Page 2604 - Week 09 - Tuesday, 25 September 2007
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Environment, Water and Climate Change, Minister for the Arts) (12.06), in reply: Mr Speaker, I will close the debate. The Revenue Legislation (Housing Affordability Initiatives) Amendment Bill 2007, as we know, amends the Duties Act 1999, the Rates Act 2004 and the Land Tax Act 2004.
The government recognises the importance of affordable housing and the need to ensure households can access appropriate and affordable housing options. While many ACT households have benefited from the increase in housing wealth in recent years, other parts of the community have not enjoyed the same advantages. For these households, accessing Canberra’s housing market has become, as we all know, far more difficult.
The government was not prepared to allow this situation to continue. Earlier this year it announced its affordable housing action plan to address this situation. The action plan contained a number of initiatives designed to improve housing affordability. Through the implementation of this wide ranging and ambitious action plan, the ACT government has taken the lead in helping families to achieve more affordable home ownership.
The amendments contained in this bill implement a number of initiatives set out in the ACT government affordable housing action plan. The home buyer concession and the first home owner grant schemes are already helping ease the burden placed on potential home owners, but more, of course, is needed. This bill, the first in a series of housing affordability initiative bills, will make the dream of home ownership a reality for many more Canberrans.
The first new initiative to be introduced in this bill is to allow eligible home buyers to defer duty payments for up to five years. The first step towards home ownership is invariably the hardest. Along with the cost of meeting interest payments, many households are also trying to meet costs associated with furnishing their home. This new measure will help to ease the cost of entry into the housing market for many Canberrans by easing some of the financial pressure at the time of purchase. As a result of this measure, households will be able to save for the duty owed, instead of finding the money to pay it up front. This measure will significantly reduce the upfront costs first home buyers currently face, and will assist more ACT residents to enter the housing market.
The stamp duty deferral initiative is expected to help around 2,500 households in the ACT, deferring around $20 million in duty each year. By linking the deferral to households eligible for the first home owner grant and the home buyer concession scheme, the deferral of duty is being targeted at those most in need of assistance. These are households who have not benefited from past increases in housing wealth and are often not well positioned to pay duty. This government is bringing home ownership a step closer for these households. The bill also changes the taxation treatment for purchasers of affordable house and land packages. Home buyers will only be required to pay for the deposit on the land, and can defer the full payment until their home is ready to occupy.
The release of affordable house and land packages themselves will have a significant impact on housing affordability. They will provide a greater choice in housing options
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