Why Qld should look to the ACT for inspo when it comes to stamp duty

REIQ Chair for Cairns Tom Quaid says Queensland should look to the ACT for inspiration when it comes to stamp duty and housing. Here’s why!

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Stamp Duty (or transfer duty) is a tax paid on the transfer of an asset from one party to another, which scales (up) depending on the value of the property.

Most states will provide a level of concession for a first home buyer and a smaller concession for the purchase of a home, with investors paying the full amount in almost all cases.

In Queensland, purchasing a home (that isn’t your first home) at the Cairns median of circa-$700,000 will cost you just over $17,000. For an investor, that’s $24,500.

In a move that will inspire plenty of envy among its neighbours, the ACT has broken the trend for rising property taxes and made the move to wipe out stamp duty entirely for a range of property purchasers from July 1 this year.

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First home buyers were already entitled to generous concessions, however this latest push will eliminate it entirely at all price ranges – helping overcome one of the biggest hurdles to home ownership after saving for a deposit (itself supported by the federal deposit guarantee scheme).

In welcome news for Canberrans that may have previously owned a home but have been out of the market for at least five years, a stamp duty exemption will also apply.

While there have been various supporting concessions and grants for first home buyers over the years, the fact is that once you are out of the market, it can be difficult to get back in, particularly for those that have missed out on post-Covid growth run.

Acknowledging that challenge and providing a leg-up for this segment of the market is a big move, and one which should provide genuine assistance.

Providing further evidence of practical thought being applied to the property market, pensioners have also made the cut for stamp duty exemption.

Older property owners will often remain in a home that might no longer be suitable due to the costs of downsizing.

By eliminating one of those biggest costs, it’s one less hurdle and a huge encouragement to “right-size”, freeing up much needed supply, often in sought-after areas closer to main hubs.

With stamp duty providing an outsized proportion of revenue for many state governments, it can be a difficult dependency to break – accounting for almost a quarter of Queensland’s budget.

Given the relatively small number of targeted buyers, and a focus on making it count where it can though, this might be one of those times we could look south for some inspiration.