Queensland government raises stamp duty concession threshold for first home buyers to $700,000

The Real Estate Institute of Queensland (REIQ) welcomed the Queensland Government’s announcement to increase the stamp duty concession threshold for first home buyers to $700,000 after a 15-year wait.

REIQ CEO Antonia Mercorella said, “It is an easy and logical first step to address the home ownership emergency in this state and we congratulate the Government on listening to our calls for change.”

She noted that with Queensland having the lowest rates of home ownership of any state and declining first home buyer activity, a stamp duty overhaul was critically important.

“The current $500,000 threshold is extremely outdated and has rendered the stamp duty concession virtually redundant for first time buyers given material shifts in property prices,” Ms Mercorella said.

The Treasurer announced predictions that the number of Queenslanders purchasing their first home each year would increase by 10,000 following this reform, up from the current average of approximately 26,000 per annum over the last four years.

Ms Mercorella said it was pleasing to see the announcement of a tangible target on a housing-related policy and looked forward to seeing regular and transparent reporting in the future.
However, she noted that although the new $700,000 threshold was a marked improvement, it was still short of where it should be set and left Queensland behind Tasmania, particularly in parts of the market such as Greater Brisbane.

The REIQ suggested further enhancements to the policy, including allowing recipients of the concession to rent out a room in the property provided they maintain the dwelling as a primary place of residence and extending the incentive to those who have been out of home ownership for at least five years due to a change in personal circumstances.

Ms Mercorella did raise concerns about the increase in stamp duty for overseas investors, stating that it seemed counterintuitive to offer concessions for large overseas multinationals to take profits out of Queensland in the form of built to rent while punishing those looking to invest in other products that provide supply.