New Rules Make it Easier for Queensland Homeowners to Rent Out Spare Rooms
Recent changes to Queensland’s property laws are set to benefit homeowners looking to supplement their income by renting out spare rooms. The Revenue Legislation Amendment Act 2024, which received royal assent on 28 February 2025, includes significant updates to the Duties Act 2001, making it easier for homeowners to earn rental income without losing valuable concessions.
What the New Legislation Means for Homeowners
Previously, first home buyers in Queensland who received a transfer duty concession were restricted from leasing out part of their property within the first 12 months, risking the loss of their concession if they did so. This made it challenging for new homeowners to offset mortgage costs by renting out a room or separate area of their home.
However, with the support of the Real Estate Institute of Queensland (REIQ), the Queensland Government has introduced changes that now allow these homeowners to rent out part of their property during this period without losing their concession. This legislative shift is part of a broader strategy to address housing affordability and increase rental supply in Queensland.
Key Benefits of the New Rules
- Financial Flexibility: Homeowners can now earn rental income within the critical first year of ownership, providing greater financial stability and reducing the pressure of mortgage repayments.
- Reduced Financial Risk: By removing the risk of losing duty concessions, homeowners can confidently rent out spare rooms without worrying about unexpected financial penalties.
- Improved Rental Supply: With more homeowners potentially renting out spare rooms, this change could help ease Queensland’s tight rental market, offering more housing options for renters.
- Supporting First Home Buyers: The change is particularly beneficial for first home buyers who often face higher initial costs, making it easier for them to manage their new financial commitments.
What Homeowners Need to Know
While this update offers a range of benefits, homeowners should still consider important factors like:
- Tax Implications: Renting out part of your home may have capital gains tax or land tax implications, so it’s essential to understand the potential costs.
- Insurance Considerations: Standard home insurance policies may not cover rooms being rented out, so additional coverage might be necessary.
- Lease Agreements and Tenancy Rights: It’s important to have a clear lease agreement in place to protect both parties.
Ready to Make the Most of Your Property?
If you’re considering renting out a spare room or need expert property management support, Club Property Management can help. Our experienced team can guide you through the process, ensuring you’re fully informed and protected.
Contact us at leasing@clubpropertymanagement.com.au to get started.
Disclaimer: This article is for general information purposes only and should not be considered legal, tax, or financial advice. Homeowners should seek independent professional advice to understand the potential tax and legal implications of renting out part of their property.