Page 3926 - Week 11 - Tuesday, 15 Sept 2009
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We are concerned, however, that the commonwealth government is now watering down the first home owner boost by 50 per cent from 1 October 2009, and it will cease altogether on 31 December of this year. This is at a time when it is not clear that the worst of the global financial crisis is behind us. Indeed, the head of the commonwealth Treasury, Dr Ken Henry, in his address to the Australian Industry Group on 17 August, remarked:
… we have been well placed to deal with the considerably larger challenges of the past year or so but, as many people have noted, the task of economic reform is ongoing; and it must continue.
Our concern is that, while these changes today are essentially to cover off the statutory requirements under the first home owner boost, the benefits for all concerned but, in particular, individuals and couples buying their first homes from 1 January 2010 may be short lived when the boost ceases on 31 December. While we have no assurances that the global financial crisis is behind us, it would seem logical to continue the boost until a greater degree of stability has returned. I am sure the ACT Treasurer would be pleased for that to happen as she tries to cover off the deficit we have. Mr Stanhope stated as much on 14 August when he warned that there could be a drag-forward effect from the first home owner grant boost, saying that you would expect a similar dip in expenditures somewhere in the outyears.
We understand that there is a need for these amendments to pass through the Assembly close to the date of effect of the extension of the first home owner boost from 1 July 2009, and, while we are concerned that the scheme is being phased out, the ACT Greens will support these amendments.
MS BURCH (Brindabella) (10.58): I would like to speak in support of the First Home Owner Grant Amendment Bill 2009 (No 2). These amendments will allow for the continuation of a highly successful first home owner boost scheme, or the boost. The Australian government has announced that the boost will be continued after enormous public support. The ACT government will continue to support the Australian government by administering the boost on its behalf.
In the 2008-09 financial year, the ACT provided approximately 1,800 boost payments, 3,000 first home owner grant payments, and approximately 2,000 duty concessions to homebuyers. The extension of the boost will continue to provide more opportunities for Canberrans to enter the housing market. The increase in activity in the construction industry continues to support and provide jobs for apprentices, builders, plumbers, electricians and tradesmen. The Prime Minister has also pointed out that the banking sector has benefited from employing more people because of an increase in processing new loans, and there has been a flow-on effect to other small businesses associated with the housing industry.
The boost was introduced by the Australian government as a temporary but vital part of the government’s response to stimulate the economy. The Australian government has reported that finance for the construction of new houses has increased by 55 per cent since October 2008, and in recent months first homebuyers have made up a record share of the housing market.
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