This article is from the Australian Property Journal archive
THE Bligh Government has cut stamp duty and will scrap mortgage duty for first home buyers purchasing a home for $500,000 or less.
The government said the savings will add to almost $10,000 for anyone purchasing their first house. The budget increases the first home buyer exemption from $320,000 to $350,000 from July 01 2008 and – from September 01 2008 – to $500,000.
These changes will provide savings of up to $9,500 to home buyers purchasing their first home valued up to $500,000 – stamp duty for all first homes under $500,000 will be nil from September 01 2008.
In addition, the full abolition of Mortgage Duty will be brought forward six months to July 01 2008. Savings are in the order of $300 on a $500,000 house.
State Treasurer Andrew Fraser said the tax changes will give a generation of Queenslanders the opportunity to break into the housing market at a time when the great Australian dream appears to be moving beyond their reach.
“Through these sweeping changes, any Queenslander seeking to break into housing ownership by purchasing a home under $500,000 will be given a break by not having to pay one red cent in stamp duty on the purchase.
“They will not pay one red cent in duty on their mortgage – because we are abolishing it in full on day one of the financial year,” he continued.
“Whether you are looking to take out a mortgage and buy a house in the growth corridors of Ipswich or Logan, the expanding suburbs of the Gold Coast, in outer Cairns, in suburban Brisbane or in the boom story that is Mackay, you will now be able to do so under the lowest tax regime in the country,” Fraser said.
Other changes include home owner concession, Queensland currently provides a principal place of residence concession by applying a 1% rate to the first $320,000 of the value of the home. This budget increases the concession to the first $350,000 of the value of the home from July 01 2008. The increased concession will ensure that less duty is payable in Queensland than in any other state on the purchase of a home valued at up to approximately $1.5 million.
And finally, for houses valued at more than $1 million the First Home Owners Grant will be abolished and in addition duty rates will be reformed. Ultimately, when each of these duty changes are combined, it will mean a decrease in duty on all homes valued between $320,000 and $1 million and an increase above that level.
Queensland currently enjoys the highest threshold in the country and, at 1.5%, the top marginal rate is also lowest in the nation.
The amount of tax at the Land Tax threshold will be reduced from $1,200 to $500 for residents and from $2,250 to $1,450 for companies, to ensure the majority of land tax payers – residents as well as companies, trusts and absentees – will benefit from the changes.
The Government also pledged $125 million from the Queensland Future Growth Fund to assist with housing affordability through the planned release for social housing as well as $9.5 million for the Urban Land Development Authority.
Australian Property Journal
