First-time homebuyers in Queensland are set to benefit from a budget commitment to raise the threshold for the first homeowner concession on stamp duty. The Queensland government plans to increase the concession on transfer duty from $500,000 to $700,000 in the upcoming budget, with the concession gradually phasing out up to values of $800,000.
Premier Steven Miles and Deputy Premier Cameron Dick stated that these changes are specifically aimed at supporting first-time homebuyers. Premier Miles emphasized the importance of helping Queenslanders enter the property ownership system, as it can significantly improve their financial well-being over the long term.
Additionally, the eligibility threshold for the first-home vacant land concession will increase from $250,000 to $350,000, with the concession tapering off for values up to $500,000. This move is intended to provide aspiring homeowners with a fairer opportunity to enter the housing market and achieve inter-generational prosperity.
It is estimated that around 10,000 buyers annually will benefit from the increased first homeowner transfer concessions. Over the past four years, $216 million in transfer concessions has been applied to 17,660 first-time homebuyer transactions in Brisbane, benefiting a further 76,241 homeowners who received the transfer duty home concession for their Brisbane properties.
Moreover, the government has decided to raise the land tax surcharge on foreign investors to 3 percent, aligning it with rates in New South Wales and Victoria. The transfer duty surcharge for foreign buyers will also be brought in line with NSW and Victoria at 8 percent.
Deputy Premier Dick highlighted the government’s commitment to helping Queenslanders achieve homeownership amidst rising house prices. He emphasized the need for foreign investors to contribute towards assisting more young Queenslanders in purchasing their first home.
Leap-Frogged to 2nd Place
Recent data from CoreLogic revealed that Brisbane has become the second-most expensive city in Australia to buy a home, with property values in Brisbane increasing more rapidly than in Melbourne since the onset of the pandemic.
The decision to increase the stamp duty concession has been praised by the Real Estate Institute of Queensland, although the opposition has criticized the government for allegedly adopting their policy after initially rejecting it. Despite the political discourse, the focus remains on supporting first-time homebuyers and addressing the challenges of entering the housing market in Queensland.
