Qld state budget ‘hollow’ on housing: REIQ

The Real Estate Institute of Queensland (REIQ) has taken aim at the 2023–24 Queensland state budget, suggesting that Queenslanders trying to get a foot on the property ladder or find sustainable shelter for their family “will find little hope”.

The 2023–24 Queensland state budget has allocated $1.1 billion in increased funding in order to drive social housing delivery and supply, $250 million for housing and homeless support services, and doubled the Housing Investment Fund to $2 billion to support the commencements of 5,600 social and affordable homes by 30 June 2027.

In addition, the state government will introduce built-to-rent tax concessions for eligible developments to provide “affordable dwellings at discounted rents”.

REIQ chief executive Antonia Mercorella said while there will be welcome reprieve in the form of short-term handouts, the budget has missed the opportunity to plan and reshape the state to prepare for future growth and opportunity.

“For the past week, Queenslanders have been told to keep an eye on the budget for the answers they seek about housing relief,” Ms Mercorella stated.

“With today’s budget, their escalating cost-of-living demands have been tempered with some much-needed support, but the elephant in the room remains around how Queensland will adequately boost its housing supply.”

In particular, the state budget had “missed a valuable opportunity to reform property tax”, according to Ms Mercorella.

“Taxes from property have doubled over the last decade, hitting property investors who provide the vast majority of housing for Queenslanders who rent their homes,” Ms Mercorella said.

“With the government expecting to raise $31 billion over the next four years from the property sector, it’s disappointing that there’s no relief in sight for property investors.”

She added that while the increased rental rebates for low-income families and individuals along with the concessions to alleviate cost-of-living pressures were welcome announcements, “social housing funding still remains dreadfully deficient with expenditure on social housing in this budget 75 per cent below historical averages”.

“Sadly, there are no incentives to meaningfully boost supply and increase the current rate of build, while we face a continued shortfall and a 50,000-wait list growing longer by the day — all at a time when government seems intent on reducing private housing supply,” Ms Mercorella said

Ms Mercorella also welcomed the formalisation of the build-to-rent incentives.

“The REIQ have been advocates for incentivising build-to-rent schemes in Queensland, as a way to complement the traditional private housing investor and to help ease the pressures of the rental crisis,” she said.

“It’s particularly pleasing to see the flexibility extended to ensure the developments are mixed-use, however, questions remain around the compliance requirements and the definition of ‘affordable housing.’”

[RELATED: Qld rental reforms could cause investors to ‘walk’: REIQ]

Adrian Suljanovic is a journalist at Broker Daily with more than two years experience reporting on all facets of the third party distribution channel.

Adrian has written for a range of business and finance titles including IFA, Investor Daily and Lawyer’s Weekly before joining the mortgages team in 2022.

He graduated from the University of Wollongong in 2021 gaining a Bachelor of Communication & Media with a major in Digital & Social Media.

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