What Is The QLD Stamp Duty Concession For First Home Buyers?
Buying your first home can be an exciting and daunting experience, with many expenses to consider. One of the most significant expenses is the stamp duty, which is a tax charged by state governments on property transactions. However, if you’re a first home buyer in Queensland, you may be eligible for a stamp duty concession. In this blog, we’ll explain what the QLD stamp duty concession for first home buyers is, who is eligible and how much you can save.
What is the Stamp Duty Concession?
The QLD stamp duty concession for first home buyers is a scheme introduced by the Queensland government to assist eligible first home buyers in purchasing their first home. The scheme provides a partial or complete exemption from stamp duty, depending on the value of the property being purchased. This concession applies to both established homes and newly built homes.
What Is The Criteria For The Stamp Duty Concession As A First Home Buyer?
To be eligible for the QLD stamp duty concession for first home buyers, you must meet certain criteria. These include being a natural person, rather than a company or trust. You must also be at least 18 years old and have never owned a residential property in Australia. Additionally, you must be buying a home with a dutiable value of less than $550,000. If the property value is between $550,000 and $650,000, you may still be eligible for a partial concession.
It’s important to note that the concession only applies to the purchase of your principal place of residence. If you’re buying an investment property, you won’t be eligible for the concession.
How Much Can I Save On Stamp Duty?
The amount you can save on stamp duty as a first home buyer in QLD depends on the value of the property you’re buying. If the property value is less than $500,000, you may be eligible for a full concession. This means you won’t have to pay any stamp duty. If the property value is between $500,000 and $549,999, you may be eligible for a partial concession, which reduces the amount of stamp duty you have to pay. For properties valued between $550,000 and $650,000, the concession amount decreases on a sliding scale.
For example, if you’re buying a property valued at $400,000, you won’t have to pay any stamp duty, saving you around $8,750. If you’re buying a property valued at $525,000, you’ll receive a partial concession, which can save you around $10,175.
Combining With Existing First Home Buyer Grants & Schemes
In addition to the QLD stamp duty concession, first home buyers in Queensland may also be eligible for other grants and schemes, such as the First Home Owner Grant (FHOG) and the Home Builder grant. The FHOG is a one-off payment of $15,000 towards the purchase of a new home or a substantially renovated home. The Home Builder grant is a $25,000 grant available for eligible owner-occupiers who are building a new home or substantially renovating an existing home.
If you’re eligible for both the stamp duty concession and these grants, you can combine them to reduce the overall cost of buying your first home. For example, for a new home valued at $550,000, you could receive a full stamp duty concession of around $15,925 and a FHOG of $15,000, reducing the total cost of buying your home by $30,925.
The QLD stamp duty concession for first home buyers is an excellent initiative by the Queensland government to help eligible first home buyers purchase their first home. If you’re a first home buyer in Queensland, make sure you check your eligibility for the stamp duty concession, as well as other grants and schemes that may be available to you.