Who Qualifies for a QLD Transfer Duty Concession After August 2026? The New Eligibility Rules Explained
Since 1 August 2026, buyers entering into a Queensland property transaction generally need to be an Australian citizen, an Australian permanent resident or a specified foreign retiree to qualify for a home-related transfer duty concession. For many buyers on temporary visas, that change may mean paying ordinary transfer duty instead of a concession, and, if they are also a foreign acquirer, additional foreign acquirer duty (AFAD).
A second change is in progress. The Home Ownership and Other Legislation Amendment Bill 2026 passed Queensland Parliament on 13 October 2026. It includes a change intended to let eligible first-home buyers claim the vacant-land concession when certain existing structures, such as a garden shed, are on the block. However, the change is to commence on Royal Assent. Buyers should confirm that it has commenced before relying on it.
This guide explains who may qualify, what the main thresholds actually mean, and what to check before signing a contract.
Who can claim a home concession after 1 August?
For transactions entered into on or after 1 August 2026, a person generally needs to be one of the following to claim a Queensland home or first-home transfer duty concession:
an Australian citizen;
an Australian permanent resident; or
a specified foreign retiree who meets the relevant criteria.
The date of the transaction matters. For a typical purchase, the relevant date is when the contract is entered into, not when settlement takes place. A visa or residency status change after the transaction does not necessarily change the duty outcome.
A person on a temporary visa will generally not meet the new residency eligibility test. If that person is also a foreign person under the AFAD rules, the transaction may attract the 8% surcharge on their share of the dutiable value of residential land. Specified foreign retirees are a separate category and may have different concession and AFAD treatment. The rules are technical, so visa category and ownership arrangements should be checked individually.
Where there are multiple buyers, one buyer may qualify while another does not. A concession may apply to the qualifying buyer’s interest, while ordinary duty, and potentially AFAD, applies to the other buyer’s share.
What the home concession does, and what the thresholds mean
The home concession is a reduced transfer duty rate for an eligible buyer acquiring a residence to live in. It can apply even if the buyer has owned a home before. The buyer generally must move in with their personal belongings and live in the property on a daily basis within one year of settlement, then meet the ongoing conditions.
It is important not to confuse the home concession with the first home concession. The Queensland Revenue Office (QRO) does not describe the general home concession as a concession that is available only on homes worth $700,000 or less. Instead, it reduces the duty rate applied to the first $350,000 of the home’s value, with the general duty rates applying to the balance. Its value depends on the property and transaction.
For an eligible buyer purchasing an established first home, the first home concession has different thresholds:
For a home valued at $700,000 or less, the concession can reduce transfer duty to nil.
Between $700,001 and $799,999, a partial concession may apply.
At $800,000 or more, the first home concession is not available, although the general home concession may still be relevant.
The exact duty is assessed under the applicable rates and transaction circumstances. Check the QRO’s first home concession guidance and transfer duty estimator before budgeting.
Buying a new home or vacant land
The first home (new home) concession is a separate concession for eligible first-home buyers acquiring a new or substantially renovated home. For contracts entered into on or after 1 May 2025, it can reduce duty to nil, with no value cap on the home and residential land attributed to it. This is not a $750,000 concession that phases out at $800,000. Additional land that is not residential or is not used for residential purposes may still attract duty.
For eligible first-home buyers acquiring residential vacant land to build their first home, the first home vacant land concession can also reduce duty to nil, with no value cap under the current rules. The buyer must generally build one first home, move into it and live there daily within two years of settlement, as well as satisfy the other eligibility requirements.
The QRO’s current guidance says the land must have no building or part of a building on it at the time of acquisition. The Bill passed on 13 October would expand the meaning of vacant land for this concession to include certain existing structures. The change is intended to cover structures such as sheds or carports that do not meet the specified habitation or building criteria. It would still require the buyer to meet the other first-home and occupancy conditions.
The passage of the Bill does not, by itself, mean the shed change is already in force. The parliamentary brief says this amendment commences on Royal Assent and applies to transactions entered into on and after that date. Check the Queensland Government announcement and Queensland Parliament’s Bill information for the commencement status before signing.
The Bill also addresses a technical issue affecting some newly constructed homes that passed between a developer and builder under certain “builder’s terms” arrangements. The stated aim is to make the first home (new home) relief available where the home meets the requirements, rather than disqualifying a buyer because of that transaction history.
The separate 8% foreign acquirer surcharge
AFAD is additional to ordinary transfer duty. The current rate is 8% of the dutiable value of the foreign acquirer’s interest in residential land. A home concession can reduce the ordinary transfer duty calculation, but it does not automatically remove AFAD.
AFAD is assessed under separate rules and can apply to foreign individuals, companies and certain trusts. The foreign status of a company or trust may depend on ownership or beneficiary arrangements, so buyers using an entity should obtain specific advice. The QRO explains the calculation and exceptions in its AFAD assessment guidance and information about who may be a foreign person.
A specified foreign retiree may qualify for a home concession, but that does not necessarily mean they will pay no AFAD. There is a separate potential AFAD exemption for eligible specified foreign retirees purchasing a principal place of residence, subject to its own conditions.
What to check before signing
Before entering into a Queensland contract, buyers should check:
Citizenship or visa status: Will each buyer meet the citizenship, permanent residency or specified foreign retiree test on the transaction date?
Ownership shares and entity structure: Are there co-buyers, a company or a trust? Each interest may be assessed differently.
Intended use: Will the buyer genuinely occupy the home, or build and occupy a first home on the land, within the required timeframe?
First-home history: Has the buyer ever held an interest in a residence in Australia or overseas, or previously claimed the vacant-land concession?
Property type and value: Is it an established home, an eligible new home or vacant land? What is its dutiable value, and is any part non-residential?
Structures on vacant land: Is the Bill’s shed-related amendment in force on the contract date, and does the structure meet the statutory criteria?
For a first-home concession, buyers generally need to be at least 18, acquire as an individual, and meet the relevant ownership and occupancy tests. Each concession has specific rules, so an online estimate is not a substitute for checking the transaction details.
If duty is assessed without the concession
If a buyer pays duty at the full rate and later establishes that they qualified, QRO guidance allows them to apply for a reassessment. If QRO approves the concession, it can recalculate the duty and refund the difference. This is not automatic: the buyer must provide the relevant claim and supporting documents.
A reassessment can also result in additional duty if a buyer claims a concession but does not meet its occupancy or other requirements. Interest or penalty tax may apply depending on the circumstances. Buyers should notify QRO if their plans change in a way that affects eligibility.
Get advice before the contract is signed
Transfer duty can materially affect the upfront cost of buying, particularly when buyer residency status, multiple ownership interests, a new build or a block with existing structures is involved. A pre-purchase review can help identify issues before they become contract or settlement problems.
Lightning Legal provides fixed-price conveyancing with direct access to an experienced solicitor. First-home buyers in Brisbane, Ipswich, Logan and Forest Lake can seek advice before signing through our Queensland buyer conveyancing service. Read about our fixed-price services or contact Lightning Legal to discuss your purchase.
This article is general information, not legal or tax advice. Eligibility depends on the facts of each transaction and the law in force on the relevant date. Obtain advice before signing if your circumstances are unclear.
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