Is Qld headed for a stamp duty shake-up?
Ahead of an October election, Queensland’s politicians are promising some big housing policy announcements.
On Monday, 29 January, Liberal National Party (LNP) treasury and home ownership spokesperson David Janetzki announced that the LNP would review the first home buyer stamp duty concession, in particular considering raising the cap on the maximum amount a buyer can spend on a home and still remain eligible for the scheme.
Currently, Queensland first home buyers can avoid paying stamp duty on homes bought for $500,000 and below. A transfer duty discount is available on homes bought for between $500,000 and $550,000. But as prices across the state have rapidly increased over the past several years, it appears fewer and fewer buyers are taking part in the scheme.
The state reported that in the 2021 financial year, more than 27,500 Queenslanders benefitted from the concession. In 2022 that fell to 23,007, while the end of the 2023 financial year recorded just 16,950 recipients.
Mr Janetzki commented that Queenslanders eager to get onto the property ladder are now finding it “almost impossible” to search for a home that would allow them to be eligible for the concession.
While Mr Janetzki did not promise that the LNP would make any changes to the policy should power change hands in October, he confirmed the party would be reviewing the program and announcing its position ahead of the vote.
“The LNP can announce today it will review stamp duty thresholds, to increase home ownership in Queensland,” Mr Janetzki said.
“We are considering all options to help Queenslanders into home ownership, including boosting land supply, incentives and tax relief,” he added.
Meanwhile, Queensland Premier Steven Miles noted on Monday to the press that the government is set to announce its new housing plan early in the year, previewing that it will be organised around the five endeavours of building more homes, supporting renters, helping people into home ownership, delivering more social homes, and working towards ending homelessness.
There has been speculation that the government’s broad plan might also include a change to the first home buyer stamp duty concession threshold, but an official announcement is not set for at least another few weeks.
The Real Estate Institute of Queensland (REIQ), which has long advocated for the stamp duty cap to be lifted – most recently suggesting that it should sit at $750,000 – welcomed the news that the policy was being examined.
“Considering the relative affordability of housing in Queensland compared to the southern states, it’s quite concerning that home ownership levels in the Sunshine State are the lowest in the country,” said REIQ CEO Antonia Mercorella.
“Many Queenslanders have proven they are able to meet their weekly rental payments and are confident that they can make the required mortgage repayments; it’s just the initial obstacle of coming up with the deposit and stamp duty upfront that feels impossible to tackle,” she added.
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