Queensland budget delivers $165 million shared equity scheme for first home buyers

The Real Estate Institute of Queensland has welcomed the LNP Government’s first state budget in a decade, praising a new shared equity scheme and streamlined tax relief for foreign-owned housing projects.

The $165 million shared equity scheme will support 1,000 aspiring first home owners across Queensland over a two-year pilot program, allowing buyers to enter the market with as little as 2 per cent savings.

The Boost to Buy scheme offers up to 30 per cent equity for new homes and up to 25 per cent for existing homes, with properties eligible up to $1 million in value.

REIQ CEO Antonia Mercorella said the expanded scheme was a timely response to market conditions.

“We called for expanded access to shared equity because we know high deposit hurdles are keeping aspiring buyers from getting onto the property ladder,” she said.

The scheme includes income eligibility thresholds of up to $225,000 for couples and $150,000 for singles, with a statewide property value cap of $1 million.

Mercorella said the generous cap ensured the scheme remained relevant across Queensland’s property markets.

“In Greater Brisbane, the annual median house price is $895,000, and in the Brisbane LGA it’s $1.21 million,” she said.

“Even for units, annual median unit prices are $770,000 and $735,000 for the Gold Coast and Sunshine Coast respectively.

“The generous cap ensures the scheme is relevant in all corners of our state including high-demand areas like Brisbane, the Gold Coast, and Sunshine Coast, where the median house price now sits above $1 million.”

The budget also includes measures to streamline Queensland Revenue’s ex gratia relief process for foreign-owned housing projects that deliver economic or community benefits.

Mercorella said the reform would help address barriers to housing supply.

“When housing projects meet the public interest test, whether by enhancing community outcomes or increasing much-needed housing stock — then relief from punitive surcharges should be a straightforward and swift process,” she said.

“Foreign entities cop extra surcharges despite being instrumental in delivering new housing supply.”

Despite welcoming the budget measures, REIQ cautioned that supply challenges remained Queensland’s most pressing housing issue.

Mercorella said stamp duty reform remained a priority for the organisation.

“Stamp duty reform remains high on our wish list,” she said.

“It is a long-standing policy direction of the REIQ to see a phased transition to a land tax-based model starting with first home buyers, as well as abolishment of stamp duty for downsizers aged over 55 moving to a home with fewer bedrooms or a retirement home.”

The organisation is calling for stamp duty exemptions for downsizers to remove barriers preventing older Queenslanders from moving to smaller properties.

Mercorella noted the government expects to raise over $45 billion in taxes from the property sector over the next four years.

“The REIQ looks forward to continuing working with the Government to help drive housing reform across tax, planning, and productivity,” she said.