Page 883 - Week 03 - Wednesday, 21 March 2018
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First and foremost, our government is leading the nation in progressive taxation policy for first homebuyers. With the phasing out of taxes such as stamp duty, first homebuyers will have better access to the market and will no longer need to borrow thousands of extra dollars in order to afford the tax. In phasing out stamp duty, we are targeting the most affordable homes first to drive change fast. These tax reforms are supported by almost every economist in Australia who understands the effect of speculative investment, and I am proud that our government has responded accordingly. These policy changes have already taken real effect. Over the past 12 months the ACT recorded the highest growth in the number of first homebuyer approved loans, with almost 22 per cent of loans being for first homebuyers.
When it comes to tax reform, it is sometimes too easy to get caught up in the high-level economic analysis rather than reflect on the real impact that it has on people’s lives. Our changes to stamp duty are a perfect example of this. Make no mistake; these changes have made a significant impact on the cost of buying a home. To give an example, if we compare stamp duty on a $300,000 home in 2011-12 and 2017-18, we see that there is a 45 per cent reduction in stamp duty. That is a significant change and it will make it easier for people to enter the housing market, especially at lower price points. Similarly, at higher price points, for someone buying an $800,000 house the stamp duty in 2017-18 as compared to 2011-12 has been reduced by over a quarter. That has a huge impact, and we are seeing the benefit flow through in home purchasing data.
The economic policies of our government have given the ACT a home loan affordability index reading of nearly 51 per cent. That is far above the national average of just under 32 per cent. Of course, the higher the value of the index reading the more affordable the market, which is good news for people looking to buy their first home. These policies, alongside our strong economic performance, low unemployment rate and comparatively high wages, are helping to keep home ownership within the reach of everyday Canberrans.
Alongside sweeping tax reforms, which help to make houses more affordable, our government is ensuring that the supply of housing keeps up with demand. It is this focus on meeting demand with supply measures that puts Canberra at the forefront of making housing accessible. Given that our territory grows by 7,000 people each year, and there are expected to be half a million Canberrans by 2030, it is imperative that more land be freed up to make way for the building of affordable homes for new Canberrans.
Over the past 10 years our government has released 37,000 dwelling sites to ensure that we continue to match the increased demand for housing. Of these, some 2,000 sites have been dedicated to affordable homes for purchase at pre-determined rates. It is this release of land that has allowed the development of new dwellings in rapidly expanding areas, like in my own electorate of Yerrabi.
The Housing Industry Association report found that, as well as the ACT government’s nation-leading tax reform program “having the anticipated positive impact on the economy”, it has also encouraged more construction and has seen more homes added
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