Ready to make the hop? What are the requirements for claiming the first home transfer duty concession?

Essentially there are two key criteria that need to be met to claim the full first home transfer duty concession:

1. You meet the eligibility requirements; and
2. The purchase of the property is not subject to a lease with a duration greater than six months beyond the settlement date.

 Eligibility Requirements

You are entitled to this concession when acquiring your first residence when you are purchasing a home valued under $500,000.00 (and a reduced rate of transfer duty for properties valued between $500,000.00 and $550,000.00), and you:

1. Have never claimed the first home concession
2. Have never held an interest in a residence anywhere in Australia or overseas
3. Be at least 18 years of age
4. Move into it with your personal belongings and live there on a daily basis within 1 year of settlement; and
5. Not dispose (sell, transfer, lease or otherwise grant exclusive possession) of all or part of the property before you move in.

To obtain an estimate of your transfer duty please find a link to a calculator below:

https://www.qld.gov.au/housing/buying-owning-home/advice-buying-home/transfer-duty/how-much-you-will-pay/calculating-transfer-duty/estimate-transfer-duty

 

The property is subject to an existing lease

The second condition for claiming your first home transfer duty concession involves existing leases. If you are buying a property which is subject to a tenancy in place, the existing tenants must move out when their lease expires or within 6 months of settlement, whichever is the earlier, for you to stay eligible for the concession.

You cannot decide to extend or renew the lease of the current tenant’s pass that 6-month date after settlement. You also cannot buy a home which you want to live in at some point but decide to rent it out first beforehand.

 

What happens if your circumstances change after claiming the first home transfer duty concession?

If post paying the transfer duty your circumstances change, you will have an obligation to contact the Queensland Office of State Revenue to have your applicable transfer duty reassessed to determine any additional duty that may be payable.

MAP Lawyers are a conveyancer firm with years of experience helping customers get the outcomes they are entitled to. Our expert team is ready to assist you with any conveyancing needs. Call  1300 680 584 or get in touch with us online for more information.

Updated 15/07/2022