Queensland Stamp Duty Exemption: What First Home Buyers Need to Know

Many first home buyers in Queensland are finding it harder to afford a home. With rising property prices, high deposit requirements, and hefty upfront costs like stamp duty, the financial hurdles have been challenging. Some have had to delay their plans, while others struggle to save enough for both a deposit and taxes.

But things may be about to change.

Starting 1 May 2025, the ‘no stamp duty’ rule in QLD means eligible first home buyers purchasing new homes or vacant land may no longer have to pay stamp duty. This policy change could make homeownership more attainable, easing one of the biggest financial barriers for first-time buyers.

If you’re unsure where to start, Unconditional Finance can guide you through your options, helping you maximise available grants and exemptions while securing the right home loan for your needs.

What Is Stamp Duty and Why Is It Important?

Stamp duty is a tax paid once when buying a home or land. The amount varies depending on:

• The purchase price of the property
• Whether the buyer qualifies for exemptions or concessions
• Stamp duty rules depend on the state or territory where the property is bought.

For first home buyers in Queensland, stamp duty has traditionally been one of the largest upfront costs, sometimes adding tens of thousands of dollars to the final purchase price. Removing this tax may make it easier for first-time buyers to afford a home.

How Does Queensland’s Stamp Duty Waiver Work?

From 1 May 2025, the Queensland stamp duty exemption applies to first home buyers who:

• Purchase a brand-new home (not an existing property)
• Buy vacant land to build their first home
• Buyers must plan to live in the home as their main residence
• Sign a contract on or after 1 May 2025

What If You’re Buying with Someone Else?

• If both buyers are first home buyers, the full stamp duty exemption applies.
• If one buyer is not a first home buyer, stamp duty applies to their share of the property at standard or concessional rates.

What If the Property Has Mixed Uses?

• If the land includes additional residences or non-residential portions, stamp duty may still apply to those sections of the property.

This exemption removes the previous price cap on first home buyer stamp duty concessions, meaning all qualifying new homes and land purchases—regardless of value—are now exempt.

Does the Stamp Duty Exemption Apply If You Already Own Land?

A key question for first-home buyers is: Does this exemption apply if you already own land but haven’t built on it yet?

The Queensland stamp duty exemption only applies to land purchases made on or after 1 May 2025. This means that if you bought vacant land before this date, you would have already paid stamp duty under the existing rules. However, if you sign a contract for land purchase after May 2025, you won’t pay any stamp duty on it.

For buyers who purchased land before May 2025 but are planning to build afterward, the exemption won’t apply retroactively to refund stamp duty already paid. However, those buyers may still qualify for the First Home Owner Grant ($30,000) or other incentives when they proceed with construction.

How Much Could First Home Buyers Save?

The amount saved will depend on the property’s purchase price. Previously, first home buyers paid stamp duty on properties over $500,000, with the concession phasing out completely for homes above $800,000. With the new exemption, savings could be substantial:

For many first-home buyers, this removes one of the biggest financial barriers to entering the property market.

How Will This Impact the Queensland Property Market?

Removing stamp duty could lead to several market changes for first-home buyers, such as:

• More first home buyers could enter the market – Lower upfront costs may encourage some renters to consider homeownership.
• Boost in new home construction – Increased demand could drive more development projects, benefiting builders and developers.
• Potential price increases – As competition for new homes and land rises, prices may follow.

Will Property Prices Rise Due to Higher Demand?

One major concern is whether the savings from the Queensland stamp duty exemption will be outweighed by rising home prices.

• More first home buyers = More demand for new builds
• More demand = Higher prices for land and construction
• Higher prices = Reduced affordability in the long run

Developers and landowners may adjust their pricing strategies in response to changing demand. Some could raise prices, while others might offer package deals and incentives to attract buyers.

Developer Pricing Strategies

1. Price Adjustments – Developers may increase prices as demand surges.
2. Incentives & Deals – Some developers may offer discounts or bonus features to attract buyers.
3. Construction Costs – Rising demand could lead to higher labour and material costs, which may push prices up further.

Will This Reduce the Affordability Benefit?

1. Short-term affordability boost: Early buyers will likely see the biggest savings before prices adjust to increased demand.
2. Long-term price growth: As more buyers enter the market, land and home prices could rise, reducing affordability over time.
3. Government action possible: If demand drives up prices too quickly, the government may introduce further housing policies or incentives to balance affordability.

Other First Home Buyer Incentives in Queensland

The stamp duty exemption is just one of several government initiatives aimed at helping first home buyers. Others include:

1. First Home Owner Grant ($30,000)

• Increased from $15,000 to $30,000 in November 2023
• Available for new home purchases or vacant land to build a home
• Can be combined with the stamp duty waiver for even greater savings

This grant provides financial assistance that could help first-home buyers with part of their deposit, construction costs, or additional expenses like legal fees and moving costs. When combined with the stamp duty exemption, buyers could save tens of thousands of dollars, significantly lowering their financial entry barriers. 

However, as this grant only applies to new homes, those looking to buy established properties won’t benefit from it, making it essential to plan accordingly.

2. First Home Guarantee Scheme

• Eligible first-home buyers may be able to buy a home with only a 5% deposit
• No Lenders Mortgage Insurance (LMI) required, saving thousands
• Can be used for both new and existing homes

By eliminating the need for LMI, this scheme can save first-home buyers up to $30,000, depending on the property price. It’s particularly valuable for those struggling to save a 20% deposit while still allowing them to enter the market sooner. 

However, there are income and property price caps, so buyers should check their eligibility before relying on this scheme.

3. Subletting Relief for First Home Buyers

• Since December 2024, first-home buyers can rent out part of their home within the first year without losing their stamp duty concessions

Previously, subletting any part of the property in the first year could result in losing stamp duty concessions and grants, discouraging many buyers who needed extra income. 

With this reform, buyers can now offset mortgage repayments by renting out a spare room or granny flat while still keeping their full benefits. This could be particularly useful for single-income buyers or those purchasing larger properties that might otherwise be unaffordable. 

By leveraging these incentives strategically, first-home buyers may be able to reduce upfront costs, improve borrowing power, and enhance their ability to afford homeownership over time. However, as some schemes have strict eligibility criteria and funding limits, it’s crucial to plan ahead and apply early to maximise the benefits.

Final Thoughts: A Game-Changer for First Home Buyers

The ‘no stamp duty’ rule in QLD could make it easier for thousands of first home buyers to enter the property market by removing one of the biggest upfront costs.

Here’s how you can get started:

1. Research new homes or land options
2. Look into additional grants and incentives
3. Speak to a mortgage broker to check your eligibility and get pre-approved

This policy change could open more doors for first home buyers looking to secure their first property. If you’ve been waiting for the right time, this might be your best opportunity yet.

By planning ahead, securing financing, and exploring available grants, you could step into homeownership with significantly lower upfront costs. But as demand increases, competition may rise—so acting early could put you in a stronger position.

Want to know if you qualify? Reach out to a mortgage broker today to check your eligibility, explore government incentives, and get pre-approved for a home loan.