Your Ultimate Guide to Transfer Duty in Queensland. Aside from saving your home loan deposit, the biggest expense you will be faced with when buying property in Queensland is probably going to be transfer duty. That said, for certain people there are transfer duty concessions available.
What is transfer duty?
Transfer duty, also known as stamp duty, is the tax you are required to pay to the Queensland State Government when you buy property in Queensland. Property can mean land such as residential, rural, agricultural or commercial and dwellings including houses, apartments, townhouses, units, duplexes and buildings. When buying, you will be required to pay transfer duty on land in Queensland.
How much is transfer duty?
Transfer duty differs for every property and for every buyer based primarily on the contract date and the value of the land/property. For most people, transfer duty is going to run into the tens of thousands of dollars unless an exemption applies. Transfer duty is based on a sliding scale according to the value of the property.
As at July 1, 2021 the below rates apply according to the SRO website.
| Value | Rate |
| $0-$5K | Nil |
| $5K – $75K | $1.50 for each $100, or part of $100, over $5K |
| $75K – $540K | $1,050 plus $3.50 for each $100, or part of $100, over $75,000 |
| $540K – $1M | $17,325 plus $4.50 for each $100, or part of $100, over $540,000 |
| >$1M | $38,025 plus $5.75 for each $100, or part of $100, over $1,000,000 |
For contracts entered into before July 1, 2024 historical rates apply.
How to calculate transfer duty in Queensland
As mentioned above, transfer duty is calculated based on the value of the land/property you are purchasing. There are however a lot of variables which can come into play when calculating transfer duty such as:
- The date of the contract for your property purchase
- The dutiable value of the property (generally the greater of the purchase price or market value at the time of contract)
- If this is your first property purchase in Australia
- The zoning of the property such as if it is residential or not
- If the property is to be used for certain commercial, industry or extractive purposes
- Whether you are a foreign purchaser
- If you are purchasing off-the-plan property
- Whether the property is an investment property or principle place of residence
We have a handy transfer duty calculator for Queensland that you can use below.
Use the transfer duty calculator
Click here to use our stamp duty calculator. This will help you to calculate transfer duty in Queensland.
Who pays transfer duty in Queensland?
Transfer duty is paid for by the purchaser. If you are selling and planning on buying again you’ll likely need to pay transfer duty on your next purchase. We would recommend ensuring you include this cost in your budget as you begin to work out what you are going to do next.
Who do I pay transfer duty to?
In Queensland, transfer duty is charged by the State Revenue Office (SRO) and this is who needs to be paid when the property settles, typically you have up to 90 days to pay this. Your conveyancer will organise for these funds to be transferred on your behalf at settlement.
When does transfer duty have to be paid?
In most cases, payment is due within 90 days of settlement. With electronic settlements now in place across Queensland, transfer duty is paid the same day the property settles. Settlement is the day legal ownership of the property is transferred to you. It is also when all monies are exchanged from purchaser to vendor, if there are loans in place this is the day they are drawn down and it’s when fees and transfer duty must also be paid.
It’s important to ensure you have sufficient funds in your account on settlement day to cover any shortfall.
Shortfall is the difference between the total monies you need to pay for the property transaction and the what the bank is going to be paying via the home loan. If you have already paid a deposit, then this will also be taken into account.
Shortfall can range from a few hundred through to hundreds of thousands depending on things like transfer duty payable, fees and other charges. Your conveyancer or solicitor will calculate what your shortfall will be and notify you in advance so you can ensure you have sufficient funds ready on settlement day.
If you buy off-the-plan and you intend to live in the property, you may be able to defer your transfer duty liability for up to 12 months according to the Queensland State Revenue Office.
What exemptions are there in Queensland
The good news is that there are a few transfer duty exemptions in Queensland you may be eligible for, which may mean you don’t have to pay transfer duty at all!
First Home Buyer concession
A stamp duty concession is exactly what you think it is – a concession on the amount of stamp duty you are required to pay. The first home buyer stamp duty exemption is where you don’t pay any stamp duty at all. This applies across Brisbane and Queensland.
If the property you buy is valued at less than $700,000 then you don’t have to pay any stamp duty in Queensland and can result in savings of up to $24,525. So it’s a pretty generous chunk of money the state government are forgoing to help you get into your first home.
If the property is valued at $701,000 up to $799,000 then you pay stamp duty on a sliding scale. You can calculate your transfer duty here on the Queensland Revenue website.
Can I receive both the transfer duty exemption and First Home Owners Grant?
Yes, if you are eligible to receive both of these support packages then you are able to receive both on the same transaction. Your conveyancer/solicitor can guide you through the process of understanding your eligibility and completing any appropriate forms.
Transfers between married couples and de facto partners
If a transfer is being made between a married couple of de facto partners and the property is either the PPR or vacant intended to be used for the family home, then no transfer duty is payable.
Foreign transferees
If you bought your first home and signed the contract on or after the 1 July, 2017 then an exemption may apply allowing you to make transfer duty savings in Queensland.
Applying for an exemption
Any transfer duty exemption you wish to apply for must be done using the State Revenue Office issued forms via your conveyancer.
This may be done using their online portal and completing a digital form or your legal representative may be able to do this on your behalf. Ensure you check with your legal representative before lodging any forms to ensure you are not duplicating efforts or completing incorrect paperwork.
Do foreign purchasers have to pay transfer duty?
Yes. Although in Queensland, some foreign purchasers are exempt from paying transfer duty and instead pay the surcharge purchaser duty.
There are so many different variables when it comes to foreign purchasers it’s critical to get advice from your legal professional prior to signing a contract.
Is transfer duty payable if I am transferring a property to my spouse or de facto?
If a transfer is being made between a married couple of de facto partners and the property is either the PPR or vacant intended to be used for the family home, then no transfer duty is payable. If the property is held as an investment, transfer duty will be payable on the portion of the property being transferred.
A transfer of property to any other relative including children and siblings may attract transfer duty even if the property is being gifted. In this circumstance the duty would be based on the market value of the property.
What if I inherit the land/property?
You may be able to claim an exemption when you inherit via a deceased person’s estate. As mentioned above, there are certain exemptions to this so best to speak with your conveyancer if you are being gifted property.
Can I pay an annual land tax instead of a lump sum upfront?
Certain eligible first home buyers can now opt to pay a smaller annual property tax rather than upfront transfer duty.
Who do I speak to if I have questions about transfer duty?
The best person to speak to is your conveyancer or solicitor. Whilst Entourage can give you general information, whether you qualify for any exemptions or discounts is a question you will need to put to your conveyancer or solicitor. They can help you understand what’s available, calculate your transfer duty and advise how much and when this needs to be paid.
Where does Entourage come in?
An important element of buying property is to ensure your finances are in order. Entourage can provide guidance and support when it comes to making this happen. From organising borrowing power, discussing loan options and features through to understanding repayments and getting your pre-approval in place – working with an Entourage will provide you with peace of mind so you know where you stand. We also save you time and money by doing the heavy lifting with the banks and guiding you to the right finance solution to suit your needs.
Helping you understand what costs you might be looking at when it comes to transfer duty and others fees, the Entourage team go to work to ensure you are ready to purchase and support you all the way through to settlement day (and beyond in many cases!).