According to our analysis of hundreds of loan advice transactions, if you bought your first home in Brisbane before September 2024, you faced an awkward choice. Keep your stamp duty concession and absorb the full mortgage yourself, or rent out a room and lose thousands in tax savings. The Queensland Government has now removed that barrier.
Since 10 September 2024, first home buyers can lease out a room or space in their property while still claiming the stamp duty concession. However, there are specific requirements to consider. You need to keep living there yourself. This provision was initially a pilot, but it was made permanent in the 2025-26 Queensland State Budget to address long-term housing supply issues.
What Changed and Why It Matters
Under the old rules, roughly 21,000 Queensland first home buyers each year were blocked from renting out any part of their home during the first 12 months of ownership. If they did, they forfeited the stamp duty concession entirely.
The concession itself is worth real money. On a $650,000 property, you would normally pay around $14,175 in transfer duty. With the Queensland stamp duty concession, that drops to zero for properties valued at $700,000 or less.
As of March 2026, REIQ data shows Brisbane's rental vacancy rate has eased slightly to 1.5 percent due to increased completion of medium-density developments, though the market remains tight. That means finding a tenant for a spare room is straightforward. A room in an inner Brisbane suburb might bring in $250 to $350 per week, depending on location and inclusions. Over a year, that adds up to $13,000 to $18,000 in extra income to put toward your mortgage.
Eligibility Criteria for the Concession
The basic eligibility requirements for the first home concession remain unchanged. Generally, you need to:
- Be an Australian citizen or permanent resident
- Be at least 18 years old
- Never have owned residential property in Australia before (including investment property)
- Move into the property within one year of settlement
- Live there as your principal place of residence for at least one continuous year
The property itself must be valued at $700,000 or less for the full exemption. Partial concessions apply for properties between $700,001 and $800,000. According to our analysis, for properties valued above $800,000, typically no concession is available.
If you are buying with a partner who has owned property before, the situation becomes more complicated. You may still qualify for a partial concession based on your share of ownership. This is where professional advice becomes necessary, as the calculations depend on your specific circumstances.
How the Room Rental Rules Work
The new rules do not give you complete freedom to do whatever you want with the property. There are conditions.
You must continue living in the home as your main residence. Generally, you cannot move out and rent the entire property. The concession is for owner-occupiers who happen to have a spare room, not for investors using a technicality.
The lease arrangement needs to follow the current state guidelines. Since the 2025-26 budget, the ability to rent out a room while maintaining the first home concession has been a permanent feature of the Queensland tax system, providing long-term certainty for those looking to offset their mortgage costs.
Your tenant can be anyone, including a friend or family member, as long as the arrangement is genuine. The Queensland Revenue Office may ask for evidence of the tenancy if questions arise about your eligibility.
Off-the-Plan Purchases and the New Rules
Buying off-the-plan adds another layer of timing considerations. Your settlement might be 18 months or two years away. The stamp duty concession eligibility is assessed at settlement, not at contract signing.
This means the rules in place when you actually settle are the ones that apply to you. If you signed an off-the-plan contract in 2023 but settle in 2025, you would be assessed under the 2025 rules. That could work in your favour if concessions have improved, or against you if they have tightened.
Off-the-plan purchases carry specific risks around sunset clauses and developer obligations. Getting your contract reviewed before signing helps identify these issues early.
When Parents Help with the Purchase
Many first home buyers receive financial help from parents, whether as a gift, a loan, or by having parents go on the title as co-owners. Each approach affects stamp duty concession eligibility differently.
If your parents go on the title and they have owned property before, you may lose the concession entirely or have it reduced. A gift or loan that keeps the title in your name alone preserves your full eligibility.
The Bank of Mum and Dad arrangements need careful structuring. Getting this wrong can cost your family tens of thousands in unnecessary stamp duty.
Combining Concessions with the First Home Owner Grant
Queensland first home buyers may also qualify for the First Home Owner Grant (FHOG) of $15,000, but only for new homes. The FHOG does not apply to established properties. The grant reverted to this standard amount after the temporary $30,000 boost expired on 30 June 2025.
The stamp duty concession and FHOG are separate programs with different eligibility criteria. You can potentially claim both on a new build valued under $750,000. The combined benefit is now approximately $29,175 in savings and grants.
According to the Queensland Government's recent announcements, first home buyers purchasing new builds now pay no stamp duty at all, making the savings even larger for those buying newly constructed homes.
What to Watch Out For
The stamp duty concession has strict compliance requirements. If you fail to move in within 12 months, or move out before completing your one-year residency requirement, you may have to repay the concession with interest.
Renting out a room is now allowed, but renting out the whole property is not. If your circumstances change and you need to relocate for work, contact the Queensland Revenue Office before making any decisions. There may be hardship provisions or ways to preserve your eligibility.
Documentation matters. Keep records of your tenancy arrangement, your own residency (utility bills, licence address, electoral roll), and the dates you moved in. If the Revenue Office audits your claim years later, you want clear evidence.
Getting Professional Advice
Stamp duty rules change regularly, and the interaction between different concessions, grants, and ownership structures can be complicated. What applies to a straightforward purchase by a single buyer differs from a purchase by a couple where one person has previously owned property interstate.
A conveyancing solicitor can review your specific situation and identify which concessions you qualify for. They can also flag issues that might disqualify you before you sign a contract, rather than discovering problems at settlement when it is too late.
If you are buying at auction, you will not have a cooling-off period. Getting your contract reviewed and your stamp duty position confirmed before auction day prevents expensive surprises.
For first home buyers in Brisbane and across Queensland, the new room rental rules provide genuine flexibility. Whether you choose to take in a housemate or keep the place to yourself, knowing your options helps you make an informed decision. If you are unsure how these changes apply to your purchase, speak with a qualified solicitor who handles Queensland conveyancing matters.
