When buying property in Queensland, transfer duty (also known as stamp duty) is one of the most significant upfront costs to plan for. But what many buyers don’t realise is that some may qualify for a stamp duty exemption in QLD, depending on their situation.
While much of the attention in 2025 has been on QLD stamp duty exemption for first home buyers, there’s a wide range of other scenarios where transfer duty may also be reduced or waived entirely.
In this guide, Unconditional Finance will walk you through the different situations where exemptions may apply in Queensland to help you claim them properly.
1. Life Events & Relationship-Based Exemptions
🪦 Deceased Estate Transfers
If a property is transferred under a will or rules of intestacy (when no will exists), you may be exempt from paying duty, provided it’s done as part of the estate’s distribution.
Example: A parent’s estate is distributed equally to two adult children. The transfer of the property to them is exempt, as long as it follows the estate’s legal distribution path.
If the transfer goes to someone who wasn’t originally listed as a beneficiary, such as when a sibling sells their share to an unrelated party, duty will apply to that part of the transaction. It’s essential to distinguish between an inheritance transfer and a later on-sale.
👩❤️👨 Transfers Between Spouses
You may be eligible for a stamp duty exemption in Queensland when transferring a share of your principal place of residence to your spouse by way of gift, as long as you’ll both co-own the property equally and continue living in it as your home.
Note: This exemption doesn’t apply if the transfer is part of a commercial arrangement, such as a buyout or investment.
Even in situations where the home is owned unequally prior to transfer (e.g. 75/25), transferring a portion to achieve equal co-ownership may still qualify, as long as it’s done as a gift and not linked to consideration (payment).
💔 Divorce or Relationship Breakdown
Transfers made due to divorce or separation may be exempt from stamp duty in QLD, as long as they’re part of a formal court order or financial agreement under the Family Law Act 1975 (or Property Law Act 1974 for de facto couples).
Example: A property transferred under consent orders during a divorce is duty-exempt when specific legal criteria are satisfied.
Transfers under informal agreements, even if amicable, are not exempt. It’s crucial to have orders properly sealed by a court or agreements drafted with legal guidance to avoid unintended duty liability.
2. Charitable & Not-for-Profit Institutions
Registered charitable institutions may claim a transfer duty exemption if the property will be used for:
- Religious, educational, or benevolent purposes
- Full-time care or housing for vulnerable individuals
- Fundraising that supports their primary charitable mission
Example: A registered charity buys a property to use as a disability accommodation centre. The transaction is exempt if usage conditions are met.
Even if the property is rented out temporarily, the exemption may still apply, as long as the rental income is used entirely for qualifying charitable purposes and the charity declares this upfront.
3. Property Title or Tenure-Related Exemptions
🛠️ Correcting a Clerical Error
If a transfer document contains an error, such as a wrong name, property description, or ownership share, you may be able to claim a duty exemption when fixing the mistake.
Example: A property is accidentally transferred to the wrong person due to a clerical error. The correction transfer may be exempt from duty.
Exemptions only apply when the error is genuinely clerical. Strategic changes, such as reassigning ownership for tax or estate planning purposes, aren’t considered mistakes and won’t qualify for this exemption.
🏘️ Changing Ownership Structure
Changing from joint tenants to tenants in common (or vice versa) is exempt from duty, as long as there’s no change to the proportion of ownership between the parties involved.
Example: Two siblings change their holding structure for estate planning, maintaining equal shares. This attracts no transfer duty.
This exemption is often used for asset protection or succession planning. However, it only applies if the change doesn’t affect beneficial ownership, and no financial consideration can be involved.
🏕️ Manufactured Homes
If you’re purchasing a manufactured or mobile home that isn’t tied to land ownership, you may not need to pay any duty, particularly if it’s positioned under a residential park site agreement.
Example: A manufactured home bought for use as a permanent residence in a retirement park may be exempt.
The exemption only applies to the home structure itself, not to any freehold or leasehold land. If the land is also being acquired, separate rules and potential duties may apply.
4. Other Duty-Free Scenarios
Beyond first homes, there are several stamp duty exemptions in QLD for life events, legal structures, or eligible organisations. These typically apply in very specific or technical situations, but they could result in significant savings if you’re eligible:
✅ Cancelled Contracts
You may be exempt from duty if a contract is cancelled and not replaced by another one. This often occurs when conditions aren’t met (such as finance approval or due diligence) and the sale doesn’t go ahead. To qualify, there must be no intention to resell the same property under a new contract between the same parties.
If you’ve already paid stamp duty on the original agreement, you may be able to get a reassessment or refund, as long as you apply within the time limits and provide the right documents.
✅ Transfers to the State
Transfers made for public or community purposes, such as those under the Acquisition of Land Act 1967, are generally duty-free. This can include land acquired for schools, hospitals, conservation zones, or roads.
