Budget delivers on support for aspiring first home buyers

The Real Estate Institute of Queensland (REIQ) is welcoming the LNP Government’s first-in-a-decade State Budget, applauding a modern shared equity scheme and streamlined tax relief for foreign-owned housing projects.

Over the two-year pilot, the $165 million shared-equity scheme will support 1,000 aspiring first homeowners across Queensland with as little as 2% savings to “close the deposit gap”, offering up to 30 per cent equity for new homes and up to 25 per cent for existing homes. Additionally, the scheme will be available for properties up to $1 million in value (previously announced as $750,000 during the election).

The scheme was announced as an LNP election commitment and reflects positions outlined in the REIQ’s 2024 State Election policy platform, Levelling the Playing Field.

Shared equity support expanded

REIQ CEO Antonia Mercorella said broadening the ‘Boost to Buy’ scheme was a smart, timely step to match market conditions and help more Queenslanders take their first step into home ownership.

“We called for expanded access to shared equity because we know high deposit hurdles are keeping aspiring buyers from getting onto the property ladder,” Ms Mercorella said.

“With suitable income eligibility thresholds of $225,000 for couples and $150,000 for singles and a statewide property value cap of $1 million, the scheme reflects modern property prices across Queensland and makes it the most attractive in the nation.

“In Greater Brisbane, the annual median house price is $895,000, and in the Brisbane LGA it's $1.21 million.

“Even for units, annual median unit prices are $770,000 and $735,000 for the Gold Coast and Sunshine Coast respectively.

“The generous cap ensures the scheme is relevant in all corners of our state including high-demand areas like Brisbane, the Gold Coast, and Sunshine Coast, where the median house price now sits above $1 million. Without this adjustment, the scheme risked being out of touch with the reality faced by many first home buyers today.

“With limited placements and a strict focus on first home buyers, this is a measured and proportionate support mechanism. It represents a small share of overall market activity, is unlikely to distort demand, and may assist in rebalancing housing pressure by helping some renters transition into ownership.

“However, I don’t think we can underestimate the material impact this can have on thousands of lives and for generations to come.”

Streamlined ex gratia process to support housing delivery

On the supply side, the REIQ applauds the move to streamline Queensland Revenue’s ex gratia relief process for foreign-owned housing projects that deliver economic or community benefits.

“When housing projects meet the public interest test, whether by enhancing community outcomes or increasing much-needed housing stock – then relief from punitive surcharges should be a straightforward and swift process,” Ms Mercorella said.

“Foreign entities cop extra surcharges despite being instrumental in delivering new housing supply. Until now, ex gratia relief has been available, but the process has been slow and uncertain, making it unworkable for many projects.

“Today’s Budget commitment to reform and fast-track this relief is an encouraging step that will drive capital to Queensland and help get more housing projects off the ground.

“It also responds to concerns that Queensland has become less attractive to foreign capital, due to foreign investor surcharges introduced and increased in recent years.”

What next for housing

Ms Mercorella said today’s Budget builds on REIQ’s election policy calls and reinforces the view that housing must stay front and centre.

“Today’s wins are welcome – however, we caution that the supply crisis remains Queensland’s most pressing housing challenge,” Ms Mercorella said.

“We recognise that the Budget materialises funding and builds on a number of previously announced and continuing housing initiatives that aim to address the imbalance.

“These include investing in infrastructure to activate housing land sooner, funding to improve council planning schemes, a state-wide housing code review, a construction productivity inquiry, and the re-establishment of the Property Consultative Committee to improve tax and housing policy.

“Importantly, there is also funding for social and community homes, specialist homelessness services and crisis accommodation and housing supports ensuring the most vulnerable Queenslanders are supported.

“Stamp duty reform remains high on our wish list. It is a long-standing policy direction of the REIQ to see a phased transition to a land tax-based model starting with first home buyers, as well as abolishment of stamp duty for downsizers aged over 55 moving to a home with fewer bedrooms or a retirement home.

“We’ve seen a promising start with some relief for first home buyers through higher stamp duty concession thresholds, abolishment of stamp duty on new builds, and the removal of restrictions on renting out rooms, and now we’d like to see some relief extended to people at the opposite end of the housing cycle - downsizing Queenslanders.

“We’re hearing calls to remove barriers that delay older Queenslanders from downsizing – a stamp duty exemption would achieve this and also, in turn, allow younger families to upsize.

“The Government is expecting to raise over $45 billion in taxes over the next four years from the property sector, and with this windfall we’ll continue to push for the next steps towards reform.

“The REIQ looks forward to continuing working with the Government to help drive housing reform across tax, planning, and productivity.”

ENDS

Media enquiries:
Claire Ryan, Media and Stakeholder Relations Manager, The Real Estate Institute of Queensland
M: 0417 623 723 E: media@reiq.com.au

Read another media release from the REIQ: Queensland property stands the test of time, says REIQ.

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