Related Party Transfers in Queensland
Transferring property to a family member, a spouse, a trust or your own company? The tax office does not care what you agreed to pay. It cares what the property is worth.
Here is the sentence that costs Queenslanders the most money every year: “we are just transferring it to the kids for a dollar.”
You can absolutely document a transfer that way. It will not do what you think it does. Transfer duty is assessed on the market value of the property, not the price on the contract. Capital gains tax is generally calculated the same way. The dollar changes neither. All it does is put on the public record that the deal was not at arm’s length.
Related party transfers are one of the areas we are asked about most, and one of the easiest to get expensively wrong. We have handled thousands of them, from parents gifting a Gold Coast unit to a child, to separating couples buying each other out, to investors restructuring a portfolio into a trust. We will tell you what it actually costs before you commit, not after the assessment lands.
What is a related party transfer?
A related party transfer is a transfer of property between people or entities that already have a relationship, rather than a sale between strangers on the open market. Most people reach this page because they want to transfer property to a family member, transfer a share to a spouse, or move a property into or out of a family trust, and they want to know what it will cost before they commit.
The transaction is legally the same as any other transfer of land. What changes is that nobody set the price by exposing the property to the market. So the Queensland Revenue Office and the ATO stop taking the contract price at face value and apply their own tests.
Common examples:
- Parent to child: gifting, selling at a discount, or helping a child into their first property
- Between spouses or de facto partners: adding a partner to the title, or removing one
- Separation and divorce: one partner buying the other out of the family home
- Into or out of a family trust: restructuring for asset protection or estate planning
- Between a person and their own company: moving property into or out of a corporate structure
- Between siblings, or between business partners: dissolving a joint holding
- Deceased estates: transferring a property to the beneficiaries under a will
- Between related companies or trusts: group restructures
If the two sides know each other, the Revenue Office is going to look closely. That is the whole game.
The rule that catches everyone: duty is charged on market value
Under section 11 of the Duties Act 2001, transfer duty is charged on the higher of the consideration (what was actually paid) or the unencumbered value of the property, meaning what it would fetch on the open market with no mortgage attached.
There is no family discount. Being related to the seller does not reduce the duty.
An example we see constantly. Your parents own a $1,000,000 investment property. Because they are generous people, they will let you have it for $850,000. Good news for you: $150,000 off. But the Revenue Office assesses duty on $1,000,000, not $850,000, because market value is the higher figure. You have saved on the purchase price. You have not saved a cent on duty.
The same logic applies to a half share. Transferring 50% of a $900,000 property to a family member for nothing is assessed against $450,000.
Run the numbers before you sign, not after. Our stamp duty calculator will give you the ballpark.
You will need evidence of value, and a rates notice will not cut it
This is where a lot of DIY transfers fall over.
The Commissioner’s position is set out in Public Ruling DA505.1.2. A valuation must be submitted where a person in the transaction is a member of another party’s family, where a company is involved and there is an association through directorships, shareholdings, partnership or joint venture, where there is no consideration at all, or where the consideration cannot be worked out when the duty liability arises.
In practice, that means almost every related party transfer needs evidence of value, and it has to meet a standard:
- A valuation from a registered valuer, or
- Evidence of market value from a real estate agent who is competent to assess the property and independent of the transaction, supported by at least three recent comparable sales
The evidence has to identify the property properly, with the correct real property description (lot and plan), street address, and a short description of the improvements. The Commissioner will generally accept evidence dated up to three months before the transfer is signed. As self assessors, we are required to hold that evidence for five years after the transaction completes.
Two things worth knowing that catch people out:
Where there is a range, the Revenue Office takes the top of it. If there is no consideration, duty is calculated on the highest ascertainable value in the valuation. Three comparables at $950,000, $980,000 and $1,200,000 means duty on $1,200,000. The Commissioner is under no obligation to take the friendliest number.
A low-ball valuation can cost you twice. If the Commissioner is not satisfied and obtains their own valuation, and your declared figure comes in more than 10% below it (or more than $100,000 below, on properties valued over $1,000,000), the cost of that valuation is passed on to you, on top of the extra duty.
