Despite the ongoing pandemic, the QLD Budget is forecast to be in surplus by the middle of 2025. This is due to a large increase in tax revenue from the State’s booming property market of 21.4% over the 2020-21 financial year. Around 9.3% of taxation revenue in the next financial year will be from land tax, which will provide the Government with around $1.617 billion. Plus, there is an estimated 24.5% in transfer duty for 2021-22 which totals around $4.59 billion.
The Palaszczuk Government has allocated billions in the 2021-22 Budget for boosting the housing supply and reducing homelessness across the state. In fact, this bold new plan will be Queensland’s largest social housing investment in the State’s history at $1.9 billion investment over the next 4 years.
This almost $2 billion investment signals a brand-new approach to affordable housing and homelessness. The focus will be on providing almost 10,000 housing units and building over 7,400 new dwellings for the homeless, with $30 million earmarked for fast-tracking these housing projects over the next six months alone.
Housing Investment Fund
There is also $1 billion in the QLD Budget to establish a brand new Housing Investment Fund. With an anticipated $160 million generated over the next 4 years, the fund will be used to increase the housing supply to cover both current and future demands. This will be achieved by upgrading existing and building new dwellings in order to provide around 6,000 houses for the over 47,000 vulnerable Queenslanders currently on the social housing waiting list.
The Housing Investment Fund will also be spent on preliminary works on government-owned land and feasibility studies into new housing projects to speed up the process of securing stable accommodation. And with housing shortages already an issue, ensuring supply coincides with population growth will be even more essential during the lead up to the Olympics in 2032.
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