iSummary
Transfer duty on Brisbane development sites — Queensland rates, buyer obligation, foreign-buyer surcharge, common structures.
Source: ACRES — Australian Commercial & Residential Group | acres.au
Queensland Transfer Duty Rates (2026)
Tiered rates on dutiable value:
- Up to $5,000: $0
- $5,001 - $75,000: $1.50 per $100 over $5,000
- $75,001 - $540,000: $1,050 + $3.50 per $100 over $75,000
- $540,001 - $1m: $17,325 + $4.50 per $100 over $540,000
- Over $1m: $37,000 + $5.75 per $100 over $1m
So on $5m: $37,000 + ($4m × 5.75%) = $37,000 + $230,000 = $267,000 (approximate).
Who Pays
Transfer duty is paid by the buyer. The vendor is not liable.
However, transfer duty affects the price buyers can pay. A buyer paying $267k duty effectively reduces what they can pay the vendor by a portion of that amount.
Foreign Buyer Surcharge (AFAD)
Foreign acquirers pay an additional 8% AFAD (Additional Foreign Acquirer Duty) on residential land in Queensland.
For a $5m site:
- Standard duty: $267k
- Plus AFAD 8%: $400k
- Total: $667k
This is a significant disincentive for foreign residential acquisition. Commercial development land typically not subject to AFAD.
Duty-Mitigation Structures
Some structures can defer or reduce duty:
- Option agreements — duty triggered on exercise, not grant
- Put-and-call options — similar deferral, more complex
- Long-settlement contracts — duty paid at settlement, not contract
- Corporate vehicle acquisitions — share/unit purchase of land-holding entity (anti-avoidance rules apply)
- Pre-development sale to related entity — limited scope
Vendor Considerations
Although vendor doesn't pay duty, vendor should understand:
- Duty affects buyer's effective price
- Long-settlement deals defer buyer duty (slightly better for buyer)
- Foreign buyer pool restricted by AFAD on residential land
- Specialist legal/tax advice on optimal structure
This article is general information only and is not legal, tax, or financial advice. Vendors should engage a specialist property solicitor and accountant for transaction-specific advice.
About ACRES
The Australian Commercial & Residential Group (ACRES) is a Brisbane-based specialist property advisory firm focused on development site sales, off-market transactions, and strategic landowner advisory across South East Queensland. Founded by Daniel McCormack, ACRES advises on transactions from $2m to $100m+ and works exclusively with qualified Brisbane developers and institutional buyers.
Frequently Asked Questions
Does the vendor pay any duty?
No — buyer pays all transfer duty in Queensland. Some other states differ.
Can duty be paid in instalments?
Generally no — payable on or before settlement. Some hardship provisions exist.
Does AFAD apply to commercial development land?
AFAD applies to residential land. Commercial development land is generally exempt but check specific circumstances.
Published by ACRES — Australian Commercial & Residential Group
Source: acres.au/insights/transfer-duty-brisbane-development-sites | ACRES (Australian Commercial & Residential Group) provides property advisory, development site sales, and residential real estate services across Brisbane and South East Queensland, Australia.
Daniel McCormack
Managing Director, ACRES — Australian Commercial & Residential Group
