ByLawyers News and Updates

First home – WA

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First home owner and off-the-plan duty changes

Changes have been introduced to the value caps for vacant land and established homes in WA that qualify for the first home owner concessional rate of duty, along with measures to extend and expand the off-the-plan duty concession.

The changes apply to transactions entered into from 21 March 2025.

RevenueWA expects to configure its systems to apply the new rates in early May 2025. Any eligible transactions entered into on or after 21 March 2025 that settle before the changes are implemented can be reassessed for a refund of duty after settlement.

Transfer duty – First home

First home owners buying an established or new home, or buying vacant land and then entering onto a contract to build a home on it and receiving a first home owners grant, can apply to be assessed at the first home owner rate of duty.

When the unencumbered value of a first home in Perth and Peel is:

  • up to $500,000 – no duty is payable;
  • between $500,001 and $700,000 – $13.63 per $100, or part thereof, above $500,000 is payable;
  • over $700,000 – full duty is payable, and no reduced rate applies.

When the unencumbered value of a first home in regions outside Perth and Peel is:

  • up to $500,000 – no duty is payable;
  • between $500,001 and $750,000 – $11.90 per $100, or part thereof, above $500,000 is payable;
  • over $750,000 – full duty is payable, and no reduced rate applies.

When the unencumbered value of vacant land purchased by an eligible first home buyer anywhere in WA, is:

  • up to $350,000 – no duty is payable;
  • between $350,001 and $450,000 – $15.39 per $100, or part thereof, above $350,000 is payable;
  • over $450,000 – full duty is payable, and no reduced rate applies.

Off the plan duty concession

For new off-the-plan homes within strata developments:

  • the expiry date of the existing duty concession is extended from 30 June 2025 until 30 June 2026;
  • no duty is payable for dwellings purchased before construction has commenced up to $750,000, with a 50% duty concession for properties valued above $850,000; and
  • a 75% duty concession is available for dwellings purchased while under construction up to $750,000, with a 37.5% duty concession for properties valued above $850,000.

This applies to all dwellings within strata and community title schemes, including townhouses and villas, not just multi-tiered developments.

Publication updates

The By Lawyers Purchase of Real Property (WA) guide has been updated, including the commentary and the Retainer Instructions – Purchase of Real Property.

 

Revenue measures – QLD

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The Revenue and Other Legislation Amendment Act 2024 (QLD) made a number of changes to state government revenue measures.

Affected revenue measures include transfer duty concessions, the First Home Owner Grant, the surcharge rate of land tax, and additional foreign acquirer duty.

Transfer duty concession changes – From 9 June 2024

Eligibility for the first home concession has been extended to homes with a dutiable value up to $800,000 with no duty payable on homes valued up to $700,000 and a partial concession for homes between $700,000 and $800,000.

Eligibility for the first home vacant land concession has been extended to land valued up to $500,000 with no duty payable on land valued up to $350,000 and a partial concession for land valued between $350,000 and $500,000.

First Home Owner Grant changes

The First Home Owner Grant and Other Home Owner Grants Act 2000 (QLD) has been retrospectively amended from 20 November 2023 to increase the amount of the First Home Owner Grant for eligible transactions entered into between 20 November 2023 and 30 June 2025.

For buying or building a new house, unit, or townhouse, the grant amount is:

  • $30,000 for contracts signed between 20 November 2023 and 30 June 2025, both dates inclusive.
  • $15,000 for contracts signed before 20 November 2023.

For owner-builders, the grant amount is:

  • $30,000 where foundations are laid between 20 November 2023 and 30 June 2025, both dates inclusive.
  • $15,000 where foundations were laid before 20 November 2023.

Surcharge rate of land tax – From 30 June 2024

The surcharge rate of land tax applied in addition to land tax rates for foreign companies and trustees of foreign trusts, and absentees, has increased from 2% to 3%. Ex gratia relief continues to be offered for Australian-based foreign entities whose commercial activities make a significant contribution to the Queensland economy and community.

Additional foreign acquirer duty (AFAD) – From 1 July 2024

The rate of additional foreign acquirer duty has increased from 7% to 8%.

By Lawyers updates

By Lawyers Conveyancing (QLD) publications updated to reflect these changes to revenue measures include:

QLD – Office of State Revenue amendments

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First Home Buyer Grant

The First Home Buyer Grant of $20,000 has been extended to 31 December 2017.

Land tax

An ‘absentee surcharge’  introduced from the 2017-2018 financial year. A 1.5% surcharge will be imposed on individuals not ordinarily residing in Australia and who are liable for land tax.

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