We know the State Government has severely increased Stamp Duty because it’s strapped for cash. But was the method to obtain the extra money carefully considered or was it a kneejerk to get easy money in a hurry?
Initially, there is good news for first home owners who will receive $7000, and $10,000 to anyone who buys or builds a new home. The $10,000 bonus shuts down at the end of January. Sounds okay? Well let’s see. The feel good effect will be short lived by these home owners as their bonuses will be wiped out to pay for the extra Stamp Duty when they purchase any other properties in the future.
First home buyers represent about 15 per cent of the property market so, thanks to our government, from this August, the lion’s share of Queenslanders will have to pay a spiralled Stamp Duty charge when buying property. This is added to the inevitable surge in local rates, utilities and interest rates.
The ability to own one’s home is a fundamental right and so too is the opportunity to buy and sell. These attributes help to underpin the very fabric of a positive and prosperous society.
In 1980 the price for an average home was around 4.7 times the annual salary. In 2010 this price increased to around 10 times the annual salary.
Whilst Queenslanders will continue to buy and sell property, everything has a limit. Buyers will have to factor in these extra thousands of dollars. They either have to find the money themselves and pay more or attempt to deduct it from the price of the property, so the sellers receive less. This is definitely not a ‘win-win’ for all.
It’s an indictment on our State Government that it is so dangerously short sighted and lacking in fiscal judgment and the milk of human kindness that it did not tap into more pipelines in order to improve the State’s coffers. This would have diluted this savage spike in Stamp Duty and prevented the increased cost to home ownership.
It’s all about the next election and what looks best for the government. So, Opposition what’s your stamp on this?
Anne Lindsay,
Stanthorpe
