The Queensland Government has implemented revisions to key revenue measures through the 2024-25 State Budget. These amendments bring significant changes to the Duties Act 2001, impacting transfer duty concessions and are aimed at helping first home buyers enter the market.

Increased Thresholds for First Home and First Home Vacant Land Concessions

One of the notable changes introduced by the Queensland Government involves the First Home and First Home Vacant Land concessions under the Duties Act 2001. Effective for contracts dated on or after 9 June 2024, the thresholds for these concessions have been adjusted to better accommodate first-time home buyers:

·         First Home Concession: The threshold has been raised from $500,000 to $700,000. Additionally, the phase-out threshold has increased from $550,000 to $800,000. This means that eligible first home buyers purchasing properties below $700,000 will benefit from no transfer duty, with a sliding scale concession for properties up to $800,000.

·         First Home Vacant Land Concession: Similarly, the threshold for vacant land concessions has been increased from $250,000 to $350,000. The phase-out threshold for vacant land has also been adjusted, rising from $400,000 to $500,000. This adjustment aims to support first-time buyers seeking to purchase vacant land for residential purposes.

 Support for new builds and vacant land purchases

·         First Home Owner Grant: The First Home Owner Grant continues to play a pivotal role as a support mechanism for first home buyers, providing up to $30,000 to individuals purchasing or constructing a new home. This grant can be used in conjunction with the new stamp duty concessions, offering substantial financial relief.

·         Vacant Land Concession: The threshold for the first home vacant land concession has been raised from $250,000 to $350,000, with a phase-out limit set at $500,000. This adjustment enables more buyers to achieve significant savings on land acquisitions.

 Adjustment to Additional Foreign Acquirer Duty

In addition to changes in first home concessions, the Queensland Government has also revised the rate of Additional Foreign Acquirer Duty (AFAD) under the Duties Act 2001. Effective 1 July 2024, the rate of AFAD will increase from 7% to 8%. This change reflects the government's approach to managing foreign investment in residential properties, aiming to balance economic growth with local housing affordability considerations.

When do these changes come into effect?

These changes apply to all contracts signed on or after 9 June 2024. If your contract was signed before this date, the previous thresholds will apply.

 These changes mark a significant development for first home buyers grappling with living costs and aspiring to own their homes. By increasing the exemption threshold and offering more generous concessions, the government is facilitating easier access to property ownership, while ensuring that foreign acquisitions contribute proportionately to state revenue. Whether you are purchasing an existing house or constructing a new one, these changes present an excellent opportunity for you to fulfil your dreams of owning your own home.

 We strongly recommend that you talk to our conveyancing team to decide what searches will be best on your property purchase. We offer personalised service and expert advice for your property purchase. Our conveyancing team know the local area and can assist you with what searches will be best for you.

Millwater Tyrrell Law offer a free initial discussion about your sale or purchase with our expert Ipswich conveyancing team. Do not hesitate to give us a call to find out more about stamp duty or any other conveyancing need.