Qld government scraps stamp duty for first home buyers
Eligible first home buyers who purchase homes or residential land after 1 May 2025 will no longer be required to pay stamp duty following the passage of new legislation in Queensland.
The Queensland government has announced that starting today (1 May 2025), eligible first home buyers will no longer have to pay stamp duty when purchasing or building a new home in the state.
Premier David Crisafulli said the reform would enable Queenslanders to save tens of thousands of dollars in upfront fees and enter the housing market sooner.
“Stamp duty has been stamped out to make way for more home ownership for more Queenslanders,” Crisafulli said.
Across Queensland, the abolishment of stamp duty will save first home buyers an average of $9,906 for a house and land package at median price, resulting in a saving of almost $39,500 in Brisbane North and more than $24,000 in the Toowoomba market.
While there will be no value cap for homes or residential land to be eligible, buyers must use the purchased property as their primary place of residence within one year of settlement for transfer duty costs to be waived.
Additionally, the contract or arrangement for a new home must be dated on or after 1 May 2025 for stamp duty not to be payable.
Buyers who demolish an existing home on a plot of land before moving in will not be eligible for the concession.
Treasurer and Minister for Home Ownership David Janetzki said that stamp duty had hindered Queenslanders from entering the property market and that the reform was a “commonsense change that will provide real cost of living relief”.
“Every Queenslander deserves a place to call home, and abolishing stamp duty is a critical step to help make that dream a reality,” Janetzki said.
“These steps will help first-time buyers and ease record low vacancy rates while also encouraging new builds and boosting housing supply.”
In June last year, Queensland’s previous Labor government decided to raise the first home owner concession threshold on stamp duty from $500,000 to $700,000.
Earlier this year, the ABC reported that the abolishment of transfer duty in Queensland was criticised by the opposition, with shadow treasurer Shannon Fentiman arguing that the changes could benefit wealthier home buyers while disadvantaging the rest.
“Someone buying a $2 million property would receive nearly six times as much in first home tax support as a first home buyer purchasing a median property in Bundaberg,” Fentiman said.
Nevertheless, the CEO of the Real Estate Institute of Queensland (REIQ), Antonia Mercorella, said the reforms would support home ownership across Queensland.
“This will save first home buyers of new homes and land tens of thousands of dollars and lower the upfront financial hurdles to home ownership,” Mercorella said.
The changes also follow the Queensland government’s introduction of legislation allowing first home owners to rent out rooms while maintaining eligibility for stamp duty concessions or grants.
While buyers must still live in a property they purchase for at least one year, they are no longer restricted from renting out any part of their property for 12 months after purchase.
Mercorella said the reform would extend beyond first home buyers by helping to generate rental vacancies across Queensland.
“Another sensible step backed by the REIQ is allowing first home buyers to rent out a room while keeping concessions – this not only supports home ownership but also helps address the need for rental supply,” Mercorella said.