Cost Of Living For Queensland First Home Buyers

JOINT STATEMENT
  • Miles Labor Government reduces costs for first homeowners
  • First home owner concession threshold on transfer duty increased by $200,000 to $700,000
  • Concessions expected to help 10,000 first home buyers a year
  • Foreign property owners to offset loss of transfer duty revenue

The Miles Labor Government is backing first homeowners by increasing the threshold for the first homeowner concession on transfer duty from $500,000 to $700,000, with the concession then phasing out up to values of $800,000.

The improved incentives will also apply to the first home vacant land concession threshold, increasing from $250,000 to $350,000, with the concession then phasing out up to values of $500,000.

The changes to transfer duty concessions will target first home buyers in the spectrum of the market where they are more likely to face affordability challenges and find it harder to purchase a home.

It is estimated this substantial increase in the first homeowner transfer concessions will support around 10,000 buyers a year to unlock their first home.

Data shows that many units and houses across the state are still materially under the threshold, including in Greater Brisbane.  

In the past four years $216 million in transfer concessions applied to 17,660 first home buyer transactions in Brisbane.

A further 76,241 homeowners had the transfer duty home concession applied to the purchase of their Brisbane home.

To offset the demand from increased purchasing power for first home buyers with increased transfer duty concession thresholds, the Miles Labor Government has increased the foreign investor land tax surcharge to 3 per cent.

Queensland’s land tax foreign investor surcharge remains lower than the other major states, with both New South Wales and Victoria setting their surcharges at 4 per cent.

Transfer duty surcharge for foreign buyers is being brought into line with New South Wales and Victoria at 8 per cent.

As stated by Premier, Steven Miles:

When youre great, you grow, so its no wonder people are moving here.

“I am always looking at ways to help Queenslanders buy their first home.

By increasing the eligibility threshold, we are giving aspiring homeowners a fairer go.

I want young Queenslanders to have more opportunity than their parents including the opportunity to own their own place. I want that for my kids too.

This is a real cost of living measure, that will also help deliver inter-generational prosperity.

“The concessions will put the dream of owning a first home within reach of more Queenslanders.

As stated by Deputy Premier and Treasurer Cameron Dick:

“As a father of two young adult boys, I know firsthand how challenging the prospect of buying your first home in Queensland is right now.

“That’s why in this Budget we are raising the threshold for transfer duty concessions for first home owners.

“This decision will make it easier for Queenslanders to buy their first home as house prices continue to rise.

“Foreign investors have had a great run in Queensland, but they compete with Queensland families for real estate, so it’s only fair that they contribute to helping more young Queenslanders into their first home.”

“Our approach to revenue ensures tax relief is always offset, so we can continue to deliver services and infrastructure, whereas the LNP will cut services because they just reduce revenue to help multinationals.”

Quotes attributable Minister for Housing, Local Government and Planning and Minister for Public Works, Meaghan Scanlon:

“I know how much cost of living is impacting Queenslanders, especially first home buyers.

“The boosted First Home Owner Grant is already helping Queenslanders buy or build their first new home, and the increased stamp duty concession will continue to get more Queenslanders into their own home.

“Queensland is the first state to introduce referral legislation to Parliament to support the Australian Government’s Help to Buy program, which will help thousands of Queenslanders purchase their own home.

“As part of the scheme, eligible homebuyers will receive support to purchase their home with an equity contribution of up to 40 per cent for new homes and 30 per cent for existing homes.”

/Public Release. View in full here.