Stamp Duty Threshold Raised for Queensland First Home Buyers
First-time home buyers in Queensland will benefit from a budget commitment to raise the threshold for the first homeowner concession on stamp duty. The Queensland government plans to increase the concession on transfer duty from $500,000 (US$330,000) to $700,000 in the upcoming budget, with the concession tapering out for values up to $800,000.
According to Premier Steven Miles and Deputy Premier Cameron Dick, these changes are aimed at supporting first-time home buyers. Premier Miles emphasized the importance of helping Queenslanders achieve home ownership, as owning a home can significantly improve their financial well-being.
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The incentive will also extend to the first-home vacant land concession threshold, rising from $250,000 to $350,000, with the concession tapering out for values up to $500,000. Premier Miles stated that by increasing the eligibility threshold, aspiring homeowners will have a fairer opportunity to enter the property market, ultimately leading to inter-generational prosperity.
Approximately 10,000 buyers annually will benefit from the increased first homeowner transfer concessions, with $216 million in transfer concessions applying to 17,660 first-time buyer transactions in Brisbane over the past four years.
The government has also raised the land tax surcharge on foreign investors to 3 percent, aligning it with New South Wales (NSW) and Victoria, and the transfer duty surcharge for foreign buyers will now match that of NSW and Victoria at 8 percent.
Deputy Premier Dick highlighted that as house prices continue to rise, this decision will assist Queenslanders in purchasing a home.
Leap-Frogged to 2nd Place
Brisbane has now become the second-most expensive city in Australia to buy a home, as CoreLogic data indicates that Brisbane property values have surged significantly faster than Melbourne’s since the pandemic began.
Deputy Premier Dick emphasized the importance of foreign investors contributing to help more young Queenslanders achieve homeownership, as they compete with Queensland families for real estate.
The Real Estate Institute of Queensland welcomed the decision to increase the stamp duty concession, though the opposition has accused the government of changing their stance to align with their policy. In January, opposition treasury spokesperson David Janetski had mentioned the LNP’s plan to raise the stamp duty threshold.
Mr. Janetski criticized the government for their apparent change in position, questioning the sudden shift in policy before an upcoming election.
