Thursday 5 June 2008
Extra financial help for first-home buyers will be a key pledge
in Treasurer Kevin Foley's seventh Budget today. Under a change of
stamp duty concessions contained in the Budget the first-home owner
grant will increase by $4000 to $11,000 for most South Australians
battling to enter the housing market.
Mr Foley this afternoon will announce the "significant help" for
aspiring homeowners as he scraps the first-home buyer stamp duty
concession scheme. The concession, which offered a sliding-scale
discount on the stamp duty payable on homes up to $250,000, will be
replaced by the new $4000 bonus grant.
The payment to be provided on top of the Federal Government's
$7000 first-home owner grant administered but the State Government
will be available on homes up to $400,000.
The $4000 payment will phase out between $400,000 and $450,000.
It will cost the Government $32 million next financial year and
$130 million over four years. The new $4000 state grant will take
effect for first0home purchase contracts entered into from
today.
Mr. Foley last night said the budget measure was "a recognition
by the government that getting your first home is an expensive and
an increasing cost and we should improve the amount of assistance
we give". "We ate streamlining assistance. With state and federal
grants, first-home buyers will effectively get as cheque from
government of $11,000," Mr Foley said.
Strict eligibility requirements remain in place for the state
and federal grants, including never having owned property before.
Grant recipients also must live in the property within 12 months of
settlement and occupy the home as the principal place of residence
for a minimum of six months.
The Government believes more that 9000 first-home buyers will
receive the full $4000 grant during the next year, with almost 95
per cent of all first-home buyers receiving some form of financial
assistance.
Treasury estimates that to be almost double the number that
would have received help under the stamp duty concession.
Mr Foley last night said the measure was part of a State Government
plan to ensure "the Australian dream" of owning a house remained
accessible for "as many people as possible".
The issue if stamp duty relief for first-home buyers had sparked
fiery scenes in parliamentary question time.
Opposition Leader Martin Hamilton-Smith asked Premier Mike Rann why
young South Australians paid more taxes on their first home than
those in any other state or territory.
"A first-home buyer buying a house at the median scheme in
Australia". "But, do you know what? It is not impeding or
stopping people buying and building homes," He said.
Adelaide's Median house price jumped almost 19 per cent last
year to $350,000. It has trebled in the past decade. Some
independent experts, however, question the impact of government
assistance on increasing housing affordability.
ANZ chief economist Saul Eslake last September warned increasing
the first-home buyer grant would not address the housing
affordability crisis because is would further boost demand by
effectively giving extra cash to buyers. In April, however, the
Urban Development Institute of Australia (SA) told a Senate
committee inquiry into housing affordability that high taxes and a
lack of land were the main problems.
Mr Foley acknowledged "timely" land release as an issue and said
a package of significant planning would be announced this
month.
"We are acutely aware of the need to continue to the release
decent parcels of land for housing," he said.
"We are the most affordable place in mainland Australia and we
have to keep that position." He said part of the reason for
introducing the $4000.
Contacts:
Jim Shapcott, Chairman, Battle of the Builders on 0412 888
619
Paul Nash, General Manager Communities Queensland, Devine Limited
on 0439 730 424