New Housing Incentives for 2025: A Comprehensive Overview

The Queensland and federal governments are set to introduce a series of fresh and enhanced incentives in 2025. These initiatives aim to ease housing affordability challenges, encourage development, and support first-time homebuyers. Below is a reimagined guide to the latest grants and funding schemes.

1. $2 Billion Residential Activation Fund

Objective: Accelerate the development of essential infrastructure to boost housing supply.
Who Can Apply: Local councils and property developers.
Total Funding: $2 billion, including $1 billion allocated specifically for regional Queensland.
Application Timeline: Opens in June 2025 with funds disbursed starting in July.

2. First Home Owner Grant

Grant Value: Up to $30,000 available for contracts signed prior to 30 June 2025, reducing to $15,000 thereafter.
Eligibility: First-time buyers investing in or constructing a new home priced under $750,000.
Note: The grant does not apply to existing homes.

3. First Home (New Home) Transfer Duty Concession

Start Date: 1 May 2025
Benefit: Offers a full exemption on transfer (stamp) duty for new homes or vacant land developments.
Purpose: Reduce initial financial burdens on first-home buyers.

4. Queensland Housing Investment Growth Initiative (QHIGI)

Components: Includes initiatives like the Housing Investment Fund, QuickStarts Qld, and Help to Home.
Who Can Participate: Individuals, developers, not-for-profit organizations, and community housing providers.
Goal: Expand affordable housing options and foster valuable community partnerships.

5. Federal Help to Buy Scheme

Structure: Offers a shared equity model that lets buyers purchase a home with as little as a 2% deposit.
Funding: A $6.3 billion expansion designed to assist 40,000 buyers over a four-year period.
Criteria: Subject to income thresholds and property price limits.

6. Build-to-Rent Tax Incentives

Developer Benefits:
- Reduction in the MIT tax rate from 30% to 15%.
- An increase in capital works depreciation from 2.5% to 4%.
Effective Date: From 1 January 2025 for qualifying projects.