With home ownership levels steadily on the decline in Queensland, the REIQ is calling for an overdue revision and uplift to the stamp duty concession threshold rates for first home buyers.
As it stands, Queenslanders can buy their first home and pay no stamp duty provided the property is under $500,000.
REIQ CEO Antonia Mercorella said the peak body is advocating for the concessional threshold for first home buyers increased to at least $750,000 to reflect current day property prices.
“The average cost of an entry level property has rapidly outpaced the current threshold of the first home buyer’s concession being $500,000 and has not been reviewed since 2008,” Ms Mercorella said.
“Comparing the threshold to the annual median house price for Greater Brisbane of $760,500, and for Brisbane LGA of $1 million* it raises the question of the effectiveness of a first home buyer stamp duty concession when the ability to utilise it is severely limited.
“While we are yet to see any appetite from the State Government to tackle the inefficient and regressive tax that is stamp duty, a sensible interim measure would be to lift the concessional threshold for first home buyers to a figure of at least $750,000.
“With decade low numbers of first home buyers accessing the concession, it would be a sensible starting point for the suite of stamp duty reforms that the REIQ have been strenuously advocating for over many years.”
Ms Mercorella said stamp duty was a key part of the housing affordability and accessibility issue.
“Stamp duty can add tens of thousands to the overall cost of buying a new home which stifles housing mobility,” she said.
“Over the past 10 years we have seen stamp duty on property transfers nearly triple; however, there has been no commensurate investment in the provision of infrastructure for new housing or social housing.
“At an Estimates hearing in July 2021, the Treasurer previously ruled out reforming stamp duty in Queensland arguing that it was affordable, but we think it’s time to review that decision as Queensland has the lowest levels of home ownership in the country.
“The Queensland Government recently announced its intent to help more Queenslanders buy their first home, and one of the biggest obstacles to home ownership is stamp duty, so reforming stamp duty would be a powerful move towards that goal.”
First home buyers in Queensland may be eligible to save on the cost of stamp duty, especially when buying vacant land.
Provided it is to build a first home, there is zero stamp duty as long as it is for less than $250,000. Concessions are available for vacant land valued above $250,000 and up to $400,000.
As it stands, a first home valued up to $500,000 attracts zero stamp duty. That’s a saving of up to $15,925, which is the maximum stamp duty rebate available.
Additionally, savings on stamp duty may still be available for a first home between $500,000 and $550,000. As a guide, if the first home is worth $530,000, stamp duty is $6300 – a saving of $3500. These savings cut out altogether if the first home costs $550,000 or more.
*Source CoreLogic – House Median Sales – September 2023 Quarter
