The Queensland Government has announced significant changes to stamp duty concessions for first home buyers, aiming to make home ownership more accessible in the state. This reform, unveiled as part of the 2024-25 state budget, reflects the government’s commitment to alleviating the financial burden on first-time home buyers in a market characterized by rising property prices.
Key Changes
Increased Concession Threshold: The threshold for the first home buyer stamp duty concession has been raised from $500,000 to $700,000. This change allows first home buyers to purchase properties up to this new limit without paying stamp duty. For homes valued between $700,000 and $800,000, partial concessions will apply.
Concessions for Vacant Land: The threshold for concessions on vacant land has also increased from $250,000 to $350,000, with partial concessions available for land purchases up to $500,000.
Financial Impact
Under the new policy, first home buyers can save up to $17,530 in stamp duty costs. This reform is expected to benefit approximately 10,000 first home buyers annually, making it easier for them to enter the property market amidst escalating property prices, especially in areas like Brisbane where the median home value is significantly higher than the new concession threshold.
Offsetting Measures
To balance the budgetary impact of these concessions, the Queensland Government has decided to increase land tax surcharges on foreign investors. The surcharge will rise to 3%, and the transfer duty surcharge for foreign buyers will be aligned with New South Wales and Victoria at 8%. This move aims to ensure that tax relief for local buyers is counterbalanced by contributions from overseas investors, who are seen as competing with local families for real estate.
Broader Context
These changes come as part of a broader effort to address the affordability of housing in Queensland. Earlier this year, the state doubled its First Home Owner Grant, offering up to $30,000 for eligible recipients. Additionally, Queensland is the first state to introduce legislation supporting the Australian Government's Help to Buy program, which offers equity contributions to help buyers purchase their homes.
While the Real Estate Institute of Queensland (REIQ) and other industry bodies have welcomed the updated threshold, they argue that it may still be insufficient given the high property prices in certain areas. The REIQ has called for further adjustments to ensure the concessions remain relevant and effective in helping first home buyers achieve their homeownership goals.
Conclusion
The recent adjustments to stamp duty concessions mark a significant step towards easing the financial burden on first home buyers in Queensland. By raising the threshold and offering partial concessions for higher-valued properties, the state government is striving to keep homeownership within reach for more Queenslanders. However, ongoing monitoring and potential further adjustments will be crucial to ensure these measures remain effective in a dynamic property market.
DISCLAIMER - The information provided is for guidance and informational purposes only and does not replace independent business, legal and financial advice which we strongly recommend. Whilst the information is considered true and correct at the date of publication, changes in circumstances after the time of publication may impact the accuracy of the information provided. LJ Hooker will not accept responsibility or liability for any reliance on the blog information, including but not limited to, the accuracy, currency or completeness of any information or links.
Sources:
Share