And to be very clear: the unimproved capital value on your council rates notice is a statutory land valuation. It is not a market valuation of your property. It will not be accepted.
When is a related party transfer exempt from duty?
Exemptions exist. They are narrow, they have conditions, and none of them are automatic. These are the ones that come up most.
Transfers of a home between spouses (section 151)
A transfer of residential land between spouses by way of gift can be exempt from duty where, after the transfer, you and your spouse own the whole home as joint tenants or tenants in common in equal shares, and it is a home you actually live in. The conditions matter: equal shares means equal shares.
Family Law Act orders and binding financial agreements
Transfers giving effect to a sealed court order or a financial agreement under sections 90, 90L or 90WA of the Family Law Act 1975 are exempt from transfer duty. The order or agreement has to be valid, has to pre-date the transaction, has to specify the property being transferred, and has to state clearly who it goes to.
This is the big one for separating couples. On a $1,500,000 home held jointly, duty on the 50% share being bought out is roughly $26,775 at general rates. Structure it properly through a court order or a binding financial agreement that names the property, and that liability can disappear. Do the transfer first and paper it later, and it will not.
If you are a broker or an agent with a client going through a separation, this is the single most valuable thing you can flag for them. We can help with binding financial agreements, and we work with family law partners we can refer you to. See our family law and property settlement and divorce applications pages.
Matrimonial instruments (section 424)
Separately, a transfer is exempt under section 424 of the Duties Act 2001 where a marriage has been dissolved or annulled, the property is transferred from a former spouse to you, the property is your principal place of residence, and the transfer is dated after proceedings started.
Death of a property owner
Transfers arising from a death, such as transmission applications and transfers to beneficiaries under a will, have their own exemption pathway. If you are dealing with a deceased estate, start with our wills and estates page.
A word of warning. People read the word “exemption” and assume it applies to them. In our experience, most related party transfers are fully dutiable. Get the position confirmed in writing before you commit to a structure, not after the transfer has been drawn and lodged.
The CGT trap nobody warns you about
Duty and capital gains tax are separate taxes with separate rules. A transfer can be exempt from one and expensive under the other.
Where parties are not dealing at arm’s length, a transfer is generally treated for CGT purposes as happening at market value, regardless of what actually changed hands.
Read that again in the context of a gift. A parent transferring an investment property to a child for nothing can trigger a real capital gains liability, calculated on the full market value, with no cash coming in to pay it. We have seen people discover this at tax time, months after the transfer, when unwinding it is no longer an option.
Our capital gains tax calculator will give you a rough estimate, but the CGT position itself is your accountant’s call, not ours. We do not give tax advice and we do not handle the CGT side of a transfer. Get your accountant across it before you transfer, because once it is done it is done.
The ATO clearance certificate that stops your settlement
Since 1 January 2025, foreign resident capital gains withholding applies to every property disposal, at any value. The old $750,000 threshold is gone and the rate is 15%.
That means every transferor, including your parents, including your ex, including a family trust, needs an ATO clearance certificate to give to the transferee at or before settlement. Without one, the transferee is required to withhold 15% and remit it to the ATO. And on a transfer that is not at arm’s length, the 15% is calculated on market value, not on the nominal price.
So on a “$1 transfer” of a $900,000 property with no clearance certificate, the withholding obligation is $135,000. On a transaction where no money is changing hands at all.
Clearance certificates can take time to issue, and this is one of the most common reasons related party transfers miss their date. The application is made by the transferor directly with the ATO. It is not something we lodge on your behalf, but we will prompt you early so it is underway well before settlement rather than in the week of.
Do you even need a contract of sale?
Sometimes, and the answer turns on who is already on the title.
If one of the parties is already on the title, a transfer alone may be enough. Think a couple moving from joint names into one name, or one sibling buying out another.
If the whole property is going to someone not on the title at all, such as parents transferring to a child, you really should have a contract or some form of written agreement in place. It sets out what was agreed, at what value, and on what terms, and it is what everyone falls back on if the arrangement is ever questioned.
