The NSW Government has released its housing affordability package with a strong focus on first home buyers, increasing supply and infrastructure delivery.
The Housing Industry Association has has come forward to welcome stamp duty exemptions for first home buyers, after calling for a revision of the existing stamp duty concessions for the past two years, according to Housing Industry Association NSW Executive Director David Bare.
“Lifting the stamp duty exemption cap to properties worth $650,000 with discounts on a sliding scale to properties valued at $800,000 is a step in the right direction,” he said.
“The first home buyer stamp duty measures, initially introduced in 2012, have simply not kept pace with increasing property prices in recent years and HIA has been pushing for a full stamp duty exemption on properties up to $750,000 which would be more impactful in the current market.
“It is important to reassess these caps if they prove to be too restrictive."The HIA said it was unclear to them what stamp duty concessions apply to vacant land in the latest announcement.
The First Home Owners Grant remains at $10,000 which is low compared to other states.
Additional funding of $2.145 billion for state infrastructure to accelerate housing priority areas is a much needed investment.
“Delivering infrastructure in a timely manner to priority growth areas is critical to maintaining dwelling supply levels and reducing delays,” Mr Bare said.
“However the potential increases in developer levies could adversely impact dwelling prices.
“The Medium Density and Green Field Housing codes are also positive measures for supply if they can be effectively implemented.
“The doubling of the foreign investor surcharges on stamp duty from 4% to 8% and land tax to 2% is a blatant tax grab that could backfire on the NSW Government and negatively impact supply in a market that is coming off the boil.
“Exempting those businesses unintentionally impacted by the surcharges is appropriate and welcomed.”