QLD ups stamp duty threshold to $700,000 for first home buyers
The Queensland government has raised the first home buyers stamp duty concession threshold to $700,000 from $500,000 in value. This shift is meant to help first home buyers to access affordable houses to meet their demand in Queensland.
What is Stamp Duty?
Stamp duty is one of the taxes charged and collected by state and territory governments when acquiring properties in Australia. It is based on the cost of the property you purchased or the original price of the property. In the past, in Queensland, first homeowners need not pay stamp duty if they acquired a house valued less than $500,000. For instance, earlier, first home buyers could only buy homes up to a value of $500,000 to avoid stamp duty.
In addition, the following are other details that relate to the shift being promoted:
- The stamp duty has been increased from $500,000 to $700,000 in the case of first homes only.
- For first home buyers, those who intend to buy homes with a value not exceeding $700,000 will be exempted from stamp duty payment.
- It is important to note that the concession for using this is open only to homes that have been newly constructed.
Intended Benefits
The idea of raising stamp duty is to help first time home buyers in Queensland afford homes by extending the threshold for stamp duty.
Specific expected benefits include:
More Housing Options
The higher threshold means that first home buyers can afford more housing in Queensland and increase the range of houses available to them.
Improved Accessibility
New convenient residences, decent family sized homes rather than small flats may now be within reach of more first home buyers in many areas of Queensland, given a higher stamp duty exemption level.
Boost Economic Growth
First home buyers benefit from owning their homes helping the property industry and creating more economic activity for Queensland. The first home buyers are, therefore, an essential segment of the property and construction industry within the state.
Decentralisation of Growth
Suburbs with median house prices close to $500,000, outside Brisbane, look more attractive and affordable. It could also help promote decentralisation of population increases other than the states capital.
How Other States Compare
One has to note that Queensland follows Victoria, and New South Wales which offers first home buyers a $700,000 stamp duty break. Currently, only four states have thresholds at $500,000 or less, and these include Western Australia, South Australia, Tasmania, and the ACT. Therefore, Queensland’s policy aligns it with the other bigger states regarding implementing such a policy.
Possible Paths for First Home Buyers
For people who are the first home buyers in Queensland and are planning to buy a house that costs less than $700,000, you need to ensure that you qualify for this incentive. This is an excellent time to reconsider your financial situation and potential properties at a new level. Discern the change from your lender or broker. You may negotiate and try to alter your borrowing power. All in all, it is a policy change that seeks to help more Queenslanders achieve their aspirations of home ownership.