Brisbane finance brokerage Borro is urging the Queensland government to increase the stamp duty threshold for first-home buyers.
Cara Giovinazzo (pictured above), Borro’s managing director, said an urgent review was needed to accommodate the booming property prices, especially in the south-east of the state.
First-time buyers in Queensland currently have stamp duty waived for properties up to $500,000. However, with the median house price in Brisbane now exceeding $800,000, Giovinazzo argued that the threshold needs a substantial increase.
“I have been in the lending sector almost 15 years and over that time there has never been an increase in the stamp duty threshold for first-time buyers, who are now being priced out of the market because they don’t even qualify for the concession,” she said.
ABS figures showed that stamp duty now constitutes 25% of Queensland's tax base, up from 20% a decade ago. Property taxes, including stamp duty and land tax, have risen by 133% over the past 10 years, generating an additional $4.2 billion annually.
“The state government has been having a feast from stamp duty revenue with recent reports the tax has raised $3.5bn more than forecast in the last state budget,” Giovinazzo said.
Giovinazzo supports the Real Estate Institute of Queensland (REIQ) in advocating for the stamp duty threshold for first-home buyers to be lifted to at least $750,000.
“Queensland currently has the lowest proportion of first home buyers of all mainland states,” she said. “Stamp duty is an inefficient and aggressive tax which can add years to the time people looking to enter the property market can take to raise a deposit for their first home.”
Giovinazzo criticised the government for being an obstacle to homeownership during a housing crisis.
“It’s a financial curse which keeps those wanting to own their home in the rental market and deters empty nesters who may be considering downsizing from selling due to the cost,” she said. “At a time when the nation is experiencing a serious housing crisis, it’s a disgrace when a government is a barrier to homeownership.”
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