Relief as State Budget holds steady on housing, says REIQ

The Real Estate Institute of Queensland (REIQ) says the Queensland Government’s 2026–27 State Budget provides a refreshing sense of stability for the housing sector, with no new taxes or withdrawal of existing relief measures at a time of heightened uncertainty.

REIQ CEO Antonia Mercorella said given global uncertainty and significant taxation changes at the Federal level, a State Budget that maintains a stable revenue and housing taxation environment was critical for market confidence.

“After recent Federal Budget changes that have added complexity and uncertainty to housing, we’re relieved to see a steady hand on the tiller in Queensland,” Ms Mercorella said.

“With $12.3 billion allocated across housing initiatives, this is a Budget that’s doubling down on housing with substantial funding directed toward supply, social housing, and first home buyer support.

“The scale of this investment aptly reflects the urgency of Queensland’s housing challenges and reinforces the Government’s housing agenda, but funding alone won’t resolve the housing supply imbalance.

“We need to see ongoing progress in planning reform, tax settings, and construction productivity to ensure these investments translate into real housing outcomes.”

Ms Mercorella said the expanded funding for initiatives to accelerate housing supply were among the most encouraging elements of the Budget.

“Doubling the Residential Activation Fund again to $1 billion is a clear acknowledgement that infrastructure remains one of the biggest barriers to getting new housing off the ground,” she said.

“Continued investment in programs such as the Land Activation Program, Infrastructure Activation Fund and State Facilitated Developments are all contributing to a stronger pipeline.

“We also welcome the Government doing its part to build with an additional $1.024 billion investment over five years in social and community housing, contributing to a record $5.7 billion program.

“It’s also encouraging to see the Gabba Entertainment and Housing Precinct with its own boosted budget item line to progress this key inner-city project.”

The REIQ said that importantly, funding continuity was maintained for frontline housing and homelessness services with an additional $450 million boost, alongside $83 million for rental assistance programs, and an additional $18.5 million to support operations of the Residential Tenancies Authority.

“Ensuring vulnerable Queenslanders have access to safe and secure housing must remain a priority, and it’s positive to see continued investment in this space,” Ms Mercorella said.

“Funding continuity for frontline housing and homelessness services is also critical to supporting those at risk of falling through the cracks, particularly as affordability and cost-of-living pressures persist.

“At the same time, well-resourced regulatory oversight and independent support is essential to ensure confidence and stability across the rental market.”

First home buyer support boosted – but could be broadened

The continuation of the $30,000 First Home Owner Grant (FHOG) with $72 million funding over four years, and ongoing investment in the $330 million Boost to Buy shared equity program were welcomed as targeted first home buyer supports.

“These initiatives help address one of the biggest hurdles for first home buyers, which is getting together a deposit,” Ms Mercorella said.

“However, we believe there’s room to expand the First Home Owner Grant to include established housing - to better reflect how the market operates across much of Queensland, particularly in regional areas where new supply is limited.”

What’s missing: Stamp Duty reform

Ms Mercorella said stamp duty reform remains a key advocacy priority for the REIQ and Queensland could look to other jurisdictions for inspiration.

“Stamp duty reform remains a key lever that has yet to be fully pulled. It continues to act as a barrier to mobility and home ownership, and we would like to see a pathway toward a more efficient system,” she said.

“Stamp duty revenue has been revised down in the 2026-27 budget, compared to 2025-26 actuals – reflecting the impact of recent Federal changes and highlighting the volatility of relying on market-driven revenue.

“While we welcome the Queensland Government’s moves to abolish stamp duty for first home buyers on new homes, and have this now firmly legislated, there is still room to extend this relief.

“The ACT Government has recently taken a nation-leading step by moving to abolish stamp duty for a broader range of buyers - including first home buyers, those re-entering the market after time away, and eligible pensioners.

“These are the types of bold reforms that improve mobility, unlock housing supply, make better use of existing stock and attract buyers to Queensland.”

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

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