What is stamp duty?
Stamp duty or transfer duty is a fee that is imposed by the government when a property is transferred from one owner to another. It is payable on all property purchase transactions in Queensland.
The amount charged is calculated according to property value and whether you’re purchasing the property as a home or an investment. The higher the property value , the more stamp duty you will need to pay.
Stamp duty can be a major additional cost towards purchasing a property, but concessions and discounts are applicable under different situations; for example, first home buyers pay a lower rate of duty than somebody buying an investment property.
Three significant factors primarily determine stamp duty:
- the territory you’re buying the property in,
- the value of the property,
- and whether you’re eligible for any concessions or exemptions.
How do I calculate stamp duty in QLD?
The Queensland Office of State Revenue (OSR) determines the stamp duty by applying a transfer duty rate to the ‘dutiable value’ of your property.
Your property’s dutiable value is its market value or the amount you agree to pay for the property, whichever is higher .
Even if the property is a gift, you might still be required to pay transfer duty based on the property’s market value.
The stamp duty (transfer) rates for Queensland (QLD) from 1 July 2020 are as follows:
|Property value||Stamp duty (transfer duty) rate|
|Less than $5,000||$0.00|
|$5,000 to $75,000||$1.50 for each $100, or part of $100, over $5,000|
|$75,000 to $540,000||$1,050 plus $3.50 for each $100, or part of $100, over $75,000|
|$540,000 to $1,000,000||$17,325 plus $4.50 for each $100, or part of $100, over $540,000|
|More than $1,000,000||$38,025 plus $5.75 for each $100, or part of $100, over $1,000,000|
Source: QLD Government
Stamp duty QLD exemptions
What stamp duty exemptions apply in QLD?
You can claim an exemption from transfer duty on transactions involving these situations:
- When the property owner dies and the property is transferred to the beneficiaries of the owner’s will.
- You don’t pay transfer duty while transferring property relating to a married couple, de facto couple or divorced.
- If you have registered as a charitable institution, then you are eligible to claim an exemption from transfer duty.
Are there any stamp duty exemptions for first home buyers in QLD?
You can claim a first home buyer concession for transfer duty when acquiring your first residence.
The first home buyer concession only applies to a home valued under $550,000. It can save you up to $15,925. On a case by case basis, you may apply for a home valued over $550,000 as well.
The Queensland First Home Owners’ Grant is a state government initiative to help first homeowners. If your contract is dated 1 July 2018 or later, you can get the Queensland grant of $15,000, provided you are buying or building a new house valued at less than $750,000.
Likewise, HomeBuilder Grant provides individuals and couples with $25,000 towards building or buying a new home provided you meet the eligibility criteria.
How do I calculate stamp duty on vacant land in QLD?
To calculate the stamp duty on land in QLD, enter the land value in our calculator, and choose vacant land to get the stamp duty payable.
The duty payable is calculated the same way as a standard house or unit.
The first home vacant land exemption only applies to vacant land valued under $400,000 and can save you up to $7,175.
|Vacant land value||Duty payable||Calculation|
|$250,000||$0.00||No duty payable because the value of the vacant land is under $250,000.|
|$260,000||$825.00||The transfer duty without the exemption is $7,525.|
|$400,000||$12,425.00||The stamp duty exemption doesn’t apply because the value of the vacant land is $400,000 or over.|
Source: QLD Government
What is the stamp duty surcharge for foreign investors?
If you’re a foreign buyer you will still be entitled to the concessions like first home or first home vacant land as long as you meet the other criteria of these concessions.
You might be able to avoid foreign citizen stamp duty if only the expat or Australian citizen is on the title of the loan while still borrowing with a foreign citizen or non-resident.
You can find the lending criteria and advantages of this loan on the One on Title, Two on Loan page.
No stamp duty changes for Queensland in 2020/21
On 1 December 2020, the Queensland government announced their budget for 2020/21.
Unfortunately, they were no changes or reforms made for stamp (transfer) duty in Queensland.
However, they did announce:
- A 3-month land tax deferral for 2020-21 assessment year.
- A waiver of land tax foreign surcharge for 2019-2020 year.
The land tax relief measures were announced to alleviate the impact of COVID-19.
FAQs: Stamp duty QLD
Who pays stamp duty in QLD?
Everyone who buys or acquires property in Queensland will need to pay stamp duty.
Regardless of whether the property is for residential, commercial or investment purposes, you need to pay stamp duty unless you’re eligible for an exemption or your property is valued at less than $5,000.
Who is the stamp duty payable to in QLD?
In Queensland, once your transfer liability duty is assessed, you can pay your stamp duty through credit card, telephone or internet banking, electronic funds transfer, or cheque or money order to the Office of State Revenue (OSR).
When do you pay stamp duty in QLD?
In Queensland, stamp duty must be paid within 30 days of settlement. You should always make sure you’ve allocated the amount for stamp duty before the settlement day, alongside any solicitor’s fees, removalists fees and other expenses.
Do I have to pay stamp duty for an off-the-plan purchase?
If you buy a property ‘off the plan,’ transfer duty is payable within three months of the date of the completion of the agreement, or within three months of the assignment of the purchaser’s interest in the agreement.
Are you ready to apply for a home loan?
If you want to buy or build a property in Queensland, we can help you get qualified for a home loan.
Our mortgage brokers will help you through the process of finding out how much stamp duty you may need to pay and they will help you identify if you are eligible for exemptions.
Fill in our free assessment form or call us at 1300 889 743 to speak to one of our specialist mortgage brokers.