Your Guide to Stamp Duty in Queensland

June 17, 2024

The Queensland Government is helping pave the way for aspiring homeowners by changing the first homeowner concession on stamp duty, elevating it from $500,000 to $700,000. There will also be concessions for homes valued at up to $800,000. At the same time, the changes apply for first home vacant land, which has increased from $250,000 to $350,00, with the concession phasing out up to values of $500,000. This change is a great step in supporting aspiring buyers facing affordability challenges to get a foothold on the property ladder.

Your Guide to Stamp Duty in Queensland

Taxes are an unavoidable part of life for every Australian, but they don’t just apply to your income. In fact, when buying or building a home, you’ll be liable to pay certain property taxes such as stamp duty. But why is stamp duty an added expense, and are there ways you could avoid paying it? Let’s explore in this complete guide to stamp duty.

What is stamp duty?

When buying a home in Australia, stamp duty is an additional fee on top of the cost of your property (among various other expenses like conveyancing, pest inspections, etc.). Essentially, it’s a property tax that covers certain costs such as changing the home’s title and ownership details. Because the amount can be quite high, it’s important to understand how much stamp duty you’ll pay on your home. Moreover, every state works differently with stamp duty – so you may end up paying more stamp duty in one state than you would in another, even if the property’s purchase price is identical.

The good news is there are certain exemptions for stamp duty, especially if you plan to build or buy your first new home.

You could be exempt from stamp duty

Because the cost of stamp duty can be substantial, especially for first home buyers who’ve spent years saving up for a deposit, the government does provide exemptions depending on your eligibility and which state you live in:

  • First home owners: The First Home Owner Grant is a national initiative managed by individual states and territories. In some states, first home owners may find they don’t pay any stamp duty at all (depending on their eligibility), while in other parts of Australia stamp duty is always payable. In Queensland, the first homeowner concession threshold on stamp duty is $700,000, with the concession now phasing out up to the value of $800,000. However, if you get access to the first homeowner’s grant and it covers the cost of stamp duty, technically you won’t pay any stamp duty out of your own pocket.
  • The home’s value: Most states have a ‘threshold’ amount relating to home prices, so purchases underneath that threshold may mean you pay a much lower stamp duty rate. Be sure to check with your state authority to see if your property is eligible.
  • Certain demographics: Both health card holders and pensioners may be liable for a reduced stamp duty tax or an exemption depending on their circumstances. You’ll need to contact the State Revenue Office in your applicable state to find out more.

What is the difference in stamp duty for vacant land and a home?

Across Australia, there is a difference in stamp duty when buying vacant land as opposed to an established home. Vacant land will have less stamp duty compared to buying an established home as you only pay stamp duty on the value of the land, not your new home. This provides owners with some extra support when building their new home.

Buying a property off-the-plan, whether it involves buying and building on vacant land or buying within a larger complex yet to be built, can come with concessions on stamp duty. Because you are building the home and not technically making a transfer, you will pay less stamp duty, making all the difference when trying to save money. Eligibility for this concession will be specific to each state.

If you’re looking to buy or build a new home in an AVID development in Queensland then you may be eligible for a first home owner’s grant.

Queensland: Stamp duty in Queensland must be paid within 30 days of settlement. Rates for properties:

  • First homeowners’ concession on stamp duty up to $700,000, with concession then phasing out up to values of $800,000.
  • First home vacant land concession on stamp duty up to $350,000, with concession then phasing out up to values of $500,000.
  • Over $75,000 and up to $540,000 = $1,050 plus $3.50 for every $100 over $75,000.
  • Over $540,000 and up to $1 million = $17,325 plus $4.50 for every $100 over $540,000.
  • Over $1 million = $38,025 plus $5.75 for every $100 over $1 million.

You can use a stamp duty calculator for a more specific amount. It will take into account your state or territory, the property’s value, the property type (primary residence of investment home), and whether or not you are a first home buyer.

At AVID, we create places where people love to belong. To find out more about our developments around the country and how you can invest in the home of your dreams, contact us today.

This information in the article is for general information purposes only. It is not intended as financial or legal advice and should not be construed or relied on as such. Before making any commitment of a financial or legal nature you should seek advice from a solicitor and registered financial adviser. No content contained within this article should be construed or relied upon as providing recommendations in relation to any financial product. For full terms and conditions visit https://avid.com.au/terms-and-conditions/#villaworld-homes-terms-and-conditions

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