Queensland State Budget 2026-27: A steady course for housing stability, says REIQ
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Photo by Abdus Samad Mahkri
In a period marked by global economic uncertainty and significant taxation changes at the Federal level, the Real Estate Institute of Queensland (REIQ) has expressed relief at the Queensland Government’s 2026-27 State Budget. The budget promises stability for the housing sector by maintaining existing relief measures and refraining from introducing new taxes, a move hailed as crucial for maintaining market confidence.
REIQ CEO Antonia Mercorella applauded the government’s approach, emphasising the importance of stability in the current economic climate. “After recent Federal Budget changes that have added complexity and uncertainty to housing, we’re relieved to see a steady hand on the tiller in Queensland,” Ms Mercorella stated. The budget’s allocation of $12.3 billion across various housing initiatives underscores the government’s commitment to tackling the state’s housing challenges head-on.
The budget’s focus on supply, social housing, and first home buyer support is seen as a pivotal step in addressing the housing crisis. “The scale of this investment aptly reflects the urgency of Queensland’s housing challenges and reinforces the Government’s housing agenda, but funding alone won’t resolve the housing supply imbalance,” Ms Mercorella cautioned. She further stressed the need for ongoing progress in planning reform, tax settings, and construction productivity to ensure these investments translate into tangible housing outcomes.
One of the most encouraging elements of the budget, according to Ms Mercorella, is the expanded funding for initiatives aimed at accelerating housing supply. “Doubling the Residential Activation Fund again to $1 billion is a clear acknowledgement that infrastructure remains one of the biggest barriers to getting new housing off the ground,” she noted. The continued investment in programs such as the Land Activation Program, Infrastructure Activation Fund, and State Facilitated Developments is expected to contribute to a stronger pipeline of housing projects.
The Queensland Government’s commitment to social and community housing is also evident, with an additional $1.024 billion investment over five years, contributing to a record $5.7 billion program. “We also welcome the Government doing its part to build with an additional $1.024 billion investment over five years in social and community housing,” Ms Mercorella said, highlighting the significance of this financial commitment.
Additionally, the budget ensures funding continuity for frontline housing and homelessness services, with a $450 million boost, alongside $83 million for rental assistance programs, and an additional $18.5 million to support the operations of the Residential Tenancies Authority. “Ensuring vulnerable Queenslanders have access to safe and secure housing must remain a priority, and it’s positive to see continued investment in this space,” Ms Mercorella emphasised. The importance of well-resourced regulatory oversight and independent support was also underscored as essential to maintaining confidence and stability across the rental market.
The budget also continues to support first home buyers through the $30,000 First Home Owner Grant (FHOG) with $72 million funding over four years and ongoing investment in the $330 million Boost to Buy shared equity program. “These initiatives help address one of the biggest hurdles for first home buyers, which is getting together a deposit,” Ms Mercorella remarked. However, she suggested that there is room to expand the First Home Owner Grant to include established housing, particularly in regional areas where new supply is limited.
Despite these positive developments, Ms Mercorella pointed out that stamp duty reform remains a key advocacy priority for the REIQ. “Stamp duty reform remains a key lever that has yet to be fully pulled. It continues to act as a barrier to mobility and home ownership, and we would like to see a pathway toward a more efficient system,” she said. The budget’s revision of stamp duty revenue downwards, compared to the previous year, highlights the volatility of relying on market-driven revenue.
While welcoming the Queensland Government’s moves to abolish stamp duty for first home buyers on new homes, Ms Mercorella noted that there is still room to extend this relief. She pointed to the ACT Government’s recent initiative to abolish stamp duty for a broader range of buyers, including first home buyers, those re-entering the market after time away, and eligible pensioners, as a potential model for Queensland. “These are the types of bold reforms that improve mobility, unlock housing supply, make better use of existing stock, and attract buyers to Queensland,” she concluded.