed after 1 May 2025, you should be paying $0 in transfer duty on the residential land component regardless of price.

Market Competition and Developer Pricing

The removal of the value cap for first home buyers purchasing new homes has reshaped the competitive landscape in Queensland. Developers no longer need to price their off-the-plan stock under $700,000 to capture the duty-free benefit. However, the $700,000/$800,000 thresholds still apply to existing home purchases, and those price brackets remain competitive in the established market. Comparing first home buyer statistics from other states shows that Queensland's concessions are now among the most generous in the country.

Final Checklist for Off-the-Plan Buyers

Before you sign an off-the-plan contract in Queensland, run through these points regarding your duty liability:

Confirm your status: Have you or your partner ever owned property in Australia or overseas? If yes, you are ineligible for the first home concession.
Identify the concession that applies: For contracts signed on or after 1 May 2025 for a new home, there is no value cap. For earlier contracts or existing homes, the $700,000/$800,000 thresholds apply.
Verify the residency plan: Can you commit to moving in within one year of settlement and occupying the property as your principal place of residence? You may rent out a room while living there, but you must not lease the entire property within the first year.
Budget for the payment: Even if you qualify for a full concession, ensure any remaining duty amount (for example, on non-residential land) is sitting in a liquid account before the expected settlement date.
Account for AFAD: If you are not a citizen or permanent resident, do you have the extra 8% ready?

The Queensland property market remains a strong choice for off-the-plan buyers, but the tax rules are rigid. By correctly applying for the first home buyer stamp duty concessions off-plan, you can secure a new home while keeping your upfront costs as low as possible. Always ensure your legal representative has specific experience in off-the-plan contracts, as the timing and lodgement requirements are far more complex than a standard house and land sale.