QUEENSLAND’S Miles Government has committed a $3.1 billion into housing and homelessness initiatives, along with several first homebuyers measures whilst stamp duty taxes on foreign investors will increase in the budget.
Housing was a key focus in the 2024-25 Budget.
For first homebuyers, the government will double the grant to $30,000 until 30 June 2025 by targeting it at new homes, to encourage more supply.
The budget will also increase the transfer duty first home concession to a value of up to $800,000, an increased from $550,000 currently. First home buyers will pay no duty on homes valued up to $700,000 and will receive a partial concession up to $800,000.
In addition, eligibility for the transfer duty first home vacant land concession will be extended to vacant land with a dutiable value up to $500,000, increased from $400,000 currently.
These changes will increase the maximum value of the first home concession by $8,600 (to a total of $17,350) and the maximum value of the first home vacant land concession by $3,500 (to a total of $10,675).
Treasurer Cameron Dick said the changes will benefit around 10,000 first home buyers per year.
He acknowledged that although the threshold is still below the median house price in Brisbane, it provides more generous relief than the equivalent threshold in Sydney or Melbourne.
“This is a thoughtful plan, a detailed plan, and a prudent plan to help young Queenslanders in particular, find a home that they can call their own. And it is a plan that will not sacrifice the revenue that pays the wages of Queensland teachers, nurses and police officers,” Dick said.
There is also support for renters with a $160 million package to give more households immediate cost-of-living support while new homes are being built, including help to pay bonds and rent reforming rental laws to protect renters’ rights, including banning all forms of rent bidding.
The government also set a social housing delivery target of 53,500 homes by 2046. To meet this objective, the government launched its new whole-of-system housing plan, Homes for Queenslanders. As part of this plan, the government is making a $3.1 billion investment into housing and homelessness initiatives.
The government will also seek to close the gap for First Nations peoples in urban, regional, and remote areas with a $61.3 million investment and plans for 1,200 social homes for First Nations families through partnership with Aboriginal and Torres Strait Islander local government authorities and communities.
Other initiatives include supporting social housing tenants to own their own home through the Sales to Tenants program working with the federal government to implement the Help to Buy scheme, which will make it easier for up to 40,000 low and middle income families around Australia to buy a home.
Meanwhile the government will raise the stamp duty for foreign investors from 2% to 3% from 1 July.
The treasurer said this plan will raise $360 million, which will provide cost-of-living relief to Queenslanders, while helping 40,000 Queensland families into their first home over the next 4 years.
The treasurer added that this plan will help first home buyers, without pushing up prices.
The budget received a mixed response from the Real Estate Institute of Queensland.
REIQ CEO Antonia Mercorella said the increase to the stamp duty tax free threshold for first home buyers was long overdue but it will have limited impact in areas like Brisbane and the Gold Coast.
“Seeing the increased funding materialise in the Budget for the housing sector is also a fitting recognition of the dedicated resources needed to make a real dent in the housing crisis,”
However, Mercorella said it was disappointing to see that some of the Budget sweeteners would come at a concerning 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.
“We’re hearing our fellow peak bodies are dismayed by that decision, because the government is giving on one hand with concessions to boost build to rent developments, but then taking with the other hand with new punitive measures which will lead to downward pressure on approvals.”
Mercorella said the Budget had not pulled every lever possible for housing.
“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.
“Further, there seems to be a reluctance to tackle bigger taxation reform, but if not now in the throes of a housing crisis, then when?”
