On 9 June 2024, the Queensland Government made a significant announcement aimed at
providing further financial relief to first home buyers. The government has decided to
increase the First Home Owner threshold on Stamp Duty, a move that is expected to ease
the financial burden for many aspiring homeowners in the state.
What is Stamp Duty?
Stamp Duty is a tax imposed on property transactions by state and territory governments in
Australia. It is calculated based on the property’s purchase price or its market value,
whichever is higher. For first home buyers, this tax can represent a substantial additional
cost, often making it more challenging to enter the property market.
The current threshold
Before the recent announcement, the First Home Owner Stamp Duty concession in
Queensland applied to properties valued up to $500,000. For properties valued above this
threshold, a concessional rate was applied up to a maximum value of $550,000. Beyond
this, standard Stamp Duty rates were imposed.
The new changes
As of the recent announcement on June 9, 2024, the Queensland Government has
increased the First Home Owner threshold to $700,000, with concessional rates extending
up to properties valued at $800,000. This change is designed to reflect the rising property
prices and to make home ownership more accessible to first-time buyers.
Key points of the announcement
– New Threshold: The Stamp Duty concession now applies to properties valued up to
$700,000, provided your solicitor files the appropriate documents.
– Concessional Rates: For properties valued between $700,000 and $800,000,
concessional rates will apply.
– Implementation Date: The new threshold will apply to contracts signed on or after 9
June 2024.
Implications for First Home Buyers
This increase in the Stamp Duty threshold is a welcome relief for first home buyers in
Queensland. As property prices continue to climb, the higher threshold ensures that more
properties fall within the range of the Stamp Duty concession, reducing the up front costs
associated with purchasing a home.
Example Scenario
Linda and John enter into a Contract dated 1 May 2024 to purchase a property in Pimpama
for $649,000. Under the old scheme their stamp duty on this purchase would be $15,055.00.
If Linda and John entered into the Contract on 10 June 2024 the Stamp Duty would be $nil
as they would be entitled to receive the full concession as the property value is under
$700,000.
It is important to note that the concession does not apply automatically, and that your
conveyancing solicitor will need to prepare and lodge the necessary paperwork to the
Queensland Revenue Office to allow you to receive the concession.
The increase in the First Home Owner threshold on Stamp Duty is a positive step by the
Queensland Government to support first-time buyers. By aligning the concession threshold
with current market conditions, the government is helping make home ownership more
attainable for many Queenslanders. This policy change is expected to have lasting benefits
for both individuals and the broader economy.
Fore more detailed information on how this change might affect your specific circumstances,
please contact the team at Gold Coast City Solicitors and one of our experts will be glad to
assist.
