On Thursday at a Queensland media luncheon Queensland Treasurer Curtis Pitt announced the Government’s intentions to assist first home buyers in next week’s State budget.
Proposed Grant Increase
Mr Curtis said that at next week’s budget (to be handed down on Tuesday June 14) that the first home owners grant (called the Queensland Great Start Grant) will be increased from $15,000 to $20,000 from July 1 2016 to 30 June June 2017, when it will revert back to $15,000.
“This is a great time to build in Queensland with affordable housing on offer and the Palaszczuk government’s First Home Owners Grant will make it even easier to enter the property market,” Mr Curtis said.
Example of a current QLD FHOG property
What does this mean for first home buyers?
FHBA co-founder Taj Singh welcomed the news. “Any additional assistance for first home buyers is good news. The additional $5,000, if the legislation is passed, will go a long way in help first home buyers in Queensland enter the property market” he said.
Fellow FHBA co-founder Daniel Cohen said that while people regularly argue that developers often raise property prices to reflect Grant changes, he believed this hype is overdone. “There are many buyers in the property market, not just first home buyers. Other buyers aren’t getting this Government assistance and developers are concerned about total market demand, not just from first home buyers. So prices won’t necessarily increase. We hope first home buyers really will be $5,000 better off in Queensland during this period” he said.
Foreign investors set to be charged new surcharge tax
To help pay for the Grant increase the Queensland Government looks set to announce a 3% surcharge on transfer duty (aka stamp duty) on foreign property purchases. Mr Curtis said “this will ensure foreign purchasers of residential property, who benefit from government services and infrastructure, make a contribution to their delivery as local buyers do”.
Mr Singh welcomed the transfer duty surcharge idea for foreign investors. “We hope other States think about announcing a similar tax on foreign investors given the access they have to Australian tax-payer funded infrastructure usually associated with the areas the new properties are being built”.
The official policy announcements will outlined at next Tuesday’s budget (June 14). Stay tuned to www.fhba.com.au/blog for the details of the Government’s plan to help first home buyers.
- To view the current government first home buyer assistance available in Queensland please click here.
- To view current Grant eligible properties in Queensland please click here.
- Not a Queenslander? Find out what Government assistance you may be eligible for in your State here.
Disclaimer: FHBA recommends you should with a licensed professional about your circumstances to determine whether you meet the eligibility criteria for any Government assistance. FHBA does not recommend you make any financial, property or investment decision based solely on Government assistance.
