Originally Published 1st October 2008

From 1 September 2008 first homebuyers will not pay transfer duty (stamp duty) on homes valued up to $500,000 (previously $350,000).

In addition to increased concessions to first home buyers, other Queensland Government initiatives announced in the 2008-09 State Budget include:

  • the increase of the Principal Place of Residence concession to $350,000; and
  • the abolition of mortgage duty from 1 July 2008; and
  • transfer duty concession on vacant land purchased to build a first home, up to the value of $150,000.

Including the existing First Home Owners Grant, for a home valued up to $500,000 this represents a total benefit for first home buyers of $15,925.

To be eligible for the First Home Owners Grant, homebuyers must meet certain residency conditions. In particular, the applicant must:

  • be at least 18 years of age on the date of entering into the contract (unless the Commissioner has specifically granted an exemption to an applicant under 18 years of age);
  • a natural person (e.g. not a company or a trust); and
  • an Australian citizen or permanent resident (at least one of the applicants).

In addition to this, the homebuyer (or the homebuyer's spouse) must not have previously:

  • owned an interest in residential property in Australia before 1 July 2000 (including an investment home);
  • owned an interest in residential property in Australia, on or after 1 July 2000, in which the homebuyer has also lived; and
  • received a First Home Owners Grant anywhere in Australia (unless the homebuyer has repaid it in full including any penalty).

All applicants for the First Home Owners Grant must occupy the home as their principal place of residence within 1 year of completion of their purchase and remain in continuous occupation for at least 6 months. For the most common eligible transaction types, completion occurs:

  • when buying a home - when the buyer's title is registered; or
  • when building a home - when the building is ready to occupy and any completion requirements are satisfied.

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.