Posted: 2024-11-24 21:06:55

The former Labor government in Queensland quietly adopted an LNP policy before the state election to allow first-home buyers to rent out a room while claiming stamp duty discounts.

First-home buyers had previously been banned from taking up the discount if they rented out part of their new home within one year of moving in.

While in opposition, the LNP pledged to change the rules if it won government in a bid to help first-home buyers and make more rooms available for renters.

For sale sign outside an apartment building along a street in Brisbane on October 31, 2018.

First-home buyers who purchase a property at $700,000 or less pay no stamp duty. (ABC News: Liz Pickering)

However, it can be revealed the former Labor government beat them to it — quietly tweaking the rules in the months before the October 26 poll despite casting doubt over the idea.

The new rules ensure first-home buyers can get the stamp duty concession and rent out a part of their property, as long as they continue to live in the home.

The arrangements only apply to leases that begin between September 10 this year and June 30 next year.

The opposition treasurer speaking at a microphone during a press conference

David Janetzki has accused Labor of copying the LNP's homework. (Supplied: AAP)

Treasurer David Janetzki said the new LNP government would move to make the rule changes permanent.

"We will implement our promises to first-home buyers in full and allow recipients of stamp duty concessions to rent out their rooms," he said.

"Ultimately, it's pleasing that Labor saw fit to copy the LNP's homework in the dying stages of the last government.

"It's just a shame they didn't do it properly and scheduled it to expire after the election."

Labor had cast doubt over policy

The Labor opposition confirmed the former government made the changes not long before the election.

"Our advice was that this rule impacted two people over the past four years, so we made a minor change to remove the inconsistency," a spokesman said.

While in government, Labor suggested that removing the ban on renting a room would not assist many first-home buyers.

At a press conference on June 16, then-minister Bart Mellish indicated it was not "really a big issue out there".

"Government is always happy to look at tweaks and changes, and if there are certain policies we can make better, I am always happy to look at that," he said.

A man with short cropped brown hair wearing glasses.

Former Labor minister Bart Mellish cast doubt over the policy earlier this year. (ABC News: lucas Hill)

"But for the [LNP] opposition to focus on this and say that they have got a silver bullet to housing, saying they've got a silver bullet to housing supply, it's a bit facetious of them."

The new LNP government confirmed only two people in recent times had proactively advised the Queensland Revenue Office that they had rented out a room.

But they also pointed out that on average 21,000 first-home buyers every year had previously been barred from leasing out part of their property under the old rules.

The transfer duty concession ensures first-home buyers do not pay any stamp duty on properties valued at $700,000 or less.

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