The Queensland government recently passed the Revenue Legislation Amendment Bill, announcing that from May 1, 2025, first-time homebuyers will be fully exempt from stamp duty on the purchase or construction of new residential properties (including houses, units, and house and land purchases), with no price cap. This move is expected to ease the financial burden on buyers entering the market and is expected to benefit approximately 3,000 buyers annually. Based on Brisbane's latest median house price of £1,977,000, this represents a stamp duty savings of approximately £1,298,150!
The new bill also relaxes rental restrictions for first-time homebuyers, allowing buyers to rent out rooms within the first year and still enjoy stamp duty concessions, further improving property affordability.
Details of existing Queensland stamp duty policy
According to Queensland's current stamp duty standards, the purchase of residential properties is subject to stamp duty (or transfer duty) calculated based on the property value. The taxable amounts are as follows:
| Taxable amount | Applicable stamp duty |
|---|---|
| $ Below 5,000 | exemptions |
| $5,000 – $75,000 | For every $100 exceeding $5,000, $1.50 will be levied |
| $75,000 – $540,000 | $1,050 + $3.50 for every $100 over $75,000 |
| $540,000 – $1,000,000 | $17,325 + $4.50 for every $100 over $540,000 |
| $1,000,000 and above | $38,025 + $5.75 for every $100 over $1,000,000 |
In the past, the stamp duty exemption for first home buyers purchasing any residential property (including existing homes) was $700,000 (full exemption).$800,000The new policy removes the price cap and allows full exemption for all purchases of newly built homes, regardless of the price.
How do I know if I'm eligible?
Buyers who meet the following criteria can apply for the new stamp duty exemption:
- First-time homebuyers(Never owned residential property in Australia or overseas)
- Buying a new home or vacant land(For self-use)
- Self-residence requirements:
- Buying a Newly Built Home:Must move in and live there for at least 6 months within 1 year
- Buying vacant land:Construction must be completed within 2 years, and the applicant must move in within 1 year and live there for at least 6 months.
- Be a Queensland resident at the time of purchase
- Foreign buyers are required to pay an additional 8% Foreign Buyer Surcharge
⚠️ Notice: Buyers may need to pay back stamp duty or face penalties if they breach residency requirements, such as renting out the entire property or delaying moving in.
New Building Purchase Process Guide
Brisbane buyers can take advantage of the new policy by following these steps:
1. Choose the right property
- Confirm purchaseNew homes or vacant land, and review the location, property prices and builder background.
- NoticeConstruction Contract Terms, ensuring compliance with government requirements.
2. Sign the sales contract
- Reviewed by a lawyerSales Contract, ensure that the terms are fair and reasonable, and avoid hidden fees or unfavorable terms.
3. Apply for stamp duty exemption
- An application is lodged with the Queensland Revenue Office (QRO) by a solicitor to ensure the exemption conditions are met.
- If you are eligible, you can apply forFirst Home Owner Grant (FHOG) $30,000(Applicable to new buildings with a price of $ below 750,000).
4. Complete the transaction and transfer
- The lawyer needs to submit stamp duty related forms to QRO (such asD2.2form) to ensure the transaction is correct.
- After the transaction is settled, the buyer will need to complete the property registration.
5. Comply with residency requirements
- Move into the property within the stipulated time and prepareElectricity bills, lease documents, etc.As proof in case of future inspection by QRO.
Market response and future development
The real estate industry has mixed reactions to the new policy. Some experts believe that although the measures can reduce the burden on buyers, the supply of new houses in Queensland is insufficient, and the current completion rate and building permits for new homes are lower than the historical average, which may affect the effectiveness of the policy.
Antonia Mercorella, CEO of the Real Estate Institute of Queensland (REIQ), suggested that the government should further expand policies, such as providing stamp duty exemptions for buyers over 55 years old to encourage home changes and release the supply of large-sized homes; and extend the discounts to buyers who renovate old buildings to reduce the pressure of renovation costs.
The Opposition also supports the policy, but Shadow Treasurer Shannon Fentiman pointed out that the benefits are skewed towards high-income buyers: "High-income buyers may get more benefits, for example, buying a $2 million house may get six times the tax relief as buying a median-priced property in Bundaberg."
Tips for buying new buildings and land for building: Avoid risks and ensure compliance
Pay attention to the terms and conditions and risks of handover when buying and selling pre-sale properties
The market demand for new buildings and land-based housing varies, so first-time homebuyers should choose carefully.off-the-plan) can reduce the burden of construction supervision, but it's important to pay attention to the delivery timeline, construction quality, and contract terms, such as area changes, compensation for construction delays, and cancellation mechanisms. Some developers may deliver properties below standard, so buyers should request specific delivery details and consult a lawyer to review the contract to ensure fair terms.
Potential risks and planning restrictions when buying land for house construction
On the other hand, although buying land to build a house offers design flexibility, it also involves land zoning planning (zoningIssues such as construction permits and construction progress may affect eligibility for stamp duty exemptions if the property is not completed and occupied within the specified timeframe. Furthermore, construction costs may rise due to market fluctuations, and construction delays may result in additional expenses. Buyers should ensure that the site meets building requirements and sign a clear contract with the builder to mitigate potential risks.
Buyer's agent helps ensure a secure transaction
Whether buying a property off the plan or buying land to build a house, buyers should consider hiring a buyer's agent (buyer's agent) provides professional assistance. Buyer's agents can analyze market trends, screen suitable properties, and assist in negotiating prices to ensure buyers receive the best possible terms. Furthermore, agents can liaise with lawyers and loan officers to ensure transactions comply with legal requirements and mitigate transaction risks associated with unclear terms and loan approval issues.
Professional advice: How to seize this opportunity?
As Brisbane buyers’ agents, we recommend that prospective buyers prepare the following:
✅ Get mortgage pre-approval early, ensuring sufficient financial capacity to purchase a new building
✅ Find a reliable builder, ensure that the property is completed on time to avoid affecting the stamp duty exemption qualification
✅ Save proof of occupancy(such as water and electricity bills, address registration) to cope with government audits
✅ Seek professional legal advice, ensure compliance with stamp duty exemption requirements to avoid tax collection due to violations
While the new policy lowers the barrier to entry for buyers, it may also increase market demand and affect future property prices. Buyers should plan early to avoid missing out on opportunities.
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