The proposed change to the Revenue Legislation Amendment Bill 2024 would remove restrictions that previously prevented homeowners from renting out rooms within the first 12 months of purchase without losing their benefits.
REIQ CEO Antonia Mercorella said this initiative originated from their organisation and could make a significant difference.
“This initiative is a win-win for both homeowners and renters in Queensland, and we are proud to have instigated this common-sense change,” Ms Mercorella said.
The change could potentially unlock thousands of new rental opportunities, with approximately 21,000 first home buyers annually who were previously restricted from leasing part of their property in the first year.
“Even a modest 3-5 per cent of these homes being rented out could provide a meaningful boost to the rental market,” Ms Mercorella said.
The REIQ is pushing for the initiative to be expanded further, suggesting incentives for empty nesters and homeowners with underutilised spaces to rent out their spare rooms.
Ms Mercorella said it was important to address homeowners’ concerns about the potential implications.
“To ensure the success of this measure, we must provide clear guidance and resources to homeowners, so they understand the tax implications, insurance considerations and contractual agreements involved in renting out a room,” she said.
The organisation is particularly focused on addressing potential capital gains tax and land tax concerns, advocating for possible exemptions to encourage participation.
The REIQ will present its submission regarding the Revenue Legislation Amendment Bill 2024 at a public hearing next year, marking a significant step toward implementing these changes.
“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,” Ms Mercorella said.
