Queensland budget to include cheaper stamp duty for first home buyers

Queensland Premier Steven Miles, who faces a heavy election defeat later this year, announced another major spending measure in Tuesday’s state budget.

The Labor government is increasing the stamp duty discount for Queenslanders buying their first home, saving them up to $17,350.

“I want young Queenslanders to have more opportunities than their parents, including the opportunity to own their own home. I want that for my kids too,” Mr Miles said on Sunday.

“This is a real cost of living measure that will also contribute to intergenerational prosperity.

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

Mr Miles, who replaced Annastacia Palaszczuk last December, is gearing up for an uphill battle in the October 26 election, with polls suggesting it will be a battle for Labor for a fourth term.

The government has already announced measures in the budget, which they say are aimed at solving the cost of living, but also with an eye on the elections.

They include a 50 cent discount on public transport fares, a $1,000 reduction in electricity bills for every household, a 20 per cent discount on car registration for 12 months and more fair play vouchers for children’s sports.

The government says the stamp duty concession would make it easier for Queenslanders to buy a home.

The threshold for a homeowner’s first stamp duty concession will rise from $500,000 to $700,000, after which the concession will be phased out to $800,000.

The concession threshold for the first vacant plot will also increase from USD 250,000 to USD 350,000, with the concession then phasing out to USD 500,000.

The budget measure is estimated to benefit around 10,000 customers.

To offset demand from increased purchasing power for first home buyers with increased transfer duty concessional thresholds, the Miles government increased the additional land tax for foreign investors to 3 per cent.

The land tax mark-up for foreign investors in Queensland remains lower than other major states, with both NSW and Victoria setting their mark-ups at 4 per cent.

Deputy Prime Minister and Treasurer Cameron Dick was quoted as saying foreign buyers would face higher costs to offset the cost of the new measure.

“Foreign investors have had a lot of success in Queensland, but they are competing with Queensland families for property, so it’s only fair that they contribute to helping more young Queenslanders get their first home,” Mr Dick said.

“Our approach to revenue ensures that tax breaks are always offset so we can continue to provide services and infrastructure, while the LNP will cut services because they’re just cutting revenue to help multinationals.”

Housing Minister Meaghan Scanlon said the stamp duty concession was in addition to the increase

First Home Owner Grant and the Queensland Government’s participation in the Albany Government’s Help to Buy programme.

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

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