NEW YEAR BONUS FOR QLD FIRST-HOME BUYERS

The New Year will usher in a welcome bonus for Queenslanders buying or building their first home with stamp duty slashed to zero on some properties, Premier Peter Beattie said today.


Mr Beattie said from 1 January thousands of first-home buyers will reap the benefits of the State Government’s Budget and election commitments to make home ownership more affordable.


“From the start of 2007, first-home buyers who purchase an existing home valued up to $320,000 or vacant land valued up to $150,000 to build their first home will pay no stamp duty – not one cent,” Mr Beattie said.


“Our commitment to increase the stamp duty free threshold from $250,000 to $320,000 on existing homes recognises the rise in house prices and will give first-home buyers a leg up the property ladder.”

From 1 January first-home buyers will also pay less stamp duty on:

• homes valued over $320,000 but less than $460,000 or
• a vacant block of land valued over $150,000 but less than $300,000

About 12,000 first-home owners are expected to benefit from the stamp duty cuts. Mr Beattie said first-home buyers would save up to almost $4000 on a vacant block of land and up to $1400 on their first home.


“Under the new concessions, a person buying a vacant block of land for $160,000 to build their first home will pay just $550 in duty, a saving of $3750,” he said.


“A person who buys an existing home as their first home for $350,000 will pay transfer duty of $1,650, a reduction of $1,100.”


The changes apply to all contracts entered into on or after 1 January 2007.

Mr Beattie said Queensland had the most generous concessions for home buyers in Australia. “A person buying a home (other than their first home) pays substantially less stamp duty than buyers in other states,” Mr Beattie said.


“In 2008, we will start to abolish mortgage duty, and this will provide further relief for home buyers.” Mr Beattie said the stamp duty concessions were part of a wider Government strategy to tackle housing affordability. “We are developing a Queensland Housing Affordability Strategy in partnership with the Property Council, the Urban Development Institute of Australia, industry and local government,” Mr Beattie said.


“The strategy will focus on freeing up land for development, making sure local government infrastructure charges in new estates are fair, and improving processes for development approvals.


“The January 1 changes, and our commitment to housing affordability, are good news for Queenslanders and good news for our economy.”


Media contact: Premier’s office 0418 795 940
31 December 2006