Transfer duty, formerly known as stamp duty, is a state government tax payable on most transactions related to property. It is calculated based on the purchase price of the property or the value of the property; whichever is higher.

For residential property, transfer duty is payable in the following circumstances:

1. Purchasing a home or an investment property;
2. Transferring a share of your property to another person, family, or friend; and
3. Creating a trust over land that you previously owned for children or other family members.

Transfer duty varies also depending on whether or not a concession or exemption is available to the purchaser or transferee.

What is the recent change made to the payment of transfer duty?

Under the Duties Act 2001, buyers of Queensland properties are now allowed to retain benefits of the stamp duty first home, home and first home vacant land concession from 6 December 2024 onwards, even if they are leasing part of the property and:

1. the leasing arrangement can be either short-term, long term or holiday-letting;
2. the leasing arrangement must be done after the buyer has already moved into the property;
3. the leasing arrangement can be done for multiple rooms; and
4. the leasing arrangement does not need to be formal and in writing

so long that buyers comply with the remainder of the eligibility requirements, which are outlined in our previous blog.

What if settlement for the purchase of my property occurred before 6 December 2024?

If your property purchase settled before 6 December 2024, and you have complied with all of the other eligibility requirements for the concessions, as long as you rent out part of the property after 6 December 2024, then you are still entitled to the concessions.

You must not lease or otherwise grant exclusive possession of part of the property (including a room) after moving in if the arrangement starts before 10 September 2024.

The Queensland Revenue Office will not reassess the home concessions on a disposal that occurred between 10 September and 5 December 2024 either, if this has been done already.

How do I know if I am allowed to rent out part of my property or if I am in breach of my eligibility requirements?

We can assist you in claiming these concessions, provide you with advice and we also provide in-house transfer duty lodgement. We have handled thousands of duty assessments over the years and can let you know where you stand.

If you have any questions regarding your eligibility requirements or how to claim your concession, please contact FC Lawyers.