The budget focuses on preserving the current tax structure while introducing a key initiative to remove transfer duty for eligible first-home buyers.
Queensland’s State Treasurer, David Janetzki, presented the 2025-26 state budget for Queensland on 24 June 2025.
This budget prioritises maintaining the current tax structure with no new or increased taxes. A key tax initiative is the removal of transfer duty for eligible first-home buyers.
Removal of transfer duty for first-time home buyers
From 1 May 2025, the government removed transfer duty for eligible first-home buyers purchasing newly built homes or vacant land on which to build a new home.
Streamlining ex gratia relief for foreign fees
The government is implementing administrative changes to improve the processing of applications for ex gratia relief from additional foreign acquirer duty and the land tax foreign surcharge, at an estimated cost of AUD 47 million over 4 years. This will provide eligible applicants, particularly property developers who contribute to residential housing supply, with greater certainty and timely consideration, contributing to broader efforts to increase supply and affordability. Unlike NSW and Victoria, Queensland’s process involves extended engagement with the Revenue Office. The government will collaborate with the Property Consultative Committee to improve certainty and timeliness, with details expected by late 2025.
Revenue protection measures and windfall tax
The “Revenue and Other Legislation Amendment Bill 2025” introduces a “windfall tax” as a revenue protection measure amidst a High Court case debating the constitutionality of surcharges on stamp duty and land tax. This tax aims to counteract potential taxpayer entitlements if the surcharges are ruled invalid before 8 April 2024. The windfall tax serves as an alternative to the foreign surcharge and does not impact taxpayers who accept the surcharge.
