Australian Lending Compare

Queensland Stamp Duty 2026-27: How the New-Build First-Home Exemption Rewrites Your Loan Maths

For a first-home buyer in Queensland purchasing a brand-new house or vacant land to build on in 2026-27, the transfer duty bill can be zero — with no upper price limit on the property. That single change, in effect since 1 May 2025, rewrites the loan maths: every dollar that would have gone to the State Government stays in your deposit, lowers your loan-to-value ratio, and can shrink or eliminate the Lender’s Mortgage Insurance premium. If you are buying an established home instead, full stamp duty relief cuts out at $700,000 and phases to zero by $800,000. Above those thresholds the general scale applies, climbing to 5.75% on the portion over $1 million. Add the First Home Owner Grant of $30,000 for new homes under $750,000, remove the 8% foreign acquirer duty if it does not apply to you, and your funds-to-complete figure looks very different from the sticker price. The numbers below are drawn from Queensland Revenue Office scales and APRA serviceability rules as they stand in July 2026.

What is the Queensland transfer duty scale for 2026-27 — and what does it do to your cash-to-complete?

Queensland’s general transfer duty rates are progressive, meaning you pay a different rate on each slice of the purchase price. For a home that attracts the full general rate in 2026-27, the scale is:

  • Up to $5,000 — nil.
  • $5,000 to $75,000 — 1.5% of that portion.
  • $75,000 to $540,000 — $1,050 plus 3.5% of the amount above $75,000.
  • $540,000 to $1,000,000 — $17,325 plus 4.5% of the amount above $540,000.
  • Over $1,000,000 — $38,025 plus 5.75% of the amount above $1,000,000.

Every dollar of duty you pay is a dollar that cannot sit in your deposit. For a $900,000 established home that does not qualify for a first-home concession, the duty is $17,325 plus 4.5% of $360,000, which works out to $33,525. That sum pushes up your cash-to-complete and, if you are trying to keep your loan-to-value ratio at or below 80% to avoid Lender’s Mortgage Insurance, it forces a larger genuine savings contribution. When a lender plugs your application into its serviceability test — using the product rate plus APRA’s 3.0 percentage-point buffer — a higher duty figure does not directly reduce your borrowing capacity, but it does consume cash that could otherwise shrink the loan size. For anyone sitting near a debt-to-income ratio of six, where APRA’s 20% portfolio cap on new high-DTI lending adds another layer of scrutiny, every basis point of deposit matters.

How does the no-price-cap new-build exemption work — and who qualifies?

Since 1 May 2025, a first-home buyer in Queensland who purchases a brand-new home or vacant land on which they will build a home pays zero transfer duty, with no maximum property value. The exemption is not means-tested by income, and it applies to the full dutiable value of the transaction — a $1.2 million new house-and-land package attracts the same nil duty as a $550,000 off-the-plan apartment, provided the buyer meets the definition of a first-home buyer and occupies the property as their principal place of residence within the required timeframe.

This changes the loan quote in two practical ways. First, the funds-to-complete line on your approval falls by the amount that would otherwise be payable under the general scale. On a $1.2 million purchase, that is $38,025 plus 5.75% of $200,000 — a saving of $49,525. Second, because the cash you bring to settlement is lower, your deposit as a percentage of the purchase price rises for the same amount of savings, which can push your LVR below an 80% or 60% threshold and reduce or remove the LMI premium. A licensed Arrivau mortgage adviser can model exactly how that saving shifts your assessed repayments under the APRA buffer.

The exemption covers new homes, off-the-plan purchases, and vacant land intended for construction. It does not cover established homes, and it does not exempt a buyer from the foreign acquirer duty surcharge if that applies. The buyer must be an Australian citizen, permanent resident, or in some cases a New Zealand citizen holding a special category visa, and must not have previously owned residential property in Australia.

What about established homes — how far does the concession stretch?

For an existing home, Queensland’s first-home concession operates on a sliding scale. The purchase price must be $800,000 or less to receive any benefit. At $700,000 and below, the duty is fully exempt. Between $700,000 and $800,000, the concession tapers, so the duty payable increases as the price rises, reaching the full general rate at $800,000.

