Queensland state budget: First-home buyers among the winners

First-home buyers are among the big winners in the Queensland state budget, after it was announced the $20,000 First Home Owner’s Grant would be extended.

The grant, which was set to expire at the end of this month, will be extended for another six months until December 31. 

It offers first-home buyers $20,000 to purchase new houses, units or townhouses valued at less than $750,000.

Treasurer Curtis Pitt said 4900 applications worth $98 million had been approved so far, with more to be approved as house purchases by applicants proceed, demonstrating the success of the scheme.

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He said extending the grant would further drive construction and economic activity.

“The Palaszczuk Government recognises how difficult it is for first-home buyers to get into the housing market,” he said.

“This is one of the most effective ways of helping families to get a start with a new home while simultaneously creating construction jobs and spurring on the economy.

“If all the approved grants leverage new dwellings of $750,000 they would represent almost $3.7 billion worth of activity.

“Queensland’s established housing market is also looking healthy, which is encouraging for homeowners across the state.

“However, we recognise that there are regions which need our assistance … This grant can have an even greater effect in regional Queensland, where $20,000 may be more than half of the 10 per cent deposit for a median priced house.”

Paul Bidwell, deputy executive director of Master Builders Queensland, welcomed the grant extension but noted that less than 10 per cent of first-home buyers purchase new properties.

Other highlights:

• The trend towards inner-city apartment living in Brisbane in recent years will see the state government open its first new inner city school in Brisbane since 1963; 

• For foreign landowners, a 1.5 per cent land tax surcharge on absentee land taxpayers will be introduced, but only if the value of their taxable land is $350,000 or higher. It’s a measure that’s expected to increase government revenue by $20 million a year from 2017-18.

• Unlike NSW and Victoria, the Queensland government has not made any changes to the Foreign Acquirers Transfer Duty Surcharge.