REIQ requires stamp obligation concession

The Actual Property Institute of Queensland (REIQ) is looking on the state authorities to boost the stamp obligation concession threshold from $500,000 to $750,000 because of hovering property costs.

REIQ CEO Antonia Mercorella stated the present threshold, set in 2008, not aligns with the truth of the market, with the median residence worth in Brisbane reaching $783,000 in December, a ten.45% enhance over the 12 months, PropTrack’s newest Dwelling Worth Index confirmed.

“The typical value of an entry stage property has quickly outpaced the present threshold of the first-home purchaser’s concession being $500,000 and has not been reviewed since 2008,” Mercorella stated.

PropTrack knowledge confirmed that median residence values throughout Queensland rose 8.47% to $634,000 in the identical interval.

The present concession exempts first-home consumers from stamp obligation on properties below $500,000, with concessional charges making use of to these between $500,000 and $550,000, saving consumers as much as $15,925, realestate.com.au reported.

Angus Moore, PropTrack’s senior economist, famous that solely a couple of third of houses offered in Queensland in 2023 would qualify for the complete low cost, and greater than 40% would qualify for a partial concession.

In Brisbane’s more difficult market, fewer than 25% of houses offered final 12 months would safe the complete low cost, with slightly below a 3rd qualifying for a partial concession.

“Stamp obligation is especially acute for first-home consumers as a result of most first-home consumers are deposit-constrained,” Moore stated. “Saving for a deposit is tough and stamp obligation provides tens of hundreds of {dollars} on high of the quantity of deposit that you must save.” 

REIQ emphasised the pressing want for a overview, citing the decade-low numbers of first-home consumers accessing the concession.

“Whereas we’re but to see any urge for food from the state authorities to sort out the inefficient and regressive tax that’s stamp obligation, a smart interim measure could be to elevate the concessional threshold for first-home consumers to a determine of no less than $750,000,” Mercorella stated. 

Moore warned that stamp obligation acts as a barrier to property markets, negatively impacting affordability and discouraging mobility. He advocated for broader reform, much like initiatives in different states, such because the ACT’s phased-out strategy to stamp obligation over a 20-year interval to boost residence shopping for fairness.

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