Queenslanders slugged $3.5 billion more than forecast in stamp duty

Queenslanders have been slugged $3.5 billion more than forecast in stamp duty, but the government says 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 comprising a third of the price of a new home, according to a Property Council of Australia report.

The Property Council of Australia wants the $3.5 billion windfall to be used to support home building.Credit: Peter Rae

It found home buyers 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.

But 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 – up 42 per cent and 29 per cent respectively over the past three years.

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

Housing Minister Meaghan Scanlon says Queensland has the lowest property taxes on the east coast.Credit: Tony Moore

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 state schools, hospitals, homes and roads,” she told reporters.

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,” Claire said.

The group also urged the money be used 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, which not only drive up the cost of houses, they also drive out critical investment,” Claire said.

The report made several recommendations, including reviewing housing tax concessions, increasing the cut-off for first home buyer 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 households, and we’ll certainly look at ways that we can help families get into home ownership,” she said.

AAP