Disposal and its effect on your concession
If you claimed a transfer duty concession for homes and wish to keep the concession in full, you can’t dispose of part or all of the property before moving in or within 12 months of when you first occupy it. For transfer duty purposes, ‘dispose’ means lease, sell, transfer or otherwise grant another person exclusive possession to the property or part of it.
Common examples of disposal
Here are some common examples of when you could dispose:
- You grant a lease extension to an existing tenant before moving in.
- You lease out a room within 12 months of moving in.
- You sell or transfer part of your interest in the property within 12 months of moving in.
- Within a few months of moving in, you lease out your home using an online accommodation sharing platform (e.g. Airbnb, Booking.com, Stayz) while you take holidays.
- An existing tenant continues to live in the home after their lease expires or for more than 6 months after settlement, whichever comes earlier.
- A previous owner does not move out within 6 months.
But you will not dispose if you transfer an interest in your home to your spouse by way of gift and that transaction is assessed as exempt.
Demolishing a home
Although demolishing a home is not a form of disposal, you will lose a transfer duty concession if you knock down the existing home before living there as your principal place of residence. Even if you eventually live on the property after rebuilding, you will not be able to keep any concession that you have claimed.
Your obligations if you are no longer eligible for a concession
If you have claimed the concession and no longer meet the eligibility requirements, you must notify us within 28 days by completing a notice for reassessment (Form D2.4). You might not lose the concession if you can’t occupy the home because of an intervening event, but you still need to notify us. You can either:
After a reassessment, you may have to pay more transfer duty. You may also have to pay unpaid tax interest and penalty tax, depending on your circumstances. This will be explained on your reassessment notice if you receive one.
- Find out about the changes that affect land tax exemptions, such as selling your land.
- Learn the requirements to keep home concessions and the Queensland First Home Owners' Grant.