Key Points:
- Queensland's first home buyer stamp duty concession threshold increased from $500,000 to $700,000.
- Partial concessions available for homes valued up to $800,000.
- First home buyers can save up to $17,530 on stamp duty costs.
- The policy change is estimated to benefit around 10,000 first home buyers annually.
- The concession threshold for vacant land raised from $250,000 to $350,000.
- Foreign investor land tax surcharge increased to 3% to fund the new concessions.
- The transfer duty surcharge for foreign buyers will rise to 8%.
Stamp Duty Savings for First Home Buyers in Queensland
The Queensland government has introduced new measures to help first home buyers. The threshold for stamp duty concessions has been raised to $700,000 from the previous $500,000, with partial concessions available for homes valued up to $800,000. This change aims to make home ownership more accessible amidst rising property prices.
| Property Value | Old Stamp Duty Cost | New Stamp Duty Cost |
|---|---|---|
| $500,000 | $0 | $0 |
| $550,000 | $10,600 | $0 |
| $600,000 | $12,850 | $0 |
| $650,000 | $17,529 | $0 |
| $700,000 | $17,350 | $0 |
For those purchasing vacant land, the threshold for concessions has been increased from $250,000 to $350,000, with some concessions still applying for land valued up to $500,000. This policy is expected to assist around 10,000 first home buyers each year, potentially saving them up to $17,530 in stamp duty costs.
These changes come in response to the significant increase in property values across Queensland, particularly in Brisbane, where the median home value has surged to $843,231. This makes Brisbane the second most expensive city in Australia, behind Sydney.
Foreign Investor Land Tax Surcharge To Increase
To offset the cost of these concessions, the Queensland government will raise the foreign investor land tax surcharge to 3% and the transfer duty surcharge for foreign buyers to 8%, aligning with rates in New South Wales and Victoria.
The Real Estate Institute of Queensland (REIQ) has welcomed the update, noting that the previous $500,000 threshold was outdated given the current property market. However, there are concerns that even the new $700,000 threshold may still be too low for areas like Brisbane, where property prices continue to climb.
The Property Council of Australia's Queensland division has criticized the increased taxes on foreign investors, arguing that it could deter investment and drive up housing costs, making it even harder for first home buyers.
Overall, these new measures are a significant step towards making home ownership more attainable for first-time buyers in Queensland, although some believe more needs to be done to keep pace with the rapidly increasing property market.
New QLD First Home Stamp Duty Concession rates came into effect on June 9, 2024 and have already been updated in our QLD Stamp Duty Calculator.