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Budget week housing measures a step forward (Qld)

Media release

Budget week housing measures a step forward (Qld)

Media release
“This week’s 2024-2025 Budget announcements from the Queensland Government and the Opposition contained some pragmatic measures to support getting more Queenslanders into housing, but more is needed to resolve the state-wide housing crisis,“ HIA Queensland Executive Director, Michael Roberts said.

“Measures such as waiving stamp duty on some new housing, new housing finance options and cost of living relief were positive announcements that can help young Queenslanders save for a home deposit faster.

“Stamp duty is one of most inefficient and ineffective taxes and HIA is pleased to see both parties committing to some stamp duty reform which we have been advocating for over a number of years.

“We’ve consistently called for cuts to taxes and charges on home building, which constitute more than a third of the cost of the average new house and land package in our state.

“We were delighted to receive confirmation of the LNP’s plan to reinstate the Queensland Productivity Commission, with a first order of business to report on productivity in the building industry.

“We also think that the LNP proposal to adopt a proven shared equity scheme in the vain of WA’s successful Keystart program would be more attractive than the complex federal model the current government is proposing to adopt.

“Disappointingly the government’s Budget, contained no measures to address the significant skills shortages in the construction industry, nor the substantial productivity issues being felt on new apartment construction that is stifling that key market segment and is only going to worsen over the next 12 months.

“The increases in the Foreign Investor Stamp duty charge to 8% and the foreign investor land tax surcharge from 2% to 3% announced in the Budget will likely lock out much needed investment in housing and further restrain the delivery of more rental options, particularly at a time when rental vacancies are at historic lows.

“Other key measures missing that we called on included substantial planning reform to streamline the approval of new housing of all types and reduction of the significant red tape hampering new home building and small business that is driving the cost of construction and pricing new home buyers out of the market.

“So, while there were some welcomed measures in the Budget much more ambitious policy reform is needed for Queensland to reach its share of 1.2 million new home target and the delivery of 50,000 new homes each year over the next five years.

“In the lead up to the Queensland election this year HIA is calling on an incoming Government to establish a policy agenda that supports a substantial boost to new housing, maintaining and growing a skilled workforce and removing the significant productivity issues crippling the industry,” Mr Roberts said.

For more information please contact:

Mike Roberts

Executive Director – Queensland

Paul Leven

Deputy Executive Director – Queensland
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