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The Real Estate Institute of Queensland backed legislative change which is set to ease housing affordability and boost rental supply.
Queensland home owners may soon be allowed to rent out spare rooms without losing grants or concessions, due to a legislative change initiated by the Real Estate Institute of Queensland (REIQ).
The proposal will be discussed at the public hearing on Thursday, 23 January 2025, as part of the Revenue Legislation Amendment Bill 2024.
The Revenue Legislation Amendment Bill 2024 proposes significant updates to Queensland’s tax and revenue systems.
Key objects of the bill currently include increases in surcharges, land tax adjustments, payroll tax reforms, and fund transfers.
Antonia Mercorella, REIQ’s chief executive officer, highlighted the importance of the initiative to add to the bill, which will allow first home buyers to lease spare rooms within 12 months of purchase without penalties, aiming to ease financial pressures on first home buyers while addressing rental market challenges.
“This initiative is a win-win for both home owners and renters in Queensland, and we are proud to have instigated this common-sense change,” Mercorella said.
The chief executive further emphasised that while alleviating financial and rental accessibility pressures, the initiative aligns with REIQ’s vision to boost home ownership.
The REIQ estimated that even if 2-5 per cent of the 21,000 annual first home buyers participate in renting out rooms, it could significantly boost the market.
In addition to supporting first home buyers, the REIQ is urging the Queensland government for the initiative to be expanded to encourage home owners in underutilised properties, such as empty nesters, to rent out unused rooms.
Mercorella emphasised the importance of community education to address home owners’ concerns about tax, insurance, and legal considerations.
She also urged the government to explore exemptions for capital gains and land tax to encourage participation in the initiative.
“While we acknowledge that this measure alone is no silver bullet solution, it is an example of the type of innovative, individual actions that collectively make a material impact on the broader housing market,” she stated.
The REIQ will formally present its submission on the Revenue Legislation Amendment Bill 2024 during a public hearing next week.
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