Temporary residents buying residential property in Queensland may now face substantially higher transfer duty costs.
From 1 August 2026, eligibility for Queensland’s home, first home, first home new-home and first home vacant-land transfer duty concessions is generally restricted to Australian citizens, permanent residents and certain specified foreign retirees.
Temporary visa holders who are ineligible for a concession may have to pay transfer duty at standard rates, together with the existing 8% Additional Foreign Acquirer Duty (AFAD).
The buyer’s immigration status when the contract is entered into is critical. Receiving permanent residency before settlement may be too late.
What changed on 1 August 2026?
For transactions entered into on or after 1 August 2026, a buyer must generally be one of the following to claim a home-related transfer duty concession:
- an Australian citizen;
- a permanent resident;
- a New Zealand citizen holding a Special Category Visa; or
- a specified foreign retiree.
These requirements were introduced through amendments to the Duties Act 2001 (Qld).
According to the Queensland Revenue Office, each buyer’s eligibility is determined when the transaction is entered into.
Most temporary visa holders—including many student, temporary skilled, bridging and other temporary visa holders—will generally be ineligible.
Which Queensland home concessions are affected?
The new residency requirement applies to four types of transfer duty concession.
Home concession
The ordinary home concession is available when a person purchases a residence to use as their principal place of residence. It can apply even if the buyer has owned property previously.
An eligible buyer can save up to $7,175 in transfer duty.
First home concession
This concession applies to an eligible first home buyer purchasing an established home.
Depending on the property value, the concession can substantially reduce the buyer’s transfer duty. For some lower-priced properties, the duty may be reduced to nil.
First home new-home concession
Since 1 May 2025, eligible first home buyers purchasing a new home may receive a full transfer duty concession, with no property value cap applying to the residential component.
From 1 August 2026, temporary residents generally cannot access this full concession.
First home vacant-land concession
An eligible first home buyer purchasing vacant residential land on which to build their first home may also receive a full transfer duty concession without a value cap.
Temporary residents entering into a contract from 1 August 2026 generally cannot claim this concession.
The contract date is more important than the settlement date
The relevant date is ordinarily the date the buyer enters into the contract—not the date of settlement.
This creates two important scenarios.
Contract signed before 1 August 2026
The new residency requirement generally does not apply to a contract entered into before 1 August 2026, even if settlement occurs after that date.
The buyer must still satisfy the other conditions of the relevant concession.
Contract signed on or after 1 August 2026
The buyer must hold the required citizenship or residency status when the transaction is entered into.
For example, a temporary visa holder who signs a contract on 10 August and receives permanent residency before settlement would generally remain ineligible because they were not a permanent resident when the contract was signed.
Buyers expecting a permanent residency decision should obtain legal advice before entering into a contract.
A regional visa buyer and a permanent-resident partner: whose interest qualifies?
Suppose a buyer holds a temporary subclass 491 visa and signs a Queensland home contract with a partner who is an Australian permanent resident. For a transaction signed on or after 1 August 2026, living in the property does not by itself make the temporary-visa holder eligible for the home concession. QRO says a concession can still be calculated for the eligible partner’s interest, if the other conditions are satisfied; the ineligible buyer’s interest attracts ordinary transfer duty and may also attract the 8% additional foreign acquirer duty if the foreign-acquirer rules apply. This needs an interest-by-interest calculation, not a single concession decision for the couple.
Confirm each buyer’s status when the transaction is entered into and retain the evidence. QRO’s updated D2.1 and D2.7 forms ask whether each transferee was a citizen, permanent resident or specified foreign retiree at that date. A contract signed by 31 July 2026 remains under the former residency rule even if settlement occurs later. See QRO’s official worked examples and form guidance.
How much could a temporary resident pay?
Consider a temporary resident purchasing a $700,000 new home as their first home.
Assume that:
- the buyer is acquiring the entire property as an individual;
- the purchase price is also the property’s dutiable value;
- the property is entirely residential;
- no special exemption applies; and
- the buyer is a foreign person for AFAD purposes.
The estimated duty position would be:
| Duty component | Eligible citizen or permanent resident | Temporary resident before 1 August 2026* | Temporary resident from 1 August 2026 |
|---|---|---|---|
| Ordinary transfer duty | $0 | $0 | $24,525 |
| 8% AFAD | $0 | $56,000 | $56,000 |
| Estimated total duty | $0 | $56,000 | $80,525 |
*Assuming the temporary resident satisfied the previous concession requirements.
In this example, the 1 August change increases the temporary resident’s ordinary transfer duty by $24,525.
AFAD is a separate charge and was already payable by foreign acquirers before the new concession restriction commenced.
The example excludes foreign-investment application fees and other transaction expenses. Actual liability depends on the contract, property, ownership structure, visa status and any available exemption.
Does every joint buyer lose the concession?
