All this EXTRA money coming into the state and what have the ALP achieved - NOTHING - all on top of rising house prices.

Government reaps $3.5b housing tax windfall

Queenslanders have been slugged $3.5 billion more than forecast in stamp duty but the government say that windfall is being reinvested to make housing more affordable.

The state reaped $3.5 billion more than it had budgeted solely from transfer duty receipts in the past three years, with the fees making up a third of the price of a new home, according to a Property Council of Australia report.

It found homebuyers would spend almost a decade paying down housing taxes for a 30-year mortgage worth $730,000 on a house and land package in Brisbane.

Housing Minister Meaghan Scanlon rebuffed the analysis, saying buyers did not pay income tax on house purchases and the state had the lowest property taxes on the east coast.

Median house prices in Brisbane in May were $845,000 while apartment prices were $565,000, marking a respective 42 per cent and 29 per cent rise in the past three years.

The increase in land prices meant government revenue rose 29 per cent during the period, the group's executive director for Queensland Jess Claire said.

Ms Scanlon said the extra tax collected was spent on infrastructure, including more affordable housing, and service delivery.

"We are spending way more than $3.5 billion on delivering infrastructure in the state schools, hospitals, homes and roads," she told reporters on Saturday.

But the housing lobby group called on the government to reduce the taxes to restore housing affordability.

"Taxing the property industry in a housing crisis is akin to taxing water in a drought," Ms Claire said.

It also urged the money to be spent infrastructure to support home building, saying the Brisbane apartment pipeline was set to dry up with no new projects expected after 2025.

"If we were to ever put a roof over every Queenslander's head, we need to review our prohibitive tax settings that not only drive up the cost of houses, they also drive out the critical investment," Ms Claire said.

The report made several recommendations including reviewing housing tax concessions, increasing the cut-off for first homebuyer concessions, which sits at $500,000 and quarantining tax windfalls into a transparent fund so voters can see how much money is raised and where it is spent.

The minister said the government was already investing billions of dollars in home building and incentives but refused to delve into any additional measures before June's state budget.

"The treasurer is absolutely focused on making sure we provide more relief to the households and we'll certainly look at ways that we can help families get into home ownership," she said.


Also

Property Council of Australia

Saturday 25 May 2024

MEDIA RELEASE

Government records massive windfall from Queensland’s growth

New research released by the Property Council of Australia has revealed the Queensland Government has benefitted from an extra $3.5 billion in transfer duty receipts alone over the past three years.

Property Council of Australia Queensland Division Executive Director Jess Caire said research showed the excessive taxes, fees and charges that make up one third of the price of a new home in Queensland was yielding significant revenue for the government.

“Our research shows that over the past three years the government has received an additional $3.5 billion more than they budgeted in transfer duty and land tax alone, representing a 29 per cent increase in receipts over the forecast,” she said.

“To put this figure into perspective, the seven new Satellite Hospitals in Tugun, Redlands, Eight Mile Plains, Bribie Island, Caboolture, Kallangur and Ripley currently being delivered by the government are budgeted to cost $377 million.

“At a time when Queenslanders are struggling to make ends meet and put a roof over their families head, the government is cashing in a massive windfall. It’s very clear that these taxes are in surplus and can be reduced to help bring an end to the housing crisis and restore affordability.”

Ms Caire said while taxes were critical to providing the projects and services Queensland needs, it was important to balance the need for more revenue with the need for more housing.

“It has never been harder or more expensive to deliver new homes in Queensland, which we are seeing in the record low number of homes being delivered across the state,” she said.

“Recently we released research that showed the Brisbane apartment pipeline was set to dry up with no new projects expected after next year. While taxes are important to fund the services needed across Queensland, no property being delivered means no money is being raised to fund these services.

“There needs to be a sensible balance that attracts investment in new homes and apartments, while funding the services needed across the state, and we are calling on the government to work with us to strike that balance.”

Ms Caire said the Property Council was also calling on the government to reinvest the money raised through property to deliver the infrastructure needed to support the growth.

“As Queensland grows there will undoubtedly be property related tax income raised from that growth. It’s important Queenslanders have visibility on how much is being raised and how it is being reinvested to support that growth.

“We are calling on the government to quarantine its extraordinary stamp duty and land tax windfalls into a transparent Queensland growth fund committed to delivering the projects, and attracting the investment, our growing state needs.