Mixed bag from the State Budget

THE property sector received mixed news in the State Budget, handed down by Treasurer Jackie Trad.

The REIQ welcomed news that the First Home Owners Grant was going to be extended for another 12 months, however, was disappointed that it would be reduced to $15,000 and would not be extended to include established homes.

"Disappointed, is the best way to describe how we’re feeling about this lack of action from the Treasurer on the grant being applied to established homes.

"Regional Queensland desperately needs buyers to absorb some of that excess supply and the grant could help first home buyers enter the market.

"However, it would be overstating to say there was no good news in this Budget. We are happy the FHOG has been continued, even though it is at the reduced rate.

“It will continue to stimulate construction and employment, although this benefit will continue to mostly be felt in the southeast corner," Ms Mercorella said.

The real estate sector is one of the largest employers in Queensland, with thousands of small businesses throughout the state employing around 50,000 people. These small businesses are the backbone of the Queensland economy and will benefit from the payroll tax rebates available to them for trainees and apprentices.

In addition, the $45.8 billion spend on infrastructure investment in Queensland over the next four years will benefit the livability factor and improve desirability of real estate in areas where those projects will happen.

The Foreign Acquirer Duty has increased from 3 per cent to 7 per cent, representing a backflip from the 2015 position where then-Treasurer Curtis Pitt declared foreign buyers would not be taxed. In 2016, a 3 per cent tax was introduced and now this tax has more than doubled.

"Taxing foreign buyers is a measure best suited to markets where affordability is an issue. That is not the case in Queensland.

"We are affordable and we welcome all buyers to our real estate markets," Ms Mercorella said.

The REIQ was also disappointed that the State Government chose to drag its feet on stamp duty reform, ignoring expert advice that the stamp duty was a regressive, outdated form of property taxation that stifled housing mobility.