Agents in Queensland are set to gain from the reinstatement of the Principal Place of Residence (PPR) stamp duty concession, along with the removal of sustainability declarations, according to the Real Estate Institute of Queensland (REIQ).
“The PPR stamp duty concession was removed at a very inopportune time last year when the Queensland economy was still struggling to recover from our summer of natural disasters,” REIQ CEO Anton Kardash said.
“Its reinstatement for homes bought as a principal place of residence from 1 July will save buyers thousands but will also re-establish Queensland as one of Australia’s lowest jurisdictions for stamp duty on residential property.
“If you add this to our affordable property prices, compared to other capital cities, then we are likely to start seeing a return of interstate migrants which will be of benefit to our broader economy.”
The changes, which were passed by the Queensland parliament earlier this week, will see home buyers save up to $7,000 in stamp duty from 1 July and will also result in sustainability declarations being removed from the selling process within coming weeks.
The REIQ said it has been vocal in its opposition to the declarations since their introduction in 2010 given the complex nature of the original declaration resulted in it being simplified to such an extent that it became almost meaningless.
“Research conducted by the Queensland University of Technology (QUT) at the end of 2010 also recorded widespread disengagement with the sustainability declaration process from sellers, and even more so, from buyers,” Mr Kardash said.
“Despite this, sellers were legislatively required to complete these forms to the best of their knowledge prior to the property going to the market.”
“The removal of the declarations is the first step towards reducing red tape in the real estate transaction process.”
The REIQ said sustainability declarations will remain in force until the Bill has received final assent, which is expected to be in the next few weeks.