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When purchasing a home or land stamp duty is payable to the Government via the Office of State Revenue.

In some circumstances the purchaser/s may be entitled to a stamp duty concession or exemption, which can diminish the amount payable to the government.

In QLD and NSW there are different concessions and exemptions available to homebuyers for different purchasing situations.

See our table below for details of differences between the states and concessions.

QLD
Home Concession:The Home Concession is available when a home is purchased and the owners will reside in the property as their principal place of residence for a period of 12 months or they move into the property within a year after the transfer date.The concession is 1% up to 350,000 and normal ad valorum duty for any amounts over this. For example, a house worth 500k would attract duty of $8,750.00 See the table below:Home Concession rates as follows:

Purchase Price Concession
Up to $350,000 $1.00 for each $100 or part of $100
$350,000 to $540,000 $3,500 + $3.50 for every $100 or part of $100 over $350,000
$540,000 to $1,000,000 $10,150 + $4.50 for every $100 or part of $100 over $540,000
More than $1,000,000 $30,850 + $5.75 for every $100 or part of $100 over $1,000,000

First Home Concession:

You can claim the First Home Concession if you have never owned residential land anywhere in the world. You must have also never claimed the first home vacant land concession. The owners must be of at least 18 years of age and the property must be their principal place of residence. Depending on the purchase price this concession may reduce the duty payable to $0. For example, a house up to a value of 500k is zero.

First Home Concession is calculated at the home concession rate less the following concession:

Purchase Price Concession Duty
Up to $504,999.99 $8,750 $0
$505,000 to $509,999.99 $7,875 $1,150.00-$1,225.00
$510,000 to $514,999.99 $7,000 $2,100.00-$2,275.00
$515,000 to $519,999.99 $6,125 $3,150.00-$3,325.00
$520,000 to $524,999.99 $5,250 $4,200.00-$4,375.00
$525,000 to $529,999.99 $4,375 $5,250.00-$5,425.00
$530,000 to $534,999.99 $3,500 $6,300.00-$6,475.00
$535,000 to $539,999.99 $2,625 $7,350.00-$7,525.00
$540,000 to $544,999.99 $1,750 $8,400.00-$8,625.00
$545,000 to $549,999.99 $875 $9,500.00-$9,725.00
$550,000 or more Nil $10,600.00+

First Home Vacant Land Concession

This concession is available to those who buy vacant land valued at under $400,000.00. It is a requirement to be over 18 years of age and to have never held interest in residential land anywhere in the world. You must build your first home on the land and there must only build one home on the land. There must be no building, part of building on the land when purchased. The first home vacant land concession must not of been claimed in the past.

Duty for the First Home Vacant Land Concession is calculated the same as the Home concession (see above) minus the below concession.

Purchase Price Concession
Up to $250,000 100% of transfer duty
$250,000 to $259,999.99 $7,175
$260,000 to $269,999.99 $6,700
$270,000 to $279,999.99 $6,225
$280,000 to $289,999.99 $5,750
$290,000 to $299,999.99 $5,275
$300,000 to $309,999.99 $4,800
$310,000 to $319,999.99 $4,325
$320,000 to $329,999.99 $3,850
$330,000 to $339,999.99 $3,375
$340,000 to $349,999.99 $2,900
$350,000 to $359,999.99 $2,425
$360,000 to $369,999.99 $1,950
$370,000 to $379,999.99 $1,475
$380,000 to $389,999.99 $1,000
$390,000 to $399,999.99 $525
$400,000 or more No concession

Great Start Grant

The Great Start is the government’s initiatives to assist first homeowners get their first home sooner. $15,000.00 could be received if you are purchasing a new house, unit or townhouse or building your own first home. Keep in mind that the value of the new home needs to be under $750,000.00 and you need to be over the age of 18.

NSW
First Home Owner Grant (New Homes) schemeThe NSW government offers a $15,000.00 grant available for eligible applicants. The grant will be reduced to $10,000.00 on 1 January 2016.The grant could apply someone who is purchasing a home that has never been occupied, including occupation by the builder or tenant. The home must also have never been sold as a residence beforeIf someone is purchasing a property that has been considerably renovated or rebuilt after a demolish they may also be eligible for the grant.Please note that the threshold for contracts dated between 1 October 2012 and 30 June 2014 is $650,000.00

Contracts dated on or after 1 July 2014 experience the threshold of $750,000.00

First Home – New Home

Eligible purchasers could be exempt from duty on new homes up to the value of $550,000.00 and will receive concessions for new homes valued between $550,000.00 and $650,000.00.

Purchasers of vacant land will also benefit as no duty will be paid on vacant land up to the value of $350,000.00 and they will receive a concessions for vacant land values between $350,000.00 and $450,000.00.

To be eligible for the First Home concession or exemption the following conditions apply:

  • At least one buyer must be an Australian citizen or permanent resident.
  • The agreement must be for the purchase of the whole property
  • The purchaser cannot be a company or trust.
  • You or your spouse must have not previously owned residential property in Australia.
  • At least one purchaser must occupy the home within 12 months and needs to reside in the property for at lease 6 months.

New Home Grant

The New South Wales Government introduced the New Home Grant scheme on 1 July 2012.

The scheme provides a grant of $5,000.00 towards the purchase of:-

  • New homes;
  • Off the plan homes; and
  • Vacant land on which a new home will be built.

The incentive was designed to stimulate the construction of new homes.

Please be advised that the above should only be considered as general advice and should not be relied upon. We recommend the client obtain specific advice from us before applying for a concession, grant or exemption. Please direct any enquiries to Holly Gilholme on 07 55 068 202. We will be more than happy to provide assistance to you or a mutual client.

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Barry van Heerden

Barry van Heerden

  • Partner
  • Property and Commercial
  • Direct line: (07) 5506 8248
  • Mobile: 0403 452 455
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