Queensland State Budget 2025-26 - A continued focus on housing supply and cost-of-living pressures
Queensland State Budget 2025-26 - A continued focus on housing supply and cost-of-living pressures
Queensland Treasurer, David Janetzki, has handed down the 2025-26 Queensland State Budget, which forecasts a net operating deficit of $8.58 billion. Despite the deficit, continued focus was given to the Government’s priority areas of affordable housing, targeted easing of cost-of-living measures and funding support for the Olympic and Paralympic infrastructure.
Support for first home buyers
The Queensland Government has announced further measures to assist prospective first home buyers in the housing market. Notably, two new initiatives were announced:
1. First Home Buyers Grant: The First Home Buyers Grant will be temporarily increased from $15,000 to $30,000 for contracts entered into up until 30 June 2026.
2. Boost to Buy program: Described as a nation-leading home ownership scheme, the Queensland Government is investing $165 million into the ‘Boost to Buy’ program for up to 1,000 homes valued up to $1,000,000 over the next two years. Under this initiative:
- Eligible first home purchasers will be able to purchase their first home with deposits as low as 2 per cent
- Singles earning up to $150,000 and households with two adults earning up to $225,000 will be eligible under the program
- The Queensland Government will fund a portion of the cost of these new or existing homes by acquiring a 30 per cent equity in new homes and 25 per cent in existing homes.
The Treasurer also confirmed that no transfer duty would be imposed on first home buyers purchasing a new home. However, this measure was previously enacted from 1 May 2025 onwards.
BDO comment
BDO welcomes any further initiatives that assist first home buyers in this competitive housing market. The initiatives announced in the 2025–26 Budget represent a valuable step forward, particularly for those purchasing newly constructed homes. However, we believe there is further opportunity to enhance accessibility for first home buyers seeking to purchase existing homes, especially those valued above $800,000, where current support measures may not go far enough.
Similarly, while the Boost to Buy Program is a promising initiative that enables eligible participants to acquire existing homes, its impact may be limited by the cap of 1,000 homes and the $1,000,000 value threshold.
Foreign surcharge exemption streamlining
The Government has announced its commitment to streamlining and simplifying the ex-gratia relief process for additional foreign acquirer duty and land tax foreign surcharges. Currently, ex-gratia relief is granted via application to the Queensland Revenue Office in accordance with published guidelines.
The purpose of the administrative changes will be to provide timely certainty to eligible applicants including property developers who contribute to residential housing supply. To assist this process, the Government has committed to work with industry via the re-established Property Consultative Committee. This group will work with Treasury to assess current impacts and identify potential changes to the ex-gratia criteria to support new housing development. Recommendations from the Property Consultative Committee are expected to be discussed in the mid-year budget review at the end of 2025.
BDO comment
BDO welcomes the Government’s commitment to streamline the foreign ex-gratia relief application process. The announcement today reinforces the Treasurer's message that Queensland is open for business and indicates a willingness to work to create an efficient investment-friendly environment, while also addressing Queensland’s housing challenges. We support further discussion and consultation around the proposed administrative reforms.
Extension of the apprentice and trainee rebate
The 50 per cent payroll tax rebate on wages paid to apprentices and trainees will be extended up to 30 June 2026. Apprentice and trainee wages are currently exempt from payroll tax in Queensland, and the rebate extension offers an additional measure of support for businesses employing apprentices and trainees, provided the business pays annual Australian taxable wages of $1.3 million and above.
BDO comment
BDO welcomes the announcement of the extension to the rebate, which encourages job growth and investment in the apprentice and trainee workforce.
Windfall taxes
The Queensland Government has introduced the Revenue and Other Legislation Amendment Bill 2025 which includes amendments to the Duties Act 2001 (Qld) and Land Tax Act 2010 (Qld).
The amendments are aimed at preventing refunds of additional foreign acquirer duty and land tax foreign surcharge in the event that the pre-8 April 2024 laws are found to be constitutionally invalid. Windfall taxes will be imposed equal to the amount of the taxpayer’s foreign surcharge liability.
BDO comment
BDO notes that the application of these changes is subject to the High Court determining the constitutional validity of the existing additional foreign acquirer duty and land tax foreign surcharge laws.
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