Industry applauds move but calls for broader reform to truly fix housing supply.

In a bold move welcomed across the property and construction sector, the Queensland Government has abolished stamp duty for first home buyers.

This policy change, effective from 1 May 2025, is a significant step that many have labelled as a win for home buyers and a win for industry.

But while this decision is seen as a victory, industry voices are urging the government to look further than the first rung of the property ladder.

What’s Changing, and How Much Can First Home Buyers Save?

Stamp duty has long been considered one of the most inefficient and regressive taxes in the property market. For years, it’s added tens of thousands of dollars to the upfront cost of a home, putting home ownership further out of reach for many.

The reform for first home buyers will see some significant savings. For builders, this could be the difference between a project stalling or proceeding, especially for those catering to the entry-level market.

Why Builders Should Care

While the reform is aimed at buyers, the ripple effect for builders is massive.

• Improved buyer confidence: With reduced upfront costs, many first home buyers may now consider building rather than buying established properties.
  
• Increased demand for smaller, entry-level homes: Builders with appropriate or adaptable product ranges, or those able to provide suitable house and land in the first home range, may stand to benefit most.
  
• More demand on trades and supply: While this may be a goodboost to unlock some positive first home buyer consumer sentiment, it is critical that in light of these changes and other large construction projects, trade and supply chains may be strained. As we’ve spoken about at The Good Builder, we would be wary to secure your trades and supply for the coming months and years.
  

And with 1.2 million homes required nationally over the next five years, anything that encourages market movement is a welcome shift.

But It’s Not a Silver Bullet

While the industry has celebrated the announcement, there’s a firm consensus that more reform is urgently needed.

“However, there is more work to be done – and the tax system offers further opportunities to help more Queenslanders get a leg up on the property ladder,” Master Builders CEO Paul Bidwell said

Stamp duty discourages downsizing, land transfers, and investment, all critical levers for unlocking supply.

Bidwell continued:

“The $750,000 cap on house and land value for the grant should be scrapped. This is less than the median price of $764,900 price of a new home in Queensland – and only 81 per cent of the current median price of a new home in Brisbane: $1.36 million.”

What’s Next?

This reform gives builders an opportunity, but it’s also a reminder that we need broader structural change.

If you’re a builder:

• Start talking to your builder, broker and developer network about how this will affect demand in your local area.
  
• Review your plans and product offering especially those close for the First Home market.
  
• Prepare your marketing to capture first home buyers, their pain point just got removed.
  
• Join the call for deeper reform, because if we want a healthy industry, we can’t stop here.
  

We’d Love To Hear From Our Community…

The Good Builder community is invited to share their perspectives on this development. Is this the change we need or do we need more? Engage with us on LinkedIn to join the conversation.