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Legislative Assembly for the ACT: 2004 Week 05 Hansard (Tuesday, 4 May 2004) . . Page.. 1738 ..

cost shifting to the states and territories, using growth in GST revenues as their rationalisation of the process. This amounts to the federal government reneging on the provisions of the intergovernmental agreement that was a prerequisite of the introduction of the GST, which was promised as a growth tax.

Housing

Mr Speaker, traditionally the territory has enjoyed high housing affordability, due to relatively high incomes, a higher participation rate, and a lower unemployment rate. However, due to the confluence of a number of factors, the housing market has experienced unprecedented sustained growth over the past few years, both in activity and in prices. Ironically, high affordability due to low interest rates and high incomes has stimulated demand to such an extent that some members of our community have been excluded from home ownership.

In recent years, successive Commonwealth governments have made significant changes in policy that will have an impact on people’s ability to buy a home, pay rent, or invest in a rental property. The ACT government, along with the other state governments, has called on the Commonwealth government to work jointly towards the development of a national housing policy.

Mr Speaker, we continue to hope that the Commonwealth will take a lead role in this important national task. However, the recently concluded Commonwealth-State Housing Agreement does not appear to provide great comfort in this regard. Once again, funding to the states and territories has been reduced in real terms, along with considerable cost shifting to the states. This is not a good signal. Public housing remains the most viable and economic housing option for some of the most vulnerable in our community.

Mr Speaker, notwithstanding this, our government has worked hard and developed a comprehensive package of measures to alleviate housing stress. Following the report of the affordable housing task force, the 2003-04 budget provided $13.4 million to respond to homelessness, and $3 million to enhance the community sector’s capacity.

Appropriation Bill 2003-2004 (No 3), which is in front of this Assembly, provides a further $33.2 million for public housing, Aboriginal housing and community housing.

Mr Speaker, this budget provides further measures in the package, at an estimated cost of $63.6 million over four years, targeted at alleviating housing stress and improving housing affordability.

Additional funding of $1.6 million is provided over four years for emergency accommodation, a further $20 million over four years for public housing, and changes have been made to eligibility criteria for stamp duty concessions for first home buyers and reducing the tax burden on rental properties.

Recently announced changes to stamp duty concessions for first home buyers and to land tax on investment properties should contribute significantly to the capability of families to achieve home ownership and to the availability of rental accommodation.

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