Your lender has a say too. If there is a mortgage involved, or new finance is being arranged, the bank or broker will usually tell us whether they require a contract.
That decision also affects your seller disclosure position under the Form 2 regime that commenced on 1 August 2025. It is one of the first things we work out on a related party file, because it changes both the paperwork and the cost.
Talk to your banker or broker early, and tell us what they say.
What else needs sorting before you transfer
- Lender consent. You cannot transfer an interest in a mortgaged property without the bank agreeing. Start this early, because it is frequently the longest lead time on the file.
- Independent legal advice for each side. We only ever act for one party in these transactions, usually the incoming party, as there is more work involved. The other side needs their own representation. This is not a formality: a transfer where one side had no independent advice is far easier to challenge later, particularly where there is a family dispute or an estate down the track.
- Land tax. Changing who owns what changes land tax liability. A property that sat under the threshold in one name may not in another.
- Main residence status. Moving a home into a trust or company can cost you the main residence CGT exemption entirely.
- Future first home concessions. Putting a property in an adult child’s name now can disqualify them from first home duty concessions later. That is often a bigger number than the one you were trying to save.
- Your wills. Decide joint tenants or tenants in common deliberately, and update the wills at the same time. A transfer that contradicts a will is a dispute waiting to happen.
Why use Empire Legal for your related party transfer
Conveyancing for related party transfers is core work here, not an occasional file. We are registered self assessors, so we assess the duty ourselves, which means we know before you commit exactly what evidence of value will and will not be accepted, and we are not learning the Public Ruling on your file. If you want legal advice for a related party transfer before you commit to anything, that is exactly the conversation to have first, and it is the cheapest part of the whole exercise.
What you get:
- A clear answer on duty, exemptions and evidence of value before you sign anything
- An early flag on the CGT and withholding issues, so you can get your accountant onto them in time
- An early prompt to get your ATO clearance certificate underway, so it does not hold up settlement
- A practice manager and a senior lawyer across every file
- Standard-fee pricing with no surprises, and no kickbacks to anyone who referred you
- A human on the end of the phone
We have helped more than 16,000 clients through Queensland property transactions, with a 5.0 rating across 3,064 five-star Google reviews. Offices in Spring Hill (Brisbane CBD), Wynnum (Bayside) and Paradise Point (Gold Coast), acting for clients right across Queensland.
What does a related party transfer cost?
Related party transfers vary more than a standard conveyance. Some are a straightforward transfer with no contract. Others involve a trust deed, a company structure, a binding financial agreement, or a valuation dispute with the Revenue Office.
So we quote them individually rather than publishing a single number that would be wrong for half the people reading it. It is still a standard fee, so you will know the number before we start, and it will not move.
Tell us who is transferring to whom, roughly what the property is worth, and whether there is a mortgage on it. That is enough for us to come back with a standard fee and a realistic timeline. We reply to emails within one business hour.
Related party transfers: frequently asked questions
What is a related party transfer in Queensland?
A related party transfer is a transfer of property between parties who already have a relationship rather than dealing at arm’s length: parent and child, spouses, siblings, a person and their own company, or into and out of a family trust. The transfer itself works like any other, but because nobody set the price on the open market, the Queensland Revenue Office and the ATO apply their own value tests instead of accepting the contract price.
Do you pay stamp duty on a transfer between family members in QLD?
Usually yes. Transfer duty is assessed on the higher of what was paid or the unencumbered market value of the property. There is no family discount. Some transfers are exempt, between spouses in particular circumstances, or under a Family Law Act order or financial agreement, but the conditions are specific and the exemptions are not automatic.
Can I transfer a property to my child for $1 in Queensland?
You can document it that way, but it will not achieve what people expect. Duty is assessed on market value, CGT is generally calculated on market value, and the nominal price changes neither. The only thing it reliably does is create a record that the transfer was not at arm’s length.
Do I need a valuation for a related party transfer?
In practice, almost always. Under Public Ruling DA505.1.2, evidence of value must be submitted where the parties are family members, where there is an association through a company, or where there is no consideration. The Revenue Office will accept a registered valuation, or evidence from an independent real estate agent supported by at least three recent comparable sales. A council rates notice is not acceptable evidence, because the unimproved capital value on it is a statutory land valuation, not a market valuation of the property.
