First Home Buyers’ Transfer Duty Concession Threshold Raised in Queensland.

If you’re a prospective first home buyer in Queensland, you may be able to save significantly on transfer duty!

With an election on the horizon, Queensland Premier Steven Miles has announced they’re raising housing value cap for transfer duty concessions.

What’s changed?

The transfer duty concession expansion will cover homes valued up to $700,000, an increase from the previous $500,000 threshold. Queensland property prices surged over the last year. The median property value in Brisbane currently sits at $937,479 (Corelogic, June 2024). This increase in threshold will hopefully help first home buyers enter the property market sooner.

eligible home buyers could potentially save up to $17,000.

Mr. Miles stated “By increasing the eligibility threshold, we are giving aspiring homeowners a fairer go.”

“This is a real cost of living measure, that will also help deliver inter-generational prosperity. The concessions will put the dream of owning a first home within reach of more Queenslanders,” he said.

Transfer duty concession threshold for vacant land will increase from $250,000 to $350,000.

Breaking it down

First home buyers will pay zero for transfer duty on properties valued below $700,000.

This means that the concession cap is now in line with Brisbane, Gold Coast and Sunshine Coast’s Home Guarantee Scheme cap of properties valued up to $700,000 (worth noting the Home Guarantee scheme for the rest of Queensland is only $550,000).  The threshold raised on 18th June 2024.

Are there potential downsides?

To cover the cost of these measures, Mr. Miles said that foreign investors will see their land tax surcharge increased to 3%.  Property Council of Australia Queensland Executive Director Jess Caire criticised the land tax surcharge increase, saying “This shows a lack of understanding about the development pipeline, as more often than not it’s companies with a portion of foreign ownership or overseas institutional investment that are delivering the homes our state desperately needs.”

“Increasing a tax on these companies will only drive up the cost of housing, further squeezing first home buyers out of the market,” Ms Caire said. (Property Council of Australia, 9/6/24). Interestingly, the Australian Government recently announced incentives for build-to-rent developments nationally, signifying a changing tax landscape for foreign investors.

If you’d like to learn more about how these measures may impact your borrowing capacity and loan options, or if you’d just like to chat to someone about your homeownership goals, reach out to your local MoneyQuest broker today.

If you’re new here and not sure how to get in touch, simply call 1300 886 100, or visit moneyquest.com.au and fill out the enquiry form.

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