Earn Income While Keeping Your First Home Concession
On 7 December 2024, Queensland Premier David Crisafulli's Government announced significant changes to support Queensland first home buyers.
Under the new laws, first home buyers can now rent out a part of their property without losing their eligibility for the transfer duty concession or first home buyer grant, as long as they continue to live in the property as their principal place of residence.
This initiative, part of the Crisafulli Government's Securing Our Housing Foundation Plan, marks a significant step toward improving home ownership rates in Queensland, which currently lag behind other Australian states.
What Has Changed?
Previously, first home buyers could lose their discounted transfer duty if they "disposed" of any part of the property within the first 12 months of ownership. This previously included subletting, renting a room, or listing part of the property on platforms like Airbnb.
With this new law, first home buyers can now rent out rooms while living in the property without penalties.
Housing Minister Sam O’Connor highlighted the change, stating that it could benefit 20,000 first home buyers and significantly increase rental availability during Queensland's housing crisis.
Key Benefits For First Home Buyers
Transfer Duty Concessions Remain Intact
First home buyers can save up to $24,525 on transfer duty. Note that this only applies to a home valued under $800,000.
Grants Still Apply
Eligible first home buyers can still receive grants of up to $30,000. Learn more by clicking here.
Income Generation Without Risk To Eligibility
Renting rooms or subletting part of the property no longer jeopardises transfer duty concessions or grant eligibility.
Eligibility Requirements
To take advantage of these changes, buyers must meet the following criteria:
Move Into The Property First
You must occupy the property as your principal place of residence before renting any part of it.
Live In The Property For 12 Months
You must live in the property for at least 12 months as your principal place of residence.
Timeframe
Leases or rental agreements must commence between 10 September 2024 and 30 June 2025.
For a complete breakdown of the eligibility requirements, including specific examples, click here to access the Queensland Revenue Office's website.
Why This Matters
This change addresses both affordability and supply issues in Queensland's housing market.
Boosting Home Ownership
Queensland has the lowest home ownership rates in Australia, and these changes aim to reverse that trend.
Easing The Housing Crisis
By allowing homeowners to rent rooms, more affordable housing options become available.
Supporting Financial Security
First home buyers can supplement their income while maintaining the financial benefit of the First Home Buyer Grant and Transfer Duty Concession.
Looking Ahead
While the current eligibility period runs until 30 June 2025, it is expected that the Crisafulli Government will extend this initiative further.
For now, these new changes provide significant financial relief and greater flexibility for first home buyers looking to balance home ownership with higher/rising living costs.
For our existing clients, please don't hesitate to contact our office is you want to discuss further how these changes may impact you if you wish to rent out a part of your property.
Disclaimer: This publication is not intended to be comprehensive, nor does it constitute legal advice. We are unable to ensure the information is current and there is no guarantee in relation to accuracy. You should seek legal or other professional advice before acting or relying on any of the content of this publication. The views and/or opinions expressed in this publication is that of the author and may not necessarily represent the views and/or opinions of RHC Solicitors.
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