Stamp duty will be scrapped for some first home buyers in Queensland, after the state parliament passed new laws to reduce up-front costs.
The Revenue Legislation Amendment Bill will deliver “major cost-of-living relief” according to the government, which said it was one of its key commitments to delivering a “fresh start for Queensland”.
It is estimated about 3,000 first home buyers will benefit from the changes each year.
“While it might not be everyone’s dream to own a home, our government wants to make it more achievable for every Queenslander who wants to,” Treasurer David Janetzki told parliament.
What’s changing?
From 1 May 2025, first home buyers purchasing a new build will no longer need to pay stamp duty.
The costly tax, also known as transfer duty, can be a major barrier to home ownership, which was highlighted in submissions to the government about the legislation.
QShelter acting chief executive Jackson Hills said stamp duty was a high up-front cost disadvantaging aspiring first home buyers.
The new laws will also allow first home buyers to rent out a room in their first 12 months of ownership.
How much could you save?
A first home buyer purchasing a new house and land package in Toowoomba at the median price could save $24,730.
In Brisbane’s east, buyers would save $29,500 when purchasing a new build at the median price, while in Logan-Beaudesert, they would save $6,960.
According to the Queensland Revenue Office’s transfer duty estimator, the table below shows how much a buyer might have paid in stamp duty as a first home buyer on a new property in locations across the state.
Last year, the first home buyer concession threshold for stamp duty was increased to $700,000, meaning you wouldn’t have to pay the tax on properties below this value.
The median property price for regional areas including Cairns, Townsville, and Toowoomba fall under this mark.
Calls for law changes to go further
Real Estate Institute of Queensland chief executive Antonia Mercorella questioned how effective abolishing the tax would be.
“In our view, the use of the new concessions may be limited to an extent,” she noted in her committee submission.
“The completion rates of new homes and rates of building approvals in Queensland are presently below the historical average, particularly in regional Queensland.”
She recommended the government go further and offer a stamp duty exemption to Queenslanders aged 55 and over to incentivise downsizing.
“Offering a stamp duty exemption will remove the financial barrier for those older Australians who are minded to downsize, leading to a greater supply of larger homes within the housing market and generational changes for houses and neighbourhoods,” she said.
In its submission, the Local Government Association of Queensland (LGAQ) recommended expanding the concession to existing homes that required renovation or refurbishment.
The opposition supported the legislation, but shadow treasurer Shannon Fentiman told parliament it was concerned the policy would mostly benefit high-income earners.
“Someone buying a $2 million property would receive nearly six times as much in first home tax support as a first home buyer purchasing a median property in Bundaberg,” she said.
This article first appeared in abc.net