This exemption only applies to transfers to the Queensland Government or its authorised bodies. Transfers to councils or government-owned corporations may still attract duty.
✅ Indigenous Land Use Agreements
Duty exemptions apply when land is transferred as part of an ILUA, often in exchange for surrendering native title rights. The land must be used for approved residential or traditional purposes (not commercial use).
The exemption is only valid if the use of the land complies with strict conditions for at least 12 months. If this changes, you may need to notify the QRO and could be reassessed.
✅ Corporate Restructures
Duty may be waived when property is transferred between companies in the same corporate group, as part of an internal restructure. This supports business efficiency and avoids penalising companies for rearranging legal ownership within a group.
The rules are strict. Companies need to pass ownership and control tests, and the restructure can’t change who really owns the business in the end.
✅ Small Business Rollovers
Eligible small businesses may restructure by moving assets from a sole trader, partnership, or trust into a company structure without triggering duty. This helps modernise business structures without the financial penalty of double-handling property transfers.
You’ll need to show that the restructure is part of a genuine business transition, not a tax-avoidance scheme. The exemption won’t apply if unrelated parties gain control during the restructure.
✅ Trust Beneficiary Distributions
If a trust gives property to someone listed in the trust deed, the transfer might be duty-free, especially if that person is legally allowed to receive it and there’s no extra payment involved.
Be careful with discretionary or complex trusts. Not all distributions qualify, and additional duty may apply if the transaction isn’t consistent with the trust’s original terms.
Note: Most of these exemptions don’t happen automatically. You’ll need to prepare the right forms, declarations, and proof, usually within a set timeframe.
Engaging a solicitor, conveyancer, or broker with experience in Queensland transfer duty exemptions can help you avoid delays or compliance issues, particularly for more technical cases like trusts or restructures.
How to Claim a Duty Exemption in Queensland
To apply for an exemption, you’ll usually need:
- A Dutiable Transaction Statement (Form D2.2)
- Supporting evidence (e.g. will, court orders, site agreements, certificates)
- Identity details for non-Australian transferees (Form D2.5)
- Form 1 Transfer and Form 24 for property transactions via Titles Queensland
If you’re unsure whether your exemption applies, you can still pay the duty upfront and later request a reassessment with a refund if approved. This approach offers a safeguard for time-sensitive settlements.
Know What You Can Legally Avoid
Transfer duty can add thousands to the cost of buying property, but it’s not always a given. Queensland provides a broad suite of exemptions designed to support people through life changes, family transitions, charitable causes, and structural realignments.
Whether you’re separating from a partner, inheriting a home, or restructuring a business, you could be legally exempt from paying stamp duty, provided your circumstances meet the conditions. Likewise, if you’re planning to buy your first property, learning more about how a first home buyer loan works could provide helpful context as you weigh up costs and potential concessions.
📌 Tip: Keep clear records, apply early, and don’t rely on guesswork. Government rulings can be strict, and deadlines matter.
Ready to see if you qualify? Chat with your broker or legal adviser to check your eligibility and make sure you’re not paying more than you need to.
Frequently Asked Questions (FAQs)
You may not need to pay transfer duty if you’re gifting a share of your principal place of residence to your spouse or de facto partner. To qualify, the property must be your shared home, the transfer must be a gift (not a sale), and you’ll both need to hold equal shares in the property. If you’re unsure whether your situation meets the exemption criteria, it’s a good idea to speak with a solicitor or broker who can walk you through the documentation required.
Not necessarily. The exemption typically applies when a property is transferred as part of the formal estate distribution, such as from a deceased parent to their children. However, if a beneficiary later sells their share to a third party, that sale could trigger transfer duty on the new transaction. It’s important to understand the difference between an estate distribution and a private on-sale, as only the former may be exempt.
It could be possible, depending on how the rental income is used. Registered charitable institutions may be exempt from transfer duty if the property supports their core mission. Even if the property is rented temporarily, the exemption may still apply if the income is used entirely for charitable purposes. The Queensland Revenue Office requires clear documentation upfront, so charities should prepare a detailed usage statement when applying.
If the mistake is purely clerical, such as the wrong name, title reference, or ownership percentage, you may be able to correct it without paying extra duty. However, if the changes alter the financial or beneficial ownership, then the duty could still apply. Queensland’s transfer duty rules are strict, so it’s worth getting legal advice before submitting your correction documents.
Yes, in some cases. Queensland does offer exemptions for small business restructures, such as when a sole trader moves assets into a company, and for trust property distributions made in line with trust deeds. These exemptions aren’t automatic. You’ll need to meet eligibility criteria and submit detailed paperwork. A tax adviser or broker familiar with duty exemptions can help you navigate the requirements and timing.
