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Property Council Pushes for Development Activity Boost

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Removing breaks on development activity and the release of 1000 hectares of industrial land form part of a $1.7 billion Victorian Property Council proposal to kick-start the state’s economy post pandemic.

Following the federal government’s "home builder" announcement Thursday, the Property Council has outlined a seven point plan focused on Victoria's property sector.

“The road to recovery is a long one,” Property Council Victoria executive director Cressida Wall said.

“The proactive approach taken by the state government in supporting the property sector through early stimulus measures has ensured Victoria is in a position to combat the economic challenges ahead.”

“Taken together, at a cost of $1.7 billion, the measures in this Victorian Plan could stimulate $24.4 billion worth of economic activity and create or protect 315,000 jobs,” Wall said.

The Victorian Department of Treasury released modelling in April predicting 270,000 jobs would be lost in the state by September this year, it also said gross state product would fall by $32 billion in the first half of 2020 and property prices would fall by 9 per cent by the end of the year.

Related: Victoria Approves $1.2bn Of ‘Shovel-Ready’ Projects

The lobby group’s seven point plan includes a housing construction economic boost which proposes to triple the first home owners grant for new dwellings for six months, and the deferral of stamp duty over the course of three years for purchasers of new dwellings.

It also includes fast-tracking projects, relaxing current C270 CBD planning controls, removing brakes on development activity, and reshaping tax settings which include reinstating off the plan stamp duty concession for investors for projects in the next 12 months.

Under “supercharging planning”, the council says one of the key areas for economic development in the state is industrial projects.

It suggests prioritising government surplus land disposal, including small, medium and large sites or precincts, the release of 1000 hectares of land for the fast track of industrial projects, and $40,000 grants to industrial projects that demonstrate more than 51 per cent of local content in materials and labour.

The proposal follows Scott Morrison’s announcement of $25,000 grants for new home builders or renovation projects, with the aim to stimulate the construction sector.

The home builder stimulus package contained conditions, with the total cost of the job requiring to be at least $150,000.

To be eligible, a couple has to be earning less than $200,000, or singles have to earn under $125,000.


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Article originally posted at: https://theurbandeveloper.com/articles/development-housing-construction-proposal-to-kickstart-victoria-economy