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Home concession

You can claim a home concession for transfer duty when acquiring a residence, as long as you meet certain requirements. If you are eligible, you will pay a reduced amount, saving you up to $7,175.

Unlike the first home concession, you can claim the home concession even when you have owned a home before.

The home concession rate applies to the first $350,000 of the consideration or value of the residence, and the general transfer duty rates then apply to the balance.

You do not have to be an Australian citizen or permanent resident to claim a concession, but you must meet the eligibility criteria. Additional foreign acquirer duty may apply if you are a foreign person.

Eligibility

To claim a home concession when you buy or acquire a home, you must:

  • move into it with your personal belongings and live there on a daily basis within 1 year of settlement (this time cannot be extended)
  • not dispose (sell, transfer, lease or otherwise grant exclusive possession) of all or part of the property before you move in.

To keep the benefit of the home concession in full after you move in, you must not dispose of all or part of the property within 1 year. A partial concession may apply if you dispose within 1 year.

Use our home concession eligibility tester to find out if you are eligible to claim the home concession or first home concession.

For more information, read the public ruling on occupancy requirements for homes and first homes (DA085.1).

Two or more acquirers

Provided you qualify, you can claim a home concession on your interest (or share), whether or not other acquirers also qualify for a home concession or first home concession.

Existing tenants or previous owners

Any existing tenants must move out when their lease expires or within 6 months of settlement, whichever is the earlier, for you to stay eligible for the concession. Previous owners who continue to stay in the property must also move out within 6 months.

Demolishing the home

The home concession will not apply if you demolish the existing home without first living there, even if you construct and occupy a new home within a year.

Examples

An architect purchases an old house on a block of land. The old house will be removed so that a new house can be built. For convenience, the architect stays in the house over a weekend while he removes some fittings. He plans to continue living in a leased apartment while the new house is built.

The architect is unable to claim the home concession as he didn’t make the house his principal place of residence before demolishing it.

A couple buys a house, moves in and lives there after enrolling their child in a local day care centre. They update their electoral roll, driver licence and myGov details. After living there continuously for 3 months, they decide to rebuild. They move out and arrange for the house to be demolished.

They have resided in the property and made it their principal place of residence. Provided they do not sell, transfer, lease or otherwise grant exclusive possession within the first year of occupying the property, they are able to retain the full benefit of the concession even though the original house was demolished.

How much you will pay

You can also use the transfer duty estimator or rates for home concessions to find out how much duty you may have to pay when you buy your home.

The concession doesn’t apply to any part of the land that’s used for non-residential purposes. To find out more, read the public ruling on the residential purposes for the transfer duty concession for homes and first homes (DA087.1).

If there’s a non-residential part of the land, use the transfer duty calculator to check the amount you will pay.

Calculation example

Dutiable value of home $550,000
Concessional transfer duty on first $350,000 $3,500
Transfer duty on balance ($200,000) $7,100
Total transfer duty $10,600
(Without the home concession, the transfer duty would be $17,775.)

How to claim

Complete the following forms and include them with your contract, and valuation (if required), when lodging them for stamping:

For help completing the Titles Queensland forms, read part 1 (transfer) of the Land title practice manual and the guide to Form 24.

When lodging documents, make sure you include a covering letter with your name, address and details of what you have lodged. If you also give us an email address or mobile number, we will confirm when we’ve received your documents.

Find out more about lodging and stamping your documents.

Claiming after the transfer

If you’re unsure that you will meet the concession requirements, you can pay duty at the full rate when your documents are assessed and then claim the concession later if you have met, or will meet, the requirements. You just need to lodge the forms and documents with us.

You can also do this if you didn’t claim a concession when you acquired the home because you weren’t going to occupy it, but then you decide to move in.

In either case, we will reassess your duty at the concessional rate and refund the balance of your original payment.

Find out about applying for a reassessment.

Obligations after you claim

You must notify us by completing a notice for reassessment (Form D2.4) (also available as a PDF) if you:

  • don’t move into the residence within 1 year of settlement
  • dispose of the residence before moving in, or within 1 year of moving in
  • demolish the existing home without first living there.

Read more about common reasons for reassessment to find out about a reassessment of your transfer duty concession and what documents you need to lodge.

After a reassessment, you may have to pay a transfer duty liability. You may also have to pay unpaid tax interest and penalty tax, depending on your circumstances.