How recent does the valuation have to be?
The Commissioner will generally accept evidence of value dated up to three months before the parties sign the transfer. As self assessors, we are required to keep that evidence for five years after the transaction completes.
What happens if the valuation comes in low?
If the Commissioner is not satisfied with the evidence, they can obtain their own valuation. Where the value you declared is more than 10% below the Commissioner’s figure, or more than $100,000 below on properties valued over $1,000,000, the cost of that valuation is passed on to you, on top of the additional duty. Where a valuation gives a range and there is no consideration, duty is assessed on the highest figure in the range.
Is a transfer between spouses exempt from stamp duty in Queensland?
It can be. Under section 151 of the Duties Act 2001, a gift of residential land between spouses can be exempt where, after the transfer, the two of you own the whole home as joint tenants or tenants in common in equal shares, and it is a home you live in. The conditions are strict, so get the position confirmed before you transfer rather than after.
We are separating. Can we avoid stamp duty on the transfer?
Often yes, if it is structured properly. Transfers giving effect to a sealed Family Law Act court order or a binding financial agreement under sections 90, 90L or 90WA are exempt from transfer duty. The order or agreement must be valid, must pre-date the transaction, and must specifically identify the property and who it is going to. On a $1,500,000 home, that is roughly $26,775 in duty at stake on the half share. Do the transfer first and paper it afterwards, and the exemption is gone.
Is there capital gains tax on a related party transfer?
Generally the transfer is treated for CGT purposes as happening at market value, regardless of what actually changed hands. So a parent gifting an investment property to a child can trigger a real CGT liability with no sale proceeds to pay it from. Duty and CGT are separate taxes with separate rules, and a transfer that is exempt from one can still be expensive under the other. CGT is your accountant’s area rather than ours, so get their advice before you commit.
Do I need an ATO clearance certificate for a family transfer?
Yes. Since 1 January 2025 foreign resident capital gains withholding applies to all property disposals at any value, at a rate of 15%. Every transferor needs a clearance certificate to give the transferee at or before settlement. Without one, the transferee must withhold 15%, and on a transfer that is not at arm’s length, that 15% is calculated on market value, not on the nominal price. Certificates take time to issue. The transferor applies directly with the ATO, so it is not something we lodge for you, but we will prompt you early so it does not become the thing holding up settlement.
Do we need a contract of sale for a related party transfer?
It depends mainly on who is already on the title. Where one of the parties is already on the title, a transfer alone may be enough. Where the whole property is going to someone who is not on the title at all, such as parents transferring to a child, there really should be a contract or some form of written agreement in place. Your lender can decide it too, so talk to your banker or broker early and tell us what they say, because it also affects whether a seller disclosure statement is required.
Can Empire Legal act for both sides of the transfer?
No. We never act for both parties in the same transaction. On a related party transfer we usually act for the incoming party, since that is where the work sits, and the other side arranges their own representation. We can point them in the right direction. Independent advice on both sides also makes the transfer far harder to challenge later.
Do I need a solicitor for a related party transfer, or can I do it myself?
There are no licensed conveyancers in Queensland: conveyancing here is done by solicitors and law firms. You can lodge a transfer yourself, but related party transfers are where DIY goes wrong most often, because the duty, valuation, CGT and withholding issues all interact and none of them are obvious from the forms. The cost of getting it wrong is measured in tens of thousands, not hundreds.
How long does a related party transfer take?
It depends on the two long poles: lender consent if there is a mortgage, and the ATO clearance certificate. Both should be started immediately. A straightforward transfer with no finance can move quickly. A transfer involving a trust deed, a company, or a family law agreement takes longer. We will give you a realistic timeline with your quote.
Talk to us before you transfer
Phone: 07 3088 7675
Email: info@empirelegal.com.au
Office hours: 9:00am - 5:00pm, Monday to Friday
Related reading: Related party property transfers: duty, CGT and valuations | Related party transfers part 2: duty exemptions | Property valuations and transfer duty
