The Queensland Government offers a transfer duty (stamp duty) concession to help first-time home buyers save money. From 1 May 2025, eligible buyers of new homes or vacant land to build their home can receive up to $24,525 in duty savings.
This article from Ensure Legal provides a practical breakdown of how the concession works, who qualifies, and what to avoid.
What is the First Home Concession
The First Home Concession is a discount on the transfer duty you normally pay when buying a home in Queensland. It is designed for individuals who are purchasing their first home to live in. Unlike the First Home Owner Grant, which is a cash payment, the concession simply reduces or eliminates the tax at settlement.
Who can apply
To be eligible for the First Home Concession, you must:
- be at least 18 years old
- be an individual, not a company or trust
- have never owned residential property in Australia or overseas
- have never claimed a first home vacant land concession
- move into the property within 12 months of settlement and live there every day for at least 6 continuous months
- pay market value if the home is priced between 700,001 and 799,999 dollars
Foreign citizens may apply, but additional foreign acquirer duty may apply.
What type of property qualifies
Only certain types of homes and land qualify. This table shows what’s included:
| Property type | Eligible for concession | Explanation |
|---|---|---|
| Brand new home | Yes | A home that has never been lived in or sold as a residence |
| Substantially renovated home | Yes | Treated as new if renovations meet certain criteria |
| Existing or second-hand home | No | May still qualify for the general home concession |
| Vacant land to build new home | Yes | Requires construction and occupation within time limits |
| Demolished before occupancy | No | You must live in the home before any demolition |
How much duty will you pay
The amount you save depends on the property’s value. If your home is under $700,000, you may pay no duty at all.
| Property value | Duty payable | What this means |
|---|---|---|
| $650,000 | $0 | Full concession applies, no duty required |
| $730,000 | $6,555 | Partial concession applies, still saving $12,145 |
| $850,000 | $24,100 | Above the $800,000 cap, so only the general home concession applies |
Use the QRO transfer duty estimator for a more detailed calculation.
How to apply
You must prepare and submit these documents when lodging your contract for stamping:
- Form D2.1 – Claim for home or first home transfer duty concession
- Identity details annexure (for any non-Australian buyer)
- Titles Queensland Form 1 Transfer and Form 24
- Cover letter with your contact details and property information
If you’re not yet eligible but expect to meet the requirements later, you can pay full duty first and apply for a reassessment and refund.
Can you rent out the property
Leasing rules were updated from 10 September 2024. You can now rent part of your home in some situations, but there are still limits.
| Scenario | Eligible for concession | Notes |
|---|---|---|
| Renting the property before you move in | No | Breaches conditions; full duty may be charged |
| Renting part of it after moving in | Yes (if lease starts after 10 Sep 2024) | Must still live in the home as your main residence |
| Renting the whole property after moving in | No | Renting 100 percent within 1 year voids the concession |
| Having housemates or boarders | Maybe | Allowed if you remain the full-time resident |
You must remain the main occupant. If the lease started before 10 September 2024, even partial leasing may disqualify your concession.
What if you sell or transfer the property
If you sell or transfer ownership too soon, you may lose your concession and be reassessed for duty.
| Event | Consequence |
|---|---|
| Sell or transfer before moving in | Full concession revoked |
| Sell within 12 months of moving in | Partial concession may apply |
| Give away or transfer partial interest | Treated as disposal; reassessment likely |
You must notify the Queensland Revenue Office using Form D2.4 if your ownership or use of the property changes.
Special rules for minors
Buyers under 18 years old can only apply if the Queensland Revenue Office is satisfied that:
- the purchase is genuine and not part of a scheme to avoid duty
- the funds are independently sourced
- the buyer will live in the property as intended
Minors who do not qualify may still apply for the general home concession.
First home concession vs first home owner grant
These are two separate schemes. You can apply for both, but the rules differ. Here’s how they compare:
| Feature | First Home Concession | First Home Owner Grant |
|---|---|---|
| Reduces transfer duty | Yes | No |
| Provides a cash benefit | No | Yes (e.g. $30,000 for new homes) |
| Applies to existing homes | No | No |
| Allows partial rental | Yes, under new rules | More flexible |
| Residency required | Yes, live in the home within 12 months | Yes, with similar conditions |
It’s important to check both eligibility lists carefully, especially if planning to lease part of the home.
When to notify QRO
You must notify the Queensland Revenue Office if:
- you fail to move in within 1 year of settlement
- you rent or lease the home before moving in
- you rent out the entire home within 1 year of moving in
- you demolish the home before living there
- you sell or transfer any portion of ownership early
Use Form D2.4 to request a reassessment. You may have to repay part or all of the duty you were initially exempt from.
How Ensure Legal can help
At Ensure Legal, we guide first home buyers through every legal step, including:
- confirming eligibility for the First Home Concession and First Home Owner Grant
- reviewing your contract to protect your rights
- preparing and lodging all necessary duty forms and title documents
- advising on move-in deadlines and rental compliance
- applying for reassessment or responding to QRO reviews if things change
If you’re planning to buy your first home in Queensland, contact our team today for clear legal support from contract to keys.
