Transfer Duty implications (QLD) if you dispose of your owner occupier property too soon!

In this video we explain Transfer Duty implications if you dispose of your owner occupier property too soon. This applies to QLD Property (Real Estate).

This blog/video is for you if you want to learn about what happens if your circumstances change and you “dispose” of your property within a concession period. 

This means: lease, transfer, sublease, sell, airbnb or even grant someone else exclusive possession of your property! 

This video is great for - QLD property owners, real estate agents & mortgage brokers who want to know more about QLD Transfer (stamp) Duty and how clients can end up in hot water…

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Hi everybody - George Sourris, Empire Legal.

Today’s topic: Transfer Duty implications if you dispose of your owner occupier property too soon.

What does disposing of your property mean for the concession?

In Queensland, when you obtain a transfer duty concession for HOME or FIRST HOME, you undertake not to “dispose” of any part of the property for a 12 month period of time from when you move in. “Dispose” is defined as: lease, sell, transfer, or otherwise grant another person exclusive possession to the property, or part of it e.g. rooms, granny flat.

If you dispose of your property after moving in, you will lose the benefit of the concession from that time, even if you continue to live in the property or move back in.

Update, September 2026: the rules on renting out part of your home changed on 6 December 2024. For lease arrangements that start on or after 10 September 2024, you can rent out part of the property, such as a room, and keep your home or first home concession, as long as you continue to live there and meet the other eligibility criteria. Leasing the whole property, selling or transferring it within the 12 months still counts as disposing. We cover the change in first home owners can now rent out rooms without penalty.

If your circumstances change, you have an obligation to inform the Queensland Revenue Office (QRO) in a timely manner. Here are some common examples of when you could dispose without realising:

• you grant a lease extension to an existing tenant before moving in;
• you lease out a room or granny flat on the property within 12 months of moving in (this now applies only to lease arrangements that started before 10 September 2024 - see the update above);
• you sell or transfer part of your interest in a property within 12 months of moving in;
• within a few months of moving in, you lease out your home or part of your home using an online accommodation sharing platform - e.g. airbnb, booking.com;
• an existing tenant continues to live in the home after their lease expires or for more than six months after the settlement date, whichever comes earlier; and
• a previous owner does not move out within six months.

Does demolishing the home affect the concession?

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. More information for demolishing a home and transfer duty can be found here.

What if you no longer meet the eligibility obligations?

If you have claimed the transfer duty concession, but now don’t meet an eligibility requirement, you must notify QRO within 28 days by completing a notice for reassessment form (D2.4).

You can either:

a) complete the form and submit it online; or

b) download the form and send it in the post.

You may not lose the concession if you cannot occupy the home because of an “intervening event” - i.e. natural disaster or death, but you still need to notify QRO.

If QRO do a reassessment, you’ll have to pay back some of the transfer duty. You may also have to pay unpaid tax interests and penalty tax, depending on your circumstances.

This will be explained on your reassessment notice if you receive one. The sooner you tell QRO you’re no longer meeting an eligibility requirement, the better your chances of paying  lower interest and penalty amounts.

Can you keep a partial transfer duty concession?

If you moved in on time but then sold, leased, gifted, or otherwise disposed of part of, or all of the property before the 12 month period finishes, you may still be eligible for a partial transfer duty concession i.e - you’ll only need to pay back a part of your transfer duty concession, on a pro-rata basis.

If you’ve claimed the First Home Vacant Land concession, you have two years to build and move in. If you move in on time, but then sold, leased, gifted, or otherwise disposed within the 12 months, you may still be eligible for a partial transfer duty concession, but you’ll need to pay back a part of the concession.

What happens if you don’t notify QRO?

After settlement, you don’t move into the property, but instead you lease it out. You don’t notify QRO and you provide misleading information, which they find during an investigation. You will have to repay the concession in full. You’ll also have to pay unpaid tax interest because you received a benefit that you were not entitled to. Penalty tax of up to 90% will also apply because you didn’t notify QRO of your breach, didn’t cooperate, and tried to stop QRO from understanding your liability.

There are more examples on the QRO website, including an estimator for what you will have to pay back.

So basically - you have to disclose if you dispose.

Also, if you’ve received a text message from QRO, it’s likely just a reminder about your concession. If you’ve moved in and are meeting your obligations on the concession, you don’t need to do anything. It’s just an FYI. It is there to remind you if your circumstances change to notify them.