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The Queensland state budget has been released this week, pledging billions of dollars to social housing, but falling short of addressing a number of key housing concerns of the state’s real estate body.
Real Estate Institute of Queensland (REIQ) CEO Antonia Mercorella has expressed disappointment in the lack of attention the 2021–22 budget pays to first home buyers and the issue of stamp duty.
She has reiterated that a state-based $15,000 First Home Owners’ Grant “should be extended to beyond those who are purchasing or building a new home”.
“With the costs of new construction skyrocketing, giving first home buyers support to purchase existing housing (to the same current value of less than $750,000) will expose them to more affordable pricing options,” she explained, before adding that the grant in its current form “significantly limits buying options and choice”.
The REIQ revealed she had also hoped that the issue of reforming the state’s stamp duty would arise in the latest budget — following on from conversations already being held across New South Wales, Victoria and Western Australia.
The REIQ is advocating for a 10-year phase-out of this “economically inefficient and volatile tax”.
Ms Mercorella said: “With an estimated 340,000 property transactions foregone due to stamp duty each year, we believe its abolition would maximise housing access and choice for buyers.
“The abolition of stamp duty on business sales would help to remove financial barriers and encourage more sales.”
Social housing given a boost
Despite the disappointments, the CEO acknowledged that the state body is “broadly supportive” of the budget’s direction as the state emerges from COVID-19.
“The 2021–22 state budget appears to be putting Queensland in a strong economic position compared to other states,” she expressed.
She’s also welcomed the announcement of a $1 billion Housing Investment Fund to drive new housing supply and $1.8 billion over four years which is set to increase social housing supply and upgrade the state’s current social housing portfolio.
“We welcome what is believed to the be the largest investment in social housing since World War II,” Ms Mercorella said.
“The REIQ has been a strong advocate of more government investment in safe, secure and affordable housing, which is the foundation of building resilient and connected communities.”
Infrastructure gets an A
The CEO, on behalf of the REIQ, has also praised new infrastructure spending — $14.7 billion in 2021–22, with 61.2 per cent of funds to be spent outside of Greater Brisbane.
Ms Mercorella considered that the state’s growing population means “it’s great to see such a large amount being spent on roads, public facilities, local government projects including sewerage and water plus disaster resilience”.
“We’re delighted to see Queensland’s regions receive the lion’s share of this spending, particularly in light of the influx of new residents they are experiencing,” she said.
Small business support
Finally, Ms Mercorella welcomed the state budget’s support measures designed to assist small businesses.
Acknowledging that many of the real estate agencies operating across Queensland are small businesses, “we welcome such announcements”.
These include a $100 million Business Investment Fund and $30 million in grants and support for small business to increase skills and capability.
ABOUT THE AUTHOR
Grace Ormsby
Grace is a journalist across Momentum property and investment brands. Grace joined Momentum Media in 2018, bringing with her a Bachelor of Laws and a Bachelor of Communication (Journalism) from the University of Newcastle. She’s passionate about delivering easy to digest information and content relevant to her key audiences and stakeholders.
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