The Queensland Government's Building Boost Grant, which was
introduced in August 2011 to stimulate the Queensland housing
market and help with affordability, supply and employment, has been
extended by three months.
Here, partner Adam Carlton-Smith and senior associate Michelle
Hall outline the impact the Grant has had on Queensland's
struggling housing market.
Stimulating a depressed market
The Building Boost Grant was introduced last year to stimulate
the Queensland housing market. While there have been over 3700
applications under the program, which is less than anticipated, an
increase in the level of building activity in the later part of
2011 means that more interest is expected in the Grant over the
next few months.
After extensive lobbying by industry bodies including the Master
Builders Association, the Urban Development Institute of Australia
and the Real Estate Institute of Queensland, the Government will
now accept applications for the Grant for contracts entered into by
30 April 2012.
The aim of the extension is to provide stimulus for the
depressed construction industry. However, while the industry is
starting to show signs of recovery, other factors such as the
removal of the stamp duty concession rates for home buyers may
continue to weaken the impact of the Building Boost Grant.
On 31 July 2011, the home concession for transfer duty for
people who are not first home buyers was abolished. While the
transfer duty concession rates for first home buyers were increased
from 1 August 2011, there are concerns that the removal of the
concession for those who are not first home buyers will offset any
real benefits from the Building Boost Grant, as many home buyers
may be reluctant to buy or build a new home if they do not receive
a transfer duty concession. In any event, the Grant has been
welcomed as an incentive that will continue to assist with recovery
in the struggling construction industry.
The Council announced planning policies to encourage more inner suburban retirement village and aged care development.
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