Housing concession wars: Aus ‘most attractive’ handout revealed

The $1m price threshold and $150k individual salary eligibility is set to allow more FHBs to buy in places like Brisbane. Picture: Darren England

In a daring move, an Aussie state is shaking up the housing concession wars, giving the ‘most attractive in the nation’ chance to house hunters to buy their first home.

The move, announced in the Queensland budget by treasurer David Janetzk on Tuesday, has seen wide support from real estate lobby groups in the first LNP state government budget here in a decade.

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Queensland housing minister Sam O’Connor, Premier David Crisafulli and REIQ CEO Antonia Mercorella at the site of a new housing development in Capalaba. Picture: Liam Kidston

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The scheme will allow 1,000 buyers to land their first home off just a 2pc deposit as part of a $165m “close the deposit gap” program, with the government sharing the equity load up to 30pc for new homes and 25pc for existing homes – and access expanded for workers that earn up to $150,000 or couples bringing in up to $225,000.

The program – which opens for expressions of interest in a week (July 1) – covers properties up to $1m across Queensland to take into account record price surges since the pandemic – a threshold that’s $250k jump on what LNP campaigned for during the election period.

Given the government expects to raise over $45b in taxes from the property sector over the next four years, Real Estate Institute of Queensland head Antonia Mercorella came out in support of the initiative as well as future reform.

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

1,000 first home buyers are set to tap into the expanded scheme across Queensland. Picture: AAP Image/Dave Hunt

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Property Council Queensland executive director Jess Caire also welcomed the move to a more housing focused budget.

“Responding to the housing crisis is clearly a focus of this budget with significant spending allocated towards creating new supply, community housing and helping first home buyers get their foot in the door of the housing market,” she said.

“The $165m Boost to Buy scheme was an ask in our 2024 Be a Queenslander election campaign and an initiative that will help many Queenslanders realise the dream of home ownership.”

Ms Mercorella said Brisbane local government area median house prices had already passed the million-dollar median mark, while Greater Brisbane was close, with units also surpassing the $700,000 level across the Gold and Sunshine Coasts.

“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 $1m. Without this adjustment, the scheme risked being out of touch with the reality faced by many first home buyers today.”

REIQ CEO Antonia Mercorella is hopeful a solid reform program will also be put in place soon. Picture: Liam Kidston

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She did not expect the program to distort property demand given FHBs made up a small share of overall market activity, but said it “may assist in rebalancing housing pressure by helping some renters transition into ownership”.

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

Among the areas still on REIQ’s wishlist for the state was stamp duty reform in favour of a land tax-based model, and abolishing stamp duty for downsizers over 55.

“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.”

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