Queensland government cuts transfer duties for some first home buyers in election push

Queensland government cuts transfer duties for some first home buyers in election push
  • PublishedJune 9, 2024

The Queensland government has added lower transfer costs for some first home buyers to its list of budget sweeteners as competition heats up for votes in October’s election.

The policy, announced Sunday, will see first home buyers receive concessions on transfer duties for properties valued up to $700,000, up from the previous $500,000.

The threshold for concessions will also rise on on vacant land valued up to $350,000, from $250,000. 

The government said the change would save some eligible home buyers as much as $17,000 dollars, with the figure varying according to the value of the home or land.

“This is a real cost of living measure, that will also help deliver inter-generational prosperity. The concessions will put the dream of owning a first home within reach of more Queenslanders,” Premier Steven Miles said.

However, shadow treasurer David Janetzki called the initiative a “major win” for the Liberal National Party — saying it proposed a similar measure in January that Mr Miles had “rubbished”.

“Today, just months from an election, Steven Miles has shockingly backflipped and adopted the LNP’s policy as his own,” Mr Janetzki said.

In January the LNP said it would review transfer duty thresholds for first home buyers but didn’t commit to a figure as data showed that fewer first home buyers were eligible for a concession due to rising house prices.

House prices have continued to climb nationwide, despite a cost of living crisis, putting Brisbane second only to Sydney as the most expensive state capital.

The mean price for a residential dwelling in Queensland rose to $828,000 in December 2023, according to the Australian Bureau of Statistics.

That’s above the figure of $800,000, when the concession phases out, according to the government’s plan. The concessions on land sales will phase out at $500,000. 

Mr Miles said the government would cover the cost of the measure by increasing the foreign investor land tax surcharge to 3 per cent. 

The transfer duty surcharge for foreign buyers will rise to 8 per cent, in line with New South Wales and Victoria.

Opposition Leader David Crisafulli had already said the LNP would honour every commitment made by Labour in its budget to be handed down on Tuesday.

Mr Crisafulli said he wanted to give voters stability, but the pledge has been criticised by Labor as “unprecedented” and by one commentator as “absolutely absurd”.

The Labor government has announced a number of temporary measures to address the cost of living in recent weeks including slashing the cost of public transport and cutting car registration fees.

SOURCE: ABCNEWS

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