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Experts are urging the Queensland state government to follow New South Wales\u2019 reforms on stamp duty.<\/p>\n
Real Estate Institute of Queensland (REIQ) CEO Antonia Mercorella said the 2022-2023 Queensland State Government Budget failed to address stamp duty reforms and any other housing plans that would help boost homeownership in the state.<\/p>\n
\u201cStamp duty significantly hinders home ownership, discourages housing turnover, and restricts mobility, and its abolishment would open doors in Queensland for many,\u201d she said.<\/p>\n
\u201cThat\u2019s why we\u2019ve long advocated for a 10-year phase-out program and eventual abolishment of stamp duty by first introducing stamp duty exemptions allowing older Queenslanders to \u2018right size\u2019 into more suitable homes, and ultimately, replacing stamp duty with a broad-based land tax.\u201d<\/p>\n
Recently, the New South Wales state government announced the First Home Buyer Choice initiative, which would provide borrowers with an option to pay an annual land tax instead of paying stamp duty upfront.<\/p>\n
RSM partner Sam Mohammad said it is disappointing that this year\u2019s Queensland State Budget was not able to shed light on stamp duty reforms, especially given NSW\u2019s announcement and the overall impact of rising house prices amid increasing interest rates.<\/p>\n
\u201cDespite the swelling of the state\u2019s coffers due to stamp duty, none of the additional revenue is to be returned to Queenslanders in the form of stamp duty relief \u2014 once again, stamp duty remains the forgotten child in Queensland from a tax reform perspective,\u201d he said.<\/p>\n
\u201cBy contrast, resonating strongly with most tax experts, first-home buyers and industry groups, New South Wales\u2019 alternative system of an opt-in land tax could make home ownership more accessible, support household mobility and better facilitate economic growth and prosperity for Queensland, and we would like to see this canvassed beyond the Queensland Budget.\u201d<\/p>\n
Mr Mohammad said Queensland\u2019s top marginal stamp duty rate of 5.75% remains one of the highest in the country, with the state also having the widest stamp duty base of any state.<\/p>\n
\u201cThis year\u2019s stamp duty revenue is expected to be over $6bn, well in excess of the $4.6bn predicted in last year\u2019s budget,\u201d he said.<\/p>\n
Lack of housing plan<\/h2>\n
Ms Mercorella said while the Henry Tax Review, which was already delivered over a decade ago, has already identified stamp duty as a bad tax, there are still no plans in place for Queensland to introduce any reforms.<\/p>\n
Ironically, however, the state is planning to introduce a new land tax regime for property investors.<\/p>\n
\u201cWith over $7.6bn pocketed in property related taxes, making property the second biggest revenue source behind all mining royalties, it\u2019s disappointing that we\u2019re not seeing this being reinvested in projects and initiatives to alleviate the pressure on housing,\u201d she said.<\/p>\n
During the 2021-2022 Budget Update, the Queensland government announced changes that will see property owners pay land tax at a rate that considers all their landholdings across the country. This means that interstate properties will be aggregated to the Queensland landholding in determining the applicable land tax rate.<\/p>\n
\u201cSlapping yet another tax on property investors without any consultation with relevant property stakeholder groups is not the creative and positive action we so desperately need if we\u2019re going to tackle housing affordability and supply.\u201d<\/p>\n
Ms Mercorella said the state budget was not able to come up with other creative solutions to assist Queenslanders towards homeownership.<\/p>\n
\u201cDespite a construction sector in crisis, and the government itself conceding that builders and building supplies are rare as hens\u2019 teeth, the First Home Owners\u2019 Grant continues to overlook established housing, remaining restricted to new construction,\u201d Ms Mercorella said.<\/p>\n
\u201cWith rising construction costs and financial entry barriers making building or purchasing a brand-new home is simply unfeasible for many first home buyers, surely, it\u2019s time to extend this initiative to established housing options.\u201d<\/p>\n
\u2014<\/p>\n
Photo by @joshwithers on Unsplash<\/em><\/p>\n<\/p><\/div>\n