Page 5176 - Week 14 - Tuesday, 28 November 2017
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industry groups and other stakeholders; to be closely coordinated with the review of housing affordability policies et cetera; and to introduce any resulting changes to charges by the 2019-20 budget cycle, with appropriate communication and transitional arrangements as necessary.
This is a motion that is important. It includes consultation. It includes careful review of all the elements of the LVC, which is not what happened in this case, in the budget this year. We have the opportunity now to ask this Assembly to demand that these types of changes, with no consultation, stop. We have the opportunity today to say, “Enough is enough. You cannot make these changes without suitable consultation.” We have the opportunity to say to this government, “Go and review the LVC before you implement these changes.” Putting forward this notice of disallowance of the disallowable instrument is the last-ditch effort to salvage something from this debacle of the huge increase, the 300 per cent increase, in the LVC on unit titling.
Earlier in the year, when this came out, we had some comments from Ms Le Couteur in the paper. She said she thought the increase was unfair. She talked about the Greens being champions for housing affordability. Yet in the budget they supported this increase. They talk about the importance of housing affordability, but I have yet to see them actually stand up and make it happen by voting against these types of charges.
Many people will be worse off because of this decision. Many young people will be worse off. Many young people enter the housing market for the first time with a new unit, a townhouse, an apartment or a smaller housing model, because they cannot afford a big house in the suburbs, or even a small house in the suburbs. A smaller thing such as a unit is a way for them to enter into the housing market and start on their journey of the great Australian dream of home ownership. At this point it is something that we all still aspire to. But this big tax, this 300 per cent increase in the LVC on unit titling, will affect young people, it will affect other first home buyers and it will affect those who want to age in place. We are seeing young people being locked out of the housing ownership market, but it will also affect those who want to rent, because any increase in the price of units will be reflected in the rent that landlords charge.
A recent QBE report forecast that there will be a double-digit house price increase over the next seven years in Canberra. This is going to make it even more difficult for young Canberrans and first home buyers to enter into the housing market. On top of that, the government is looking to increase LVC on unit titles by 300 per cent.
I have said it before in this place, I have said it in estimates and I have said it in annual reports hearings, I am sure: I am gobsmacked by this change, this 300 per cent increase. In any other area of our life, people would not stand for a 300 per cent increase. It just does not stack up.
This change will encourage people to build their house and retain it. It will not encourage them to build and sell. It will not encourage more land being put to market. It will encourage the building of—and I think I am quoting Ms Le Couteur and probably many other people—McMansions. I think she was quoted in the newspaper as saying that. Back in July, Ms Le Couteur said the Greens:
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