Exciting changes are on the horizon for homebuyers and property owners in Queensland. From December 2024 a series of new rules and concessions have come into effect, aimed at making it easier and more affordable for first home buyers to enter the property market. Here’s a guide to what’s changing and what it means for you.
Rent-a-Room Measure – Flexibility for Homeowners
Starting 6 December 2024, if you’ve received a home concession, you’ll be allowed to rent out part of your property during the one-year occupancy period without losing your concession benefits. This means you can lease a room or portion of your home, as long as the lease begins after you move in and you continue to live in the property. This offers much-needed flexibility for homeowners who want to offset costs without jeopardising their concessions.
First Home (New Home) Concession – Full Duty Relief for New Builds
From 1 May 2025, first home buyers purchasing a new or substantially renovated home to live in are eligible for full transfer duty relief. This is a significant saving with no price cap on the home’s value. To qualify, the home must be brand new or meet specific renovation standards — meaning it cannot have been lived in since the renovations. Contracts for these purchases must be signed on or after 1 May 2025 to be eligible.
First Home Vacant Land Concession – Buy Land, Build Your Dream Home
Also introduced from 1 May 2025, a new concession applies for first home buyers purchasing vacant residential land with the intention to build. Like the new home concession, this offers full transfer duty relief with no price cap. Only land classified as residential will qualify, and buyers must pay market value for the land.
What About Existing Homes?
Good news for buyers of existing homes: the current first home concession remains available with no changes to eligibility or rates. This means you can still benefit from concessions if you’re purchasing an established home.
Important Conditions and Compliance
There are some key things to keep in mind:
- Timing matters: Contracts signed before 1 May 2025 won’t qualify for the new concessions, even if settlement happens later.
- Anti-avoidance rules: The government has introduced measures to prevent buyers from manipulating contract dates or cancelling and re-signing contracts to gain eligibility unfairly.
- Updated paperwork: New vendor statements and forms must be used to claim these concessions correctly. Buyers must also notify the Commissioner within 28 days if they no longer meet eligibility requirements.
What Does This Mean for You?
If you’re a first home buyer planning to purchase a new home, vacant land, or an existing home in Queensland, these changes could save you thousands in transfer duty. It’s important to be aware of the contract signing dates and to ensure you meet all eligibility requirements. If you’re unsure about how these changes affect your situation, speaking with a conveyancing professional or legal advisor can help you make informed decisions and avoid costly mistakes.
Feel free to reach out if you have questions about buying property or claiming concessions in Queensland.
