In a bid to ease the burden on first home buyers and make homeownership more accessible, the Queensland government has announced significant changes to stamp duty thresholds. These measures, unveiled as part of Labor’s pre-election budget, aim to provide relief to aspiring homeowners facing affordability challenges in the state.
The key highlights of the announcement include:
- Increased Stamp Duty Threshold: The threshold at which first home buyers begin paying stamp duty will be raised from $500,000 to $700,000. This means that first home buyers purchasing established homes up to $700,000 will be exempt from paying stamp duty. Additionally, partial concessions will be available for properties valued between $700,000 and $800,000. These changes could potentially save a first home buyer up to circa $17,000 on a $700,000 home purchase, due to the increased limit.
- Vacant Land Concessions: The threshold for the first home vacant land concession will increase from $250,000 to $350,000. First home buyers purchasing vacant land up to $350,000 will be eligible for a full stamp duty exemption, with concessions available for land valued between $350,000 and $500,000. First home buyers purchasing land at $350,000 could potentially save around $8,250 in stamp duty, once again, due to the increase in the cap.
- Continuation of First Home Owners Grant (FHOG): The $30,000 FHOG for the purchase or construction of brand new homes will be maintained. The FHOG will have a price cap of $750,000, providing further support to first home buyers looking to enter the property market.
- Impact on First Home Buyers: These changes are expected to benefit around 10,000 first home buyers each year in Queensland. By reducing the costs associated with purchasing a home, including stamp duty, the government aims to help first home buyers achieve their dream of homeownership sooner.
- Economic Boost: The removal of stamp duty for vacant land and the increased thresholds for established homes are expected to stimulate demand for new housing, leading to the creation of more jobs and boosting the economy. Some commentators have concerns this will also drive demand, leading to even higher house prices, particularly in the sub $700,00 price range.
- Offsetting Revenue Loss: To offset the revenue loss from these concessions, the government plans to increase the stamp duty and land tax rates for foreign investors. The foreign investor land tax surcharge will rise to 3%, and the transfer duty surcharge for foreign buyers will be adjusted to 8%.
Your Brisbane Home Loans experts are here to walk you through these changes and assist you with detailed information so that you can make an informed decision about what this means for you and how you wish to proceed.
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