Industry slams new stamp duty legislation

Industry slams new stamp duty legislation

15 June 2011 by Staff Reporter 0 comments

Matthew Sullivan

The Real Estate Institute of Queensland (REIQ) has slammed the Queensland state government’s decision to remove the stamp duty home concession.

From 1 August, the government will remove the concession which non-first home buyers receive when buying a new or established home as their principal place of residence.

In addition, the government said it would also introduce a $10,000 grant to people that are building or buying a new-build home or unit priced up to $600,000.

REIQ chairman Pamela Bennett said while the incentive to increase housing supply and create jobs in the construction sector is a positive for the economy, the removal of the stamp duty concession for non-first home buyers will wreak havoc on the Queensland property market.

“The government is obviously trying to fill the financial void that has been left by the weak property market, and the subsequent lower stamp duty receipts given the marked reduction in property sales over the past 18 months,” Ms Bennett said.

“A better way to stimulate the economy would have been to provide financial incentives for all buyers of all types of properties which in turn would have increased activity and therefore helped the government’s bottom-line.”

According to the REIQ under the new legislation, home buyers purchasing a median-priced house in Brisbane will now be hit with more than $15,000 in stamp duty – an increase of more than $7,000.

 

Matthew Sullivan

The Real Estate Institute of Queensland (REIQ) has slammed the Queensland state government’s decision to remove the stamp duty home concession.

From 1 August, the government will remove the concession which non-first home buyers receive when buying a new or established home as their principal place of residence.

In addition, the government said it would also introduce a $10,000 grant to people that are building or buying a new-build home or unit priced up to $600,000.

REIQ chairman Pamela Bennett said while the incentive to increase housing supply and create jobs in the construction sector is a positive for the economy, the removal of the stamp duty concession for non-first home buyers will wreak havoc on the Queensland property market.

“The government is obviously trying to fill the financial void that has been left by the weak property market, and the subsequent lower stamp duty receipts given the marked reduction in property sales over the past 18 months,” Ms Bennett said.

“A better way to stimulate the economy would have been to provide financial incentives for all buyers of all types of properties which in turn would have increased activity and therefore helped the government’s bottom-line.”

According to the REIQ under the new legislation, home buyers purchasing a median-priced house in Brisbane will now be hit with more than $15,000 in stamp duty – an increase of more than $7,000.

 

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