This means a first-home buyer looking at an established property priced at $750,000 will pay some duty — and the exact amount matters for the loan quote. The general duty on $750,000 is $17,325 plus 4.5% of $210,000, or $26,775. The concession reduces that figure, but the residual duty still needs to be funded at settlement. If your deposit is tight, that residual can be the difference between an 80% LVR and an 82% LVR, triggering LMI and potentially pushing your application into a higher risk-weighted category when the lender runs the APRA serviceability buffer. A buyer who can stretch to a new build at the same price point, by contrast, pays no duty and keeps the full deposit intact.

How does the $30,000 First Home Owner Grant fit into the loan picture?

Queensland’s FHOG is $30,000 for eligible first-home buyers who purchase or build a brand-new home valued at less than $750,000. The grant is paid after settlement or completion, so it does not directly reduce the funds you need on settlement day. However, many lenders will treat a confirmed FHOG entitlement as part of your genuine savings or as a credit against the loan amount when calculating your deposit and LVR. That treatment can lift your effective deposit by $30,000, which on a $700,000 purchase is more than four percentage points of LVR — enough to cross an 80% threshold and avoid LMI entirely.

The grant is only available for new homes. It cannot be used for established properties, and it does not apply to investment purchases. Combined with the no-cap new-build duty exemption, a first-home buyer purchasing a new home under $750,000 can receive both the $30,000 grant and a nil duty assessment, which together represent a substantial reduction in the upfront capital required. The effect on the loan quote is a lower loan amount for the same property, a lower LVR, and lower assessed monthly repayments under the APRA buffer calculation.

What is the foreign acquirer duty surcharge, and when does it apply?

Queensland imposes an Additional Foreign Acquirer Duty of 8% on top of the general transfer duty when residential property is acquired by a foreign person, including temporary residents and foreign companies or trusts. The surcharge is calculated on the full dutiable value and is payable at settlement. It cannot be offset by the first-home new-build exemption — a foreign buyer who qualifies as a first-home buyer would still pay the 8% surcharge, even though the base duty is zero.

For a foreign purchaser buying a $900,000 new home, the base duty would be nil under the first-home exemption, but the AFAD would be $72,000. That figure must be funded from cash at settlement, and it directly increases the funds-to-complete. Lenders typically will not capitalise the surcharge into the loan, so it acts as an additional deposit requirement. The surcharge also applies to established homes and investment properties, and it sits outside the FHOG and concession frameworks. If you are uncertain about your residency status for duty purposes, an Arrivau mortgage adviser can help you confirm how the surcharge will appear on your loan quote before you sign a contract.

How does the Queensland stamp duty maths interact with APRA’s 3% buffer and DTI cap?

The APRA serviceability buffer requires lenders to assess your ability to repay at the product rate plus 3.0 percentage points. That assessment rate is applied to the loan amount, not the purchase price, so anything that reduces the loan amount — such as a nil duty assessment or a FHOG credited against the loan — lowers the assessed monthly repayment. A $30,000 smaller loan at a 9% assessment rate saves roughly $2,700 per year in assessed repayments, which can be the margin that keeps your application inside the lender’s serviceability threshold.

The debt-to-income cap, effective since February 2026, limits new lending at a DTI of six or above to 20% of each lender’s portfolio. A lower loan amount, achieved by minimising duty and maximising grants, reduces your DTI numerator. For a couple earning $160,000 combined, a loan of $640,000 sits at a DTI of exactly four, well clear of the cap. The same couple borrowing $700,000 hits a DTI of 4.375 — still below six, but with less headroom if interest rates rise or other debts appear. By eliminating duty on a new build, the Queensland exemption can keep the loan size lower and the DTI more comfortable, which matters in a market where lenders are managing their high-DTI allocations carefully. For a deeper look at how the buffer and DTI cap set your ceiling, see Borrowing Power 2026: How APRA’s 3% Buffer and the DTI Cap Set Your Loan Ceiling.

