Queensland transfer duty underwent a significant first home buyer reform that took effect from 1 May 2025 and continues through the 2026-27 financial year. The headline change is that first home buyers purchasing a brand-new home or vacant land to build on now pay zero transfer duty — with no price cap. For a new house-and-land package in a Brisbane growth corridor priced at $850,000 this reform saves approximately $31,775 compared to the previous rules. Existing home first home concessions top out at $700,000 for a full exemption, phasing to $800,000. Queensland also offers Australia’s most generous First Home Owner Grant at $30,000 for new homes under $750,000. Foreign buyers pay an 8% additional foreign acquirer duty (AFAD). All figures are sourced from the Queensland Revenue Office and are current as at July 2026.
Queensland Standard Transfer Duty Rates 2026-27
Queensland’s standard transfer duty rates apply to all residential purchases that do not qualify for a concession. For dutiable values up to $5,000 no duty is payable. Between $5,001 and $75,000 the rate is 1.5% of the amount exceeding $5,000. For the $75,001 to $540,000 bracket — which covers many entry-level and mid-range homes — the duty is $1,050 plus 3.5% of the amount exceeding $75,000. Between $540,001 and $1,000,000 the duty is $17,325 plus 4.5% of the amount exceeding $540,000. For properties above $1,000,000 the duty is $38,025 plus 5.75% of the amount exceeding $1,000,000.
Compared to Victoria, Queensland is notably cheaper in the $600,000 to $1,000,000 range. A Brisbane home at $800,000 attracts approximately $29,025 in standard duty — about $14,000 less than the same-priced Melbourne property.
First Home Buyer: New Home Zero Duty with No Price Cap
The most significant change in Queensland’s transfer duty system applies to first home buyers purchasing a new home or vacant land intended for construction of a first home. Since 1 May 2025 these purchases attract zero transfer duty regardless of the purchase price. There is no upper limit and no phasing out — the exemption is total.
This reform was introduced to incentivise new housing supply alongside first home buyer support. It covers new houses, new apartments, off-the-plan purchases, and vacant residential land where the buyer intends to build their first home. Buyers must meet standard first home eligibility criteria: they must be at least 18 years old, must not have previously owned residential property anywhere in Australia or overseas, and must move into the property as their principal place of residence within one year of settlement and live there continuously for at least one year.
For a first home buyer purchasing a new $850,000 house-and-land package in a Brisbane growth corridor the saving compared to the standard rate is approximately $31,775. On a new $1.2 million apartment in inner Brisbane the saving is approximately $49,525.
Existing Home First Home Concession
First home buyers who purchase an established (existing) home do not qualify for the unlimited new-home exemption. Instead they fall under the general first home concession: a full exemption on properties valued at $700,000 or below, and a phasing concession for properties valued between $700,001 and $800,000. Properties above $800,000 receive no concession at all.
This means that first home buyers in Queensland face a clear incentive to buy new rather than established, particularly above the $700,000 threshold where the established-home concession begins phasing out while the new-home exemption remains at zero with no cap.
Additional Foreign Acquirer Duty (AFAD)
Foreign buyers of residential property in Queensland pay an additional foreign acquirer duty of 8% on top of the standard transfer duty. The surcharge applies to the dutiable value of the property. Foreign buyers are not eligible for any first home concessions or exemptions. Queensland also imposes an annual land tax surcharge of 2% on foreign owners of residential land.
First Home Owner Grant — $30,000
Queensland’s First Home Owner Grant is Australia’s highest at $30,000. It is available to first home buyers purchasing or building a new home valued at less than $750,000, including house-and-land packages and off-the-plan purchases. The grant is separate from the transfer duty exemption — a first home buyer can receive both the zero-duty exemption on a new home and the $30,000 FHOG simultaneously. This creates a combined benefit of up to approximately $50,000 to $80,000 depending on the property price.
FAQ
Q: Does the unlimited new-home exemption apply to off-the-plan apartments? A: Yes. Off-the-plan purchases of new apartments and townhouses qualify for the zero-duty exemption, provided the buyer is a first home buyer and intends to occupy the property as their principal place of residence. There is no cap on purchase price.
Q: If I buy vacant land to build later, do I qualify for the exemption? A: Yes, vacant residential land purchased by a first home buyer with the intention of building a first home qualifies for the zero-duty exemption. You must begin construction within a reasonable timeframe and occupy the completed home as your principal place of residence.
Q: Can I claim the FHOG and the zero-duty exemption together? A: Yes. The First Home Owner Grant and the transfer duty exemption are separate schemes. A first home buyer purchasing a new home under $750,000 can receive both the $30,000 FHOG and pay zero transfer duty.
Q: If I previously owned an investment property but never lived in it, am I still a first home buyer? A: No. The first home buyer definition in Queensland requires that neither you nor your spouse has ever held an interest in residential land anywhere in Australia or overseas — whether you lived in it or not. Ownership of an investment property disqualifies you.
Q: When is transfer duty payable in Queensland? A: Transfer duty must be paid within 30 days of the transaction date (generally the date of settlement). Your solicitor or conveyancer will arrange lodgement and payment. Late payment attracts unpaid tax interest at the Bank of Queensland rate plus 8%, compounded daily.
Sources
- Queensland Revenue Office, Transfer Duty Rates, qro.qld.gov.au (current as at July 2026)
- Queensland Revenue Office, First Home Concession, qro.qld.gov.au (effective from 1 May 2025)
- Queensland Revenue Office, First Home Owner Grant, qro.qld.gov.au (2026-27)
- Queensland Revenue Office, Additional Foreign Acquirer Duty, qro.qld.gov.au
- Queensland Government, First Home Buyer Support, qld.gov.au (2026)
This article provides general information only and does not constitute financial, legal, or tax advice. Transfer duty obligations depend on individual circumstances. Consult the Queensland Revenue Office or a qualified conveyancer before making a purchase decision.