Sweeteners for first homebuyers but otherwise little relief in Queensland's 2025-26 budget

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11 hours ago

From his family home in Logan, near Brisbane, father-of-two Stephen Coles was pessimistic about what the most recent Queensland budget — the first for the LNP state government — would do for his family.
"There's probably not a lot in it, to be honest," the data analyst said.
"Most of the big-ticket items have been taken away … there's not much in it for this family."
Mr Coles, who lives in Yarrabilba with his wife and two daughters aged 13 and 10, said it had been disappointing to have lost the $1,000 energy bill rebate brought in by the former Labor government in its final budget last year.
"I think most people are struggling with the cost of living at the moment," he said.
The signature cost-of-living measure of the budget was a $100 voucher for families with school-aged children, but for Mr Coles, who has one primary school-aged child, that didn't offer much more than groceries for half a week.
"In fact, it probably covers our dog food for the week — that's as far as it's going to go," he said.
And while the lack of support didn't weigh too heavily on him, he acknowledged that other families may have expected more from the government.
He said many of his friends were experiencing rental stress and couldn't afford the homes they were in, and he would have liked to have seen more done to relieve that pressure.
For the Queensland Council of Social Service (QCOSS), the cost-of-living measures on offer in the budget appeared "sensible."
The existing electricity rebate scheme for vulnerable households, including seniors, pensioners, and concession card holders, will increase by $14 to $386.
QCOSS CEO Aimee McVeigh said the "devil [was] in the detail" when it came to the continuation of that more targeted measure.
"We don't know exactly where [the] government is targeting," she said.
"We know the cost of energy is going to continue to increase in Queensland, and those concessions which have been in place have made a real difference to families on low incomes."
Fifty-cent public transport fares and $200 sport vouchers were also included among cost-of-living measures.
In Rockhampton, about eight hours north of Brisbane, pensioner Jean Robinson was disappointed more hadn't been offered for older Queenslanders.
Ms Robinson, president of the Rockhampton Seniors Citizens Club, said she came across many people who could not afford to feed themselves.
"Pensioners need more than a rebate — you can't eat electricity," she said.
University of Queensland economics professor John Quiggin described the budget as "restrained" for an incoming state government.
"They haven't made a big change or big cuts the way, for example, the Newman government did when it came in," he said.
But he said he wouldn't characterise the $100 vouchers as "targeted" relief, as Treasurer David Janetzki had yesterday.
"Everybody gets it whether they need it or not," he said.
"It is not enough to make a difference to people who are struggling, but it is a nice handout for well-off people who have a few kids at school."
But Professor Quiggin said cost-of-living relief like energy rebates were not a "sensible way of doing things".
"What matters is whether people's wages can cover what they need to buy," he explained.
In Ipswich, west of Brisbane, it was a promise of more help for first homebuyers that caught the attention of newlyweds Zinclaire and Jake Patroni.
From July 1, a shared ownership scheme will mean people who meet certain income thresholds with as little as a 2 per cent deposit can be supported to buy a home.
The government will guarantee 30 per cent equity for new builds and 25 per cent for existing homes, up to a home value of $1 million.
It will cost $165 million over two years.
The couple has been renting for four years from Mr Patroni's parents and, until yesterday, home-ownership had felt both a "bit far-fetched" and "disheartening".
She said the Boost to Buy equity scheme made the dream of buying a house — ideally one with a bay window and enough room for a games room and children — feel a little more achievable.
"I guess I would stay on the safe side and go for, like, a minimum affordable house, but it will definitely make it very possible," she said.
The $30,000 first home owner grant will also be extended for 12 months through this budget.
CEO of the Real Estate Institute of Queensland (REIQ), Antonia Mercorella, described the scheme as both realistic and pleasing.
"It's good to see Queensland coming out with one of the most generous shared equity schemes in the country," she said.
"Setting that price threshold at $1 million … reflects the median property prices that we are seeing here in the sunshine state."
Ms Mercorella said the income thresholds were also "realistic" in a state that she said had the lowest proportion of home ownership in the country.
And although she acknowledged concerns about an "inflationary" impact, Ms Mercorella said the numbers of applicants for the scheme were so small they would be unlikely to "distort the market in a material way".
Professor Quiggin characterised the scheme as similar to "a hundred" others that had been put in place around the country over the years.
"They are essentially misconceived," he stated.
"The problem in the housing market isn't first home buyers, the problem is the difficulty [for] renters and the continuation of policies that favour existing homebuyers by keeping prices high."
Meanwhile, the government has forecast the state's debt to remain at record levels, likely eclipsing $205 billion by the 2028-29 financial year.
That deficit is smaller than had been projected in the January mid-year update but larger than Premier David Crisafulli had promised ahead of the election.
The government has blamed GST reductions and declining coal royalties for that difference.
But the opposition has repeatedly accused the government of "juicing the books".
Speaking to the media yesterday, shadow treasurer Shannon Fentiman said the government had played politics with the budget, which had cost Queenslanders millions.