Stamp Duty Exemption for New Builds QLD: How Transfer Duty Works for First Home Buyers

Queensland's stamp duty rules for first home buyers changed significantly on 1 May 2025. If you are buying a new home, you now pay $0 in transfer duty regardless of the purchase price. If you are buying an established home, you pay $0 up to $700,000, with a sliding scale up to $800,000. Understanding which category your purchase falls into is worth tens of thousands of dollars.

New builds: uncapped zero duty

For first home buyers purchasing a brand-new or substantially renovated dwelling with a contract signed on or after 1 May 2025, transfer duty is $0. There is no price ceiling. A first home buyer buying a new home for $900,000 pays the same transfer duty as one buying for $400,000 — nothing.

The same uncapped exemption applies to vacant residential land that you intend to build on. If your land is part of a larger block that includes non-residential land, duty is calculated on the whole property, then the residential portion is deducted, leaving a liability only on the non-residential component.

This is a substantial policy change. Before 1 May 2025, the new home exemption was capped at $550,000 with a sliding scale up to $800,000. The removal of the cap directly targets the house-and-land market where packages often fall in the $650,000–$850,000 range.

Established homes: zero up to $700,000, sliding scale to $800,000

First home buyers purchasing an existing residential property receive a full transfer duty exemption on purchases up to $700,000. On a $650,000 established home, the saving against standard rates is approximately $22,275.

For properties between $700,001 and $800,000, the concession phases out gradually:

At $800,000, the first home buyer concession disappears entirely and standard owner-occupier (home concession) rates apply.

What this means for the new build vs. established decision

The duty difference between new and established becomes material at prices above $700,000. An established home at $750,000 carries approximately $10,925 in duty for a first home buyer. The same price point in a new build carries nothing.

At $850,000, an established home carries the full home concession rate of approximately $24,600. A new home at $850,000 carries $0. That $24,600 difference is real money — it is roughly equivalent to 8 months of mortgage repayments on an $800,000 loan at current rates.

The uncapped new-home exemption also interacts with the $30,000 First Home Owner Grant. Both programs apply exclusively to new builds. A buyer who targets a new home under the $750,000 FHOG cap while using the First Home Guarantee (5% deposit, no LMI) can potentially access:

• $30,000 in cash via the FHOG
• $0 in transfer duty (saving ~$26,775 vs standard rates)
• LMI waived (saving approximately $15,000–$24,000 depending on deposit size)

That is over $60,000 in combined savings on a $750,000 purchase.

Personal eligibility requirements

To access either the new-home or established-home first home buyer concession, you must:

• Be purchasing the property as your principal place of residence
• Never previously have received a first home buyer duty concession in any Australian state or territory
• Be an individual (not a company or trust)
• Intend to move in within 12 months

The Queensland Revenue Office assesses dutiable value against either the purchase price or unencumbered market value, whichever is higher. If a property sells below market value (for example, between family members), the QRO will assess duty on the market value figure.

Transfer duty must be paid before Titles Queensland will register the transfer of ownership. In practice, your conveyancing solicitor calculates and manages this at settlement.

Foreign buyers pay extra

If any buyer on the title is a foreign person — including temporary visa holders — an Additional Foreign Acquirer Duty (AFAD) of 8% applies to the residential land portion attributable to that foreign buyer. New Zealand citizens holding a Subclass 444 visa are exempt from AFAD.

For a mixed purchase where one partner is Australian and one is on a temporary visa, the 8% surcharge applies only to the foreign partner's share of the property value. On a $700,000 property split 50/50, AFAD would apply to $350,000, adding $28,000 to the transaction cost.

The Queensland First Home Buyer Guide includes a complete cost worksheet covering transfer duty, registration fees, PEXA fees, and legal costs so you can calculate your actual upfront cash requirement before making an offer.

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