LNP pledges to axe stamp duty as Premier works to ‘end homelessness’

First-home buyers purchasing property worth more than $500,000 would be exempt from paying thousands of dollars in stamp duty under a new policy by the LNP.

First-home buyers purchasing property worth more than $500,000 would be exempt from paying thousands of dollars in stamp duty under a new policy by the LNP.

Detail about the policy, including what the new property value would rise to, was not revealed by Opposition Leader David Crisafulli, however, who insisted it would be announced and costed before the October election.

Premier Steven Miles on Monday afternoon also made a housing announcement, releasing the five pillars that would underpin the government’s new housing plan; building more homes, supporting renters, helping people into home ownership, deliver more social homes and working towards ending homelessness.

The two announcements came after The Courier-Mail challenged Mr Miles and Mr Crisafulli to front up to a one-on-one conversation to hear directly from readers about their cost of living struggles.

Queensland Premier Steven Miles speaks at a post cabinet press conference at 1 William St Brisbane. Picture: Glenn Campbell/NCA NewsWire

The challenge was issued as part of the In The Red series, which exposes mounting financial hardship across the state.

On a bizarre day of policy announcements, both the government and opposition on Monday revealed plans to alleviate the state’s housing crisis, but offered little detail about how.

The LNP revealed it would raise the first homebuyer stamp duty concession limit beyond $500,000 – without naming a new figure.

A first-home buyer is exempt from stamp duty if they purchase a home under $500,000, with the threshold unchanged since 2012 despite the average house price in Queensland soaring to $798,000 – which costs a first-home buyer about $21,760 in transfer duty.

Mr Crisafulli said the policy would help more people enter the property market, but was unable to say what the new property price threshold would be.

“Rest assured ahead of the next election we will be very, very clear about what that threshold will be and the direct cost as well,” he said.

“We’ve seen a huge escalation in prices and what that has done is effectively created a new tax by stealth.”

Leader of the Opposition David Crisafulli, hold a news conference outside Parliament House in Brisbane pic: Lyndon Mechielsen/Courier Mail

Mr Crisafulli, who has previously spoken of his plan to take Queensland from last place in home ownership to first, said the property price limit of $500,000 announced in 2012 made first home buyers “effectively exempt” from paying stamp duty 12 years ago.

“It’s been greedy to keep it at that level, it’s just a new tax and less and less people have been eligible and by virtue, more and more people have paid it,” he said.

“It limits your ability for a young person to be able to just claw that deposit that they need to get into the market.”

Real Estate Institute of Queensland CEO Antonia Mercorella backed the plan, but said a revised threshold was needed to give it “substance”.

LNP home ownership spokesman David Janetzki said a new stamp duty threshold would be announced following consultation with stakeholders.

He revealed he was “expecting the treasurer to announce something” similar, but denied Monday’s announcement was a political play designed to trump the government.

“I’m not going to rush it, I’m going to take my time and get it right,” he said.

While Brisbane’s median value is $783,000, home values in parts of regional Queensland remain near $500,000.

Mr Miles left the door open to raising the stamp duty concession threshold, noting the government would “continue to take advice” on how to alleviate housing pressures.

“We make decisions around things like stamp duty in our budget and that’s why that’s the appropriate time for that,” he said.

Mr Miles used a post-Cabinet press conference to announce the five pillars to underpin the state’s new landmark housing plan but did not elaborate on how they would be delivered.

“Today we’re outlining the themes of the plan, the things that we want to achieve and the individual initiatives,” he said.

“We want some more time to work on it but you should expect us to be outlining initiatives in the plan over the next couple of weeks.

“It’s the biggest plan of its kind that I’ve seen from any government anywhere in Australia, that’s why it’s taken some time.”

The Premier is expected to release more details when he addresses the Queensland Media Club on February 6.