Stamp Duty on Family Home Negatively Impacts Queensland Property
Thursday, 19 January 2012 09:43
Queensland building approvals fell 19.5% in October and 28% over the previous year.
The Queensland Government introduced a $10 000 grant for the purchase of newly constructed homes, investment properties and holiday homes.
The uptake of this grant has been dismal to say the least, and it is clear that the Government’s extra tax on the family home has had a much greater effect than any stimulus provided by the short-term measure which was originally due to cease for new contacts after the end of January 2012, and was recently extended to the end of April, apparently to prevent it ending in the middle of an election.
The Government has also been criticized from within the industry. Despite 6158 applications being made for the $10 000 grant, only 892 had been able to successfully get through the approval process by early December.
The Government had provided $140 million which equates to 14,000 $10,000 grants for new homes, investment properties or holiday homes.
To my mind it is further evidence that the Government has little understanding of the effects their actions have had on the Queensland property market and the severely negative impact that applying stamp duty to people buying their own home has had.
It is extraordinary that with all of the resources of the Queensland Treasury, the Government could not even estimate how many new home contracts would be signed over a four month period.
The Liberal National Party has committed to restoring the concession on the purchase of the family home.
I think this is a very important measure and it has always been part of our philosophy as a country that people purchasing their own home should be given some advantage in relation to the level of taxation to other property purchases.
There is no doubt it is in the country’s interest for people to become stakeholders by purchasing their own homes.