PCA commends Introduction Of New Housing Grant

Changed from the First Home Owners Grant, the FHOCG is designed to stimulate the real estate sector if people buy newly-constructed or off the plan properties.

Queensland executive director of the Property Council of Australia Kathy MacDermott says that this grant will have a wide reaching effect and benefit the state.

"The FHOCG will provide a welcome shot in the arm for our construction and residential sectors as they continue to face dreadfully tough market conditions," she said.

The Queensland treasurer Tim Nicholls said that this new grant, combined with the newly re-established principal place of residence transfer duty concession, ensures that the housing sector in Queensland can get back on track.

But Kathy Mac Dermott says that to ensure long-term improvement, there needs to be some long term planning.

"What we need is broader, strategic reform for the long-term; best delivered through a holistic tax review and modernisation program, with a particular focus on stamp duty and harmonisation of our landholder duty model, to restore Queensland’s competitiveness and low-tax reputation," she says.

The Housing Industry Association's Warwick Temby said "an extra $8,000 (compared to the current $7,000 grant) will provide a real incentive for first home buyers to consider
building their first home".