A worked example
Jess is buying her first established home in Brisbane for $625,000. She's an Australian citizen, will live in the property, and has never owned property before.
Queensland transfer duty on an established home uses a tiered scale. For a $625,000 purchase the full-rate duty works out to around $14,050 (home concession rate for owner-occupiers).
Since 9 June 2024, first home buyers in Queensland get a full exemption on established homes up to $700,000, with a tapered concession between $700,000 and $800,000. At $625,000, Jess pays $0 transfer duty.
If she were buying a new home or vacant land, the rules are even more generous: from 1 May 2025, eligible first home buyers pay no transfer duty on new homes or vacant land at any price, no cap. On top of that, the Queensland First Home Owner Grant pays $30,000 for eligible new home contracts signed between 20 November 2023 and 30 June 2026.
State-by-state differences
- NSW: Transfer duty rates go up to 5.5% on amounts over $3.3 million. First home buyers get full exemption up to $800,000 and concessions to $1,000,000. Foreign buyers pay an 8% surcharge.
- VIC: Duty reaches 6.5% on amounts over $2 million. First home buyers receive full exemption up to $600,000 and concessions to $750,000. Foreign buyer duty surcharge is 8%, plus an annual absentee owner land tax of 4%.
- WA: Top rate is 5.15% on amounts over $725,000. First home buyers on new builds under $430,000 pay no duty; established homes under $430,000 get $19,665 off. Foreign buyers pay 7% surcharge.
- SA: Duty peaks at 5.5% over $1.2 million. First home buyers get full exemption on homes up to $650,000. Foreign buyer surcharge is 7%.
- TAS: Top rate is 4.5% over $725,000. Concessions available for first home buyers on properties under $600,000.
- ACT: Uses a different conveyance duty structure with rates up to 5.54%. First home buyer concessions apply on properties under $1.2 million.
- NT: Top rate is 5.95% over $3 million. First home owner discount of up to $18,601 for properties under $650,000.
Common mistakes people make
- Assuming the first home concession is automatic. You need to apply for it through the transfer document lodged with the Queensland Revenue Office. If you don't claim it at settlement, you'll pay full duty and need to apply for a refund later, which takes months.
- Thinking the First Home Concession and First Home Owner Grant are the same thing. The concession reduces or eliminates transfer duty on any home. The grant is a separate $30,000 payment (for contracts signed between 20 November 2023 and 30 June 2026) for new or substantially renovated homes under $750,000, and you must apply through the Office of State Revenue within 12 months of settlement.
- Forgetting about the foreign buyer surcharge when buying with a non-resident partner. If even one person on the title is a foreign purchaser, the 7% additional foreign acquirer duty (AFAD) applies to the entire purchase price. A couple buying a $600,000 home pays an extra $42,000, even if only one partner is a non-resident.
- Using the purchase price instead of the dutiable value. You pay duty on whichever is higher: the purchase price or the market value. If you buy from family for $400,000 but the property is worth $550,000, you pay duty on $550,000.
What this calculator doesn't account for
This calculator shows standard transfer duty for straightforward property purchases. It doesn't account for off-the-plan purchases where you might pay duty on instalments, or properties transferred as part of a deceased estate (which may be exempt). It doesn't factor in properties held in discretionary trusts, which are charged at the trustee rate (currently the top individual rate with no threshold-free amount).
The calculator won't tell you about home concession declarations required if you're claiming vacant land as your future home, or special duty rates for primary production land. If you're buying a business that includes property, or acquiring units in a unit trust that holds land, different duty provisions apply. Corporate reconstructions and transfers between related companies also sit outside this calculator's scope.
Edge cases and nuances
If you buy a property off-the-plan with staged payments, duty is calculated on the contract price but you may be able to pay duty in instalments as you make progress payments. You need to apply to the Commissioner for this arrangement before settlement.
Australian permanent residents who've been overseas for more than five of the last eight years may be treated as foreign buyers for AFAD purposes. The test is whether you were ordinarily resident in Australia - simply holding a valid visa isn't enough.
Buying with your SMSF triggers trustee rates, which means duty is calculated at the highest marginal rate from the first dollar. On a $500,000 property, that's roughly $23,000 instead of around $9,000 for an individual buyer.
If you're buying a property that includes a business (like a cafe with residential premises above), the Queensland Revenue Office will apportion the contract price between land and business assets. You only pay transfer duty on the land component, but they'll use valuations to split it if the contract doesn't specify separate amounts.
Properties in flood-affected areas or with contaminated land designations still attract full duty based on market value, even if you're paying less due to those issues.
