The Queensland Government offers concessions on transfer duty for homes and first homes. To qualify, buyers must meet specific conditions, including occupancy requirements. This guide explains how the concession works, key eligibility criteria, and what happens if requirements are not met.
What is the Home and First Home Concession?
The concession applies to certain property transactions, including:
- Buying or transferring ownership of a home, first home, or vacant land for building a first home
- Acquiring a long-term lease for residential property
- Vesting of a home, first home, or vacant land under specific legal provisions
The concession reduces the amount of transfer duty payable, helping home buyers save money when purchasing property.
Who Qualifies for the First Home Concession?
To be eligible for the first home concession, buyers must:
- Have never owned residential property in Queensland or elsewhere (except as a trustee, tenant, or mortgage holder)
- Have never previously received a vacant land concession
- Move into the home as their principal place of residence within one year of the transfer date
- If purchasing vacant land, build and move into a home within two years of the transfer date
What is the Transfer Date and Occupation Date?
- Transfer date: The date you become legally entitled to possession of the property
- Occupation date: The date you start living in the property as your primary residence
For retirement village residents who acquire a unit, the occupation date is the date they move in under a leasing arrangement.
How is Principal Place of Residence Determined?
To confirm the home is your primary residence, the following factors may be considered:
- Have you moved personal belongings into the home?
- Is your family living in the home?
- How much time do you spend living there?
- Is your mail delivered to the home?
- Are utility bills (electricity, gas, phone) in your name at this address?
- Is this address listed on the electoral roll?
Partial Loss of the Concession
If you rent out, transfer, or stop living in the home within one year of the occupation date, a portion of the concession may be revoked. The amount to be repaid depends on how many days you failed to meet the occupancy requirements.
Example: Renting Part of the Property
Anthony and Michael received a first home concession for a home they bought on January 12 and moved into on January 18. On February 20, Anthony’s aunt moved into a separate self-contained unit on the property and paid rent. Since only part of the property was rented for residential purposes, the full concession remained.
Example: Renting the Home Before One Year
Clara and Dimitri bought a home for $350,000 and moved in on March 5. Their transfer duty was reduced from $10,675 to $3,500 due to the concession, saving them $7,175. However, they rented the property out on October 8—218 days after moving in. Since they failed to meet the occupancy requirement for 147 days, they had to repay $2,889.65 of the concession.
Full Removal of the Concession
The entire concession will be revoked if you:
- Sell, lease, or stop using the home as your principal residence before moving in
- Fail to occupy the home within one year of purchase (or two years for vacant land)
Example: Using Part of the Property for Business
Xavier and Yolanda bought a home for $300,000 and moved in on May 10. On July 8, they leased part of their property to a local tradesman for business use. Because they granted exclusive possession for non-residential use within the first year, their concession was partially revoked. Having only occupied the property for 60 days, they had to repay $4,951.03 of the concession.
Example: Selling the Home Too Soon
Gerry and Henry bought vacant land for $360,000, intending to build their first home. They moved in on March 1 but sold the property on May 30. Since they lived there for only 91 days (instead of one year), they had to repay $7,480.58 of the concession.
Example: Failing to Occupy the Property
Ed and Francesca purchased a home for $350,000 but initially planned to rent it out, so they did not apply for the first home concession. When their tenants moved out in November and they moved in, they tried to claim the concession. However, because they had leased the home before occupying it, they were ineligible.
Claiming the Concession Later
If you did not claim the concession at the time of purchase but later meet all the conditions, you can apply for a reassessment. However, you must:
- Start living in the home within one year of purchase (or two years for vacant land)
- Not have leased or transferred the property before moving in
If these conditions are not met, you cannot receive the concession.
Need Help?
If you have questions about home and first home concessions in Queensland, Ensure Legal can provide expert advice on your situation.
