- Queensland's first home buyer stamp duty concession threshold is raised to $700,000 from $500,000, with partial concessions for homes up to $800,000
- First home buyers can save up to $17,530 in stamp duty costs under the updated policy.
- The change is estimated to benefit 10,000 first home buyers annually.
- REIQ argues the $700,000 threshold is still low, especially in areas like Brisbane where the median home value is $843,231, according to the latest CoreLogic data.
- The Queensland Government plans to increase land tax surcharges on foreign investors to offset the increase in stamp duty concession threshold.
The Queensland Government announced on Sunday the policy commitment that will increase the first home buyer stamp duty concession threshold to $700,000, up from the current $500,000 value cap.
Partial concessions are also available for Queenslanders purchasing their first home valued at up to $800,000, with exact details to be confirmed when the state budget is announced on Tuesday.
The threshold for concessions on vacant land will also rise from $250,000 to $350,000, with partial concessions available for land purchases up to $500,000.
Queensland's stamp duty value thresholds were enacted 15 years ago and haven't been updated since.
Half a million dollars 15 years ago is worth nearly $720,000 today when adjusted for inflation.
|
Property Value |
Old Stamp Duty Cost |
New Stamp Duty Cost |
|
$500,000 |
$0 |
$0 |
|
$550,000 |
$10,600 |
$0 |
|
$600,000 |
$12,850 |
$0 |
|
$650,000 |
$17,529 |
$0 |
|
$700,000 |
$17,350 |
$0 |
The change to transfer duty concessions is expected to support around 10,000 first home buyers a year, according to the Queensland Government.
In the past four years, around $216 million in transfer concessions have applied to 17,660 first home buyer transactions in Brisbane alone.
A further 76,241 homeowners also benefitted from the transfer duty concessions applied to the purchase of their Brisbane home.
The policy change in the Sunshine State came in less than a week after South Australia updated its stamp duty measure, with the value threshold abolished for all eligible first home buyers buying new properties.
Months earlier, the Queensland Government doubled its first homeowner grant, with eligible recipients receiving as much as $30,000.
Improved concession threshold: Good but not enough
The Real Estate Institute of Queensland (REIQ) welcomed the government's reform on the "extremely outdated" $500,000 stamp duty concession threshold, given declining first home buyer activity.
Although the $700,000 threshold is a marked improvement on the 15-year policy, REIQ chief executive officer Antonia Mercorella argues the value cap remains lower than needed, especially in areas such as Brisbane where the median home value currently sits at $843,231.
"The current $500,000 threshold has rendered the stamp duty concession virtually redundant for first-time buyers given material shifts in property prices," she said.
Brisbane is now the second-most expensive city in Australia for homebuyers after it surged ahead of then-second-to-Sydney Canberra, according to data released by CoreLogic last week.
Earlier this year, the Sunshine State surpassed Melbourne to take the third-highest median dwelling value among capital cities.
Brisbane's overall property prices have increased at more than five times the pace of Melbourne's values since the pandemic (59.8% vs 11.2% growth).
Increased foreign investor land tax surcharge to offset stamp duty reform
The Property Council of Australia's Queensland division has slammed the government's plan to raise the land tax surcharge on foreign investors to offset the costs of the increased stamp duty concession threshold.
The state budget will see the foreign land tax surcharge increased to 3%, one percent below New South Wales and Victoria.
Transfer duty surcharge for foreign buyers will also be brought in line with NSW and VIC at 8%.
The council's Queensland executive director Jess Caire labelled the move to raise what she calls "apartment killer" taxes "a race to the bottom".
Queensland, unlike NSW, taxes companies that have a portion of foreign ownership - the companies, Ms Caire said, that build the new homes and apartments the first home buyers will buy.
"Increasing a tax on these companies will only drive up the cost of housing, further squeezing first home buyers out of the market," she added.
Given that the Queensland Government raked in $3.5 billion in transfer duty in the last three years, industry experts believe the stamp duty ceiling could be raised without imposing further taxes.
"This is just another example of double-dealing," Ms Caire said.
The Property Council has further lashed the move for its impact on investor confidence, stating the tax makes Queensland uncompetitive and sends a message that the state is not open for business.
REIQ also raised concerns about the increased taxes for overseas investors.
"It seems counterintuitive that concessions are on offer for large overseas multinationals to take profits out of Queensland in the form of built-to-rent, but those looking to invest in other products that provide supply are being punished," Ms Mercorella said.
"We believe it should be a level playing field for all."
Photo by cottonbro studio on Pexels
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