[+] Queensland Budget: What the Property Sector Can Expect

With the Queensland Budget due to be tabled on Tuesday, many in the development sector are keen to learn what policy, planning and funding the Miles Government has in mind. Announcements from the state during the past few weeks have highlighted key policy decisions as Queensland copes with the housing crisis and other key issues, including infrastructure shortfalls and preparations for the 2032 Olympic Games. There is also conjecture that a deficit will been forecast for the coming financial year. As the wait for the details of the total package continues, The Urban Developer has compiled what we know so far that will potentially affect developers in the Sunshine State, and those looking to do business there, as well as sector leaders’ thoughts around what is needed. Housing Last week, the Queensland Government revealed it would invest $2.8 billion in housing options to help address the supply crisis. Domestic violence shelters are among those plans. Also included are a potential 600 modular homes to help get houses on the ground faster, and a target of 53,500 new social housing homes by 2046. “I know that to build the homes Queensland needs, we need to do things differently, which is why QBuild and businesses across the state will be enlisted to roll out more modular homes,” Queensland premier Steven Miles said. The Queensland Council of Social Services has estimated that around 150,000 people in Queensland cannot access affordable housing. It follows news this month that Brisbane is now the second most expensive capital city in Australia for housing behind Canberra with a median price of $937,479 in the River City. “This [Property Council of Australia] research shows that government taxes, fees and charges make up 32 per cent of the total cost of a new home and 33.3 per cent of a new apartment,” Property Council of Australia Queensland Division director Jess Caire said. “Alarmingly, this means Queenslanders are spending the first nine years of a 30-year mortgage for a new house and land package paying off taxes, fees and charges—plus interest. “For a $730,000 mortgage, that equates to a whopping $233,440 in taxes, fees and charges.” ▲ Queensland Premier Steven Miles: Housing, healthcare, skills training and infrastructure Budget announcement have already been made. Caire said that the housing crisis could not be meaningfully tackled unless the tax settings were re-examined. “We simply cannot see a world where the government can deliver ‘a home for every Queenslander’, when there hasn’t been a review of the prohibitive tax settings that add one third to the cost of a Queensland home,” Caire said. “The upcoming State Budget provides the perfect opportunity for political bravery by tackling the tax settings that have been overlooked throughout the entire housing affordability debate. “We encourage the Government to adopt a ‘do no harm’ approach to policy setting that doesn’t break the industry, or discourage institutional investors, who are taking on the true financial risk of solving our housing crisis.” Property Council Australia Retirement Living Council director Daniel Gannon said that more could be done with the planning system to help provide more housing. “What I’d really like to see is … retirement village developments to utilise these fast-tracked approval processes,” Gannon said. “They’re a great example of how we can deliver additional supply [and] make use of existing infrastructure. If they can help us get older people out of five-bedroom houses more suitable for families and into well-serviced apartments and villas, that would be great.” Gannon estimated that there were more than 280,000 people aged 75 years and older in Queensland living in spaces too large for them and who need to downsize. Premier Miles has encouraged retirement village developers and operators to make use of the $350-million Incentivising Infill Development Fund announced this year. Applications opened for the fund this week. It supports market-ready projects to increase housing density in urban areas. “This is about density done right and making sure we maximise opportunities on underutilised land with access to existing transport, infrastructure and jobs,” housing minister Meaghan Scanlon said. The Government’s fast-track approval process through the State Facilitated Development unit has already received 145 expressions of interest, which represents 30,000 potential new homes. It will give top priority to projects that focus on affordable housing for low to middle income earners. The Government has also tried to balance the needs of renters and cost-of-living concerns for manufactured home owners. Market reviews of site rent and limiting site rent increases to CPI or 3.5 per cent are listed as the first stage of reforms in the Manufactured Homes (Residential Parks) Amendment Bill 2024. Further reforms have been announced for within the next six months, including multiple options for rent payment and a 12-month period for park owners to make such options available. It is a niche sector but with some interest—there are 203 residential parks with 25,513 sites and 38,000 residents across Queensland and an estimated 55 new parks with 10,000 more manufactured homes planned for development in the next decade. Rent bidding and a cap on rent rises to once a year have also been announced. Health The Government has added $2.4 billion for the Gold Coast Health and Hospital Service and $1.3 billion will fund the Coomera Hospital, which will provide more than 400 beds for the northern Gold Coast community. Early works will continue this year—completion is scheduled for late 2027. The Coomera Hospital is part of the $14-billion Health Big Build, itself part of Queensland’s Big Build initiative . That initiative aims to deliver more than 3300 new hospital beds. “We know the Gold Coast is growing rapidly and that’s why we are increasing the Gold Coast Health and Hospital Service budget by almost $300 million,” Queensland Treasurer Cameron Dick said. Gold Coast Health transformation and digital director Sandip Kumar said the new hospital would help take the pressure off the existing health network. “It’s important to note the new Coomera Hospital will be a facility that will benefit the whole city, alleviating pressure across Gold Coast Health’s entire network, in particular Gold Coast University Hospital and Robina Hospital,” Kumar said. The Cairns and Hinterland Health and Hospital Service will also get $1.436 billion with an initial $60 million allocated to the Cairns Health and Innovation Centre to help with site acquisition, planning and design. “The centre will leverage our Asia-Pacific connections, lead better outcomes for locals and deliver cutting-edge research on the health challenges unique to the tropics,” Miles said. There will be $250 million included for the Cairns Hospital Expansion to deliver an additional 96 beds for the region; a new mental health unit ($70 million), a redeveloped emergency department ($26.4 million), the new Cow Bay Primary Health Centre ($14.8 million) and the Cairns Youth Alcohol and Other Drugs Residential Treatment Centre ($19.3 million). ▲ The State Budget will include funding to expand the capacity of the Cairns Hospital. Construction and workforce Miles this month announced that any future apprentices working on Queensland’s Big Build housing projects would get the cost of their tools covered under a cash-back program called Free Tools for First Years. It is part of the Homes for Queenslanders plan that will cost $4 million and provide up to $1000 cash back for up to 4000 apprentices in their first year. These include apprentices in the construction, plumbing and electrical trades. It is hoped to increase interest in the fields by reducing the financial burden in getting started in the career. “The price tag on tools can be a barrier for many Queenslanders wanting to take up a trade and the businesses who want to hire them,” Scanlon said. Queensland employment minister Lance McCallum said, “Our apprentices are critical to the success of Queensland’s construction industry—by providing up to $1000 for their tools, we’re ensuring they have what they need to excel from day one. “This is a crucial step in building a robust, skilled workforce.” The rebate will be backdated to January 1, 2024 but it remains to be seen if further measures are in the Budget to resolve the construction labour shortage issue. A new Queensland Skills Strategy has also been announced with a new Skills Assure Supplier framework being developed and a million subsidised training places to be delivered over the next five years. It will be developed alongside the new Queensland Training Priorities Plan that will be annually updated and is intended to help registered training organisations provide the necessary skills training to address the labour and skills shortage. There will also be a student survey to help inform what changes are necessary to the plan. Infrastructure Other announcements ahead of the Tuesday’s release include early works for the Linkfield Road Overpass upgrade in Brisbane’s north. Funding has been provided through a joint commitment for $176 million by the Federal and Queensland Governments. Upgrading the Linkfield Road Overpass will help road users in north Brisbane connect to the Bruce Highway—$10 million will be released by the state for the early works that include relocating 350m of gas mains. The recent Federal Budget allocation of more than $10 billion for the Bruce Highway has been backed up with the Queensland Government allocating $50.5 million to the project. ▲ The Federal and Queensland Governments have invested in the Bruce Highway upgrade. South-east Queensland councils will get a share of $100 million for critical infrastructure, future housing, disaster resilience and community projects in the second round of the South East Queensland Community Stimulus Program. It is open to all 12 councils in the region, particularly for trunk infrastructure required before developers can build housing on vacant land or farmland as regional populations grow. Up to 20 per cent of the funding through the program can be used for planning projects and up to 5 per cent can be used for capability development projects. Meanwhile, Property Council of Australia research has shown that the Queensland Government has raked in an extra $3.5 billion in transfer duty receipts during the past three years. The PCA wants that money reinvested in a growth fund to help provide housing. “We are calling on the Government to quarantine its extraordinary stamp duty and land tax windfalls into a transparent Queensland growth fund committed to delivering the projects, and attracting the investment our growing state needs,” Caire said. The funding from the Budget for several major projects, not least of which is the Sunshine Coast Rail project and the Cairns Marine Precinct , is unknown at this poiint. That is also the case for Queensland’s end of the national Inland Rail project. The Queensland Government has also remained quiet on planning and relevant legislation and tax measures. You are currently experiencing The Urban Developer Plus (TUD+), our premium membership for property professionals. 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[+] Queensland Budget: What the Property Sector Can Expect

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