Housing affordability sidelined in Budget

While the REIQ welcomes the reduction, and eventual abolition, of mortgage duty and the lifting of the tax-free threshold on land tax from $500,000 to $600,000, it is disappointing more initiatives were not announced as part of the Budget package.

"Queensland homebuyers were looking for leadership from the State Government on housing affordability after the issue was ignored by the Federal Government in its Budget in May," REIQ managing director Dan Molloy said.

"The government said on Tuesday it was further investigating the barriers to affordability; the REIQ – together with Queensland homebuyers – looks forward to future announcements, and consultation, on the matter."

Mr Molloy said the REIQ had hoped to see the government provide further stamp duty relief, especially for first home buyers, in the Budget.

"The land tax relief is welcomed as this regressive tax can be a disincentive to invest in property, putting further pressure on supply and ultimately disadvantaging people in the rental market," he said.

"The REIQ recommends long-term strategies – including addressing the high costs involved with supplying residential land to the market, and the establishment of a planning authority to streamline the land release process – need to be put in place if this State’s declining housing affordability is to be addressed."

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Marc Pallisco

A former property analyst and print journalist, Marc is the publisher of realestatesource.com.au.