How does Queensland compare with NSW and Victoria on first-home stamp duty?

The policy contrast is sharpest on new builds. Queensland’s no-price-cap exemption for new homes and vacant land is more generous than the NSW scheme, where the full exemption for existing and new homes cuts out at $800,000 and phases to $1,000,000, with the FHOG capped at $10,000 for new homes under $600,000. A Queensland first-home buyer purchasing a new home at $950,000 pays zero duty; the same buyer in NSW would face a duty bill under the general scale — $11,602 plus 4.5% of the amount above $387,000 — and no FHOG. The NSW numbers are detailed in NSW Stamp Duty 2026-27: What It Adds to Cash-to-Complete and Takes From Your Deposit.

Victoria’s first-home exemption is full to $600,000 and phases out at $750,000, with the FHOG at $10,000 for new homes under $750,000. A Victorian buyer at $950,000 gets neither duty relief nor the grant, and faces $2,870 plus 6% of the excess over $130,000 under the $130,001–$960,000 tier — a $52,070 impost. The Victorian framework is unpacked in Victoria Stamp Duty 2026-27: The Duty, Deposit and LVR Maths Before You Borrow. For a borrower trying to size a loan across state lines, the duty differential alone can shift the required deposit by tens of thousands of dollars.

Data basis, sources, and timing — what underpins this article

The duty scales, thresholds, concession rules, FHOG amount, and AFAD rate in this article are drawn from the Queensland Revenue Office as published for the 2026-27 financial year, as at July 2026. The APRA serviceability buffer of 3.0 percentage points was confirmed as current by APRA in May 2026, and the DTI portfolio cap has been in effect since February 2026. The tax, HELP repayment, and Medicare Levy figures referenced in comparisons come from the Australian Taxation Office rates for 2026-27. All state-specific comparisons use Revenue NSW, State Revenue Office Victoria, and other state revenue authority data as at July 2026. Policy details — including the 1 May 2025 effective date for Queensland’s no-cap new-build exemption — are as published by the Queensland Government and confirmed on the Queensland Revenue Office website. Where official sources are silent on a future change, the article treats the current published position as the operative rule.

FAQ

Does the Queensland new-build first-home exemption apply to off-the-plan apartments? Yes. An off-the-plan purchase of a new apartment qualifies as a new home for the purposes of the exemption, provided the buyer is a first-home buyer and will occupy the property as their principal place of residence. The exemption applies to the full dutiable value with no price cap.

Can I get both the $30,000 FHOG and the nil duty exemption on the same purchase? Yes, if the property is a brand-new home valued at less than $750,000. The FHOG and the new-build duty exemption are separate entitlements and can be claimed together. Above $750,000, the FHOG drops away but the duty exemption remains.

What happens if I buy an established home for $720,000 — do I pay full duty? No. The established-home concession provides full exemption at $700,000 and a partial concession that tapers to zero at $800,000. At $720,000 you will pay some duty, but less than the general scale. A licensed Arrivau mortgage adviser can calculate the exact residual duty and its effect on your funds-to-complete.

Does the 8% foreign acquirer duty apply to permanent residents? No. Australian citizens and permanent residents are not foreign persons for the purpose of the AFAD. Temporary residents, foreign companies, and foreign trusts generally are. If your residency status is complex, confirm it with the Queensland Revenue Office before exchanging contracts.

How quickly can I get a loan quote that factors in the Queensland duty exemption? Once you provide your financial details and property information, a licensed Arrivau mortgage adviser can prepare a loan quote that reflects the applicable duty, grant, and surcharge rules, with an indicative response within one business day.

Where to Go From Here

Policy settings tell you the size of the cheque you need at settlement; they do not tell you whether the loan behind it actually works. If you want the duty, deposit, LMI and assessed repayment modelled together against your real income and commitments, a licensed Arrivau mortgage adviser can review your position and come back to you within one business day.

This article is general information only and does not constitute financial, tax or legal advice. Rates, thresholds and eligibility rules change. Confirm your own position with the ATO, the relevant state or territory Revenue Office, or a licensed adviser before acting.