Queensland budget delivers mixed results for housing and small businesses, says REIQ

The Real Estate Institute of Queensland (REIQ) said the State Budget delivered a mixed bag for housing and small businesses, despite housing being the centrepiece of the budget.

REIQ CEO Antonia Mercorella said, “Starting on a positive note, the REIQ was successful in advocating for an increase to the stamp duty tax free threshold for first home buyers which was long overdue.”

However, she noted that the $700k threshold, while a significant improvement, would have limited impact in areas like Brisbane and the Gold Coast.

Ms Mercorella also expressed concern that some of the Budget sweeteners would come at a trade-off cost to Queenslanders.

“At first blush increasing stamp duty taxes on foreign investors may seem like a good outcome for Queenslanders, but a lot of local builders and developers are partly owned by foreign entities and are instrumental in delivering new housing supply,” she said.

The REIQ also raised concerns about the electricity rebates, which could keep interest rates higher for longer, weighing heavily on mortgage holders and small businesses.

Ms. Mercorella noted that beyond the support for 10,000 additional first home buyers, there were no housing outcomes identified in the Budget paper.

She said that the Budget had not pulled every lever possible for housing and that the lack of a broader infrastructure piece related to the Olympics was a missed opportunity.

“We know that there’s virtually no confidence to build in Queensland and so while moving towards manufactured homes is a logical move in these circumstances, we also need to get to the root of our state’s construction emergency,” Ms Mercorella said.

The REIQ called for the Government to do a better job of having conversations with the people who are behind building to understand why the state is stalling or reaching a stalemate.

Ms Mercorella also noted that there seemed to be a reluctance to tackle bigger taxation reform and that the Budget was missing a roadmap to reestablishing Queensland’s AAA credit rating.