Not necessarily.
Where two or more people purchase together, each buyer’s eligibility and ownership interest may be considered separately.
For example, if a couple purchases a home and:
- one buyer is an Australian permanent resident; and
- the other buyer holds a temporary visa,
the permanent resident may be able to claim a concession on their interest. The temporary resident’s interest may be subject to standard transfer duty and AFAD.
The result may also differ where:
- the buyers hold unequal ownership shares;
- one buyer is a first home buyer and the other has previously owned property;
- different concessions apply to different buyers; or
- a trust or company is involved.
The Queensland Revenue Office has updated its transfer duty calculator to accommodate mixed concession claims. These calculations can be complex and should be reviewed before the ownership proportions are finalised.
Changing ownership percentages solely to reduce duty can also have financing, tax, family-law, estate-planning and foreign-investment consequences.
Is AFAD a new tax?
No. AFAD has not been introduced by the 1 August 2026 changes.
AFAD is an additional duty charged at 8% of the foreign buyer’s interest in Queensland residential land. It is added to the ordinary transfer duty payable.
For example, if a foreign buyer acquires a 50% interest in an $800,000 residential property, the AFAD attributable to that buyer’s interest would ordinarily be:
$800,000 × 50% × 8% = $32,000
The Queensland Revenue Office confirms that AFAD can apply whether the property is purchased as a home or an investment.
The significant change from 1 August is that temporary residents generally lose the ability to reduce the ordinary transfer-duty component through a home concession.
Who is a permanent resident for these rules?
A permanent resident generally includes:
- a person holding an Australian permanent visa; and
- a New Zealand citizen holding a Special Category Visa under the Migration Act 1958.
A New Zealand permanent resident who is not an Australian permanent visa holder or qualifying Special Category Visa holder may still be treated as a foreign person.
Visa labels and personal descriptions such as “living permanently in Australia” do not determine the duty position. The buyer’s legal visa status when the transaction is entered into must be checked.
Who qualifies as a specified foreign retiree?
The exception for specified foreign retirees is narrow.
It generally covers:
- holders of subclass 405 or subclass 410 retirement visas; and
- certain people who applied for a subclass 103 or subclass 143 parent visa on or after 8 May 2018, whose application remains pending and whose last substantive visa was a subclass 405 or 410 retirement visa.
It does not apply to foreign retirees generally.
A specified foreign retiree may also qualify for an AFAD exemption when purchasing a principal place of residence, provided all legislative requirements are satisfied.
Can temporary residents still purchase Queensland property?
The transfer duty rules determine how much duty is payable. They do not, by themselves, determine whether a foreign person is permitted to purchase the property.
Separate Commonwealth foreign-investment rules also apply.
Foreign persons are generally prohibited from purchasing established residential dwellings unless an exemption or limited exception applies. The Federal Government has extended this restriction until 30 June 2029.
As a result, the Queensland duty changes will be particularly relevant to temporary residents considering:
- new or off-the-plan apartments;
- newly constructed houses;
- house-and-land packages; and
- vacant residential land.
Foreign-investment approval may still be required before entering into the transaction.
Is the First Home Owner Grant affected?
The Queensland First Home Owner Grant is separate from the transfer duty concessions.
It has its own rules concerning:
- citizenship and permanent residency;
- joint applicants and spouses;
- previous property ownership;
- property value;
- whether the home is new; and
- occupancy requirements.
Being eligible for the grant does not automatically establish entitlement to a transfer duty concession. Buyers should check both schemes separately.
What should buyers do before signing?
Before entering into a Queensland residential property contract, a temporary resident or mixed-status couple should consider:
- Confirming each buyer’s citizenship and visa status.
- Checking whether the property is established, newly constructed or vacant land.
- Estimating both ordinary transfer duty and AFAD.
- Checking whether foreign-investment approval is required.
- Reviewing the proposed ownership percentages.
- Considering whether a pending permanent residency application may affect the timing of the purchase.
- Obtaining advice before changing, assigning, nominating or replacing a purchaser under an existing contract.
These matters should be reviewed before signing because a later visa grant or change before settlement may not restore the concession.
Speak with Ensure Legal before entering into a contract
The 1 August 2026 changes can substantially increase the upfront cost of purchasing a Queensland home, particularly for temporary residents buying a new home or vacant land.
Mixed-status couples, buyers awaiting permanent residency and foreign purchasers should understand their transfer duty, AFAD and foreign-investment position before committing to a contract.
Ensure Legal can assist with Queensland conveyancing, contract reviews and the transfer duty implications of a proposed property purchase.
Contact our team before signing your contract to discuss your circumstances.
This article provides general information only and does not constitute legal, taxation, migration or financial advice. Transfer duty and foreign-investment outcomes depend on the particular transaction and the buyer’s circumstances. Independent professional advice should be obtained before acting.
