Building and Construction Alert: Queensland Building Boost Grant extended 17 Jan 2012

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.

For more information about the Building Boost Grant, including eligibility requirements, please contact HopgoodGanim's Building and Construction specialists.