Page 177 - Week 01 - Wednesday, 10 December 2008
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Other recent indicators suggest Canberra’s housing affordability index has been slipping. With an affordability index of 84.9, we were much less affordable than Sydney, Melbourne, Perth, Adelaide and Hobart. The recent quarter saw Canberra become less affordable than Perth and Sydney, a position it has not been in for years. Much of this has happened as a result of the mismanagement of land by the Stanhope government over a period of time. Much of it is a result of the outrageous levels of taxation that are applied to first homebuyers in the ACT.
The Canberra Liberals’ policy to abolish stamp duty for first homebuyers is a clear and effective way to assist young families in the fight to make housing more affordable. Mr Stanhope responded to our announcement by saying, “We’re making great progress, and entertaining stunts like lifting the threshold to $500,000, forgoing $30 million in revenue in just a vote-buying grab, won’t work, won’t affect affordability.” It is a sign of how out of touch he is that he believes stamp duty makes no difference to affordability.
We do understand that the existing tax is grossly excessive and is a serious impediment to young Canberrans who aspire to own their own first home. Let me give a few examples of just what an impact Stanhope Labor’s stamp duty has on the real lives of young homebuyers. These are some scenarios that are pretty typical of first homebuyers:
• Dave is an APS5 on an income of $56,000 and Jenny is an APS6 on $68,000. They have one child. They are buying a $410,000 house, with three bedrooms, in Woden. They are not eligible for any stamp duty concessions. They will pay thousands in stamp duty.
• Greg and Helen earn $90,000 from their small business, plus $40,000 working part time. They have two young kids. They buy an ex-govie for $386,000. They are not eligible.
• Hamish and Lisa are EL1s. They have one child and twins on the way. Lisa will soon leave work for six months, then work part time while their kids are young. They are buying a four-bedroom home in Gungahlin, with a small yard, for $480,000. They are not entitled to any relief from this government.
This bill represents real and effective relief. Under my bill, new stamp duty exemption will extend to first homebuyers who already meet the eligibility test in the ACT for the first homeowners grant. The eligibility criteria include the following:
• An applicant must be at least 18 years old and an Australian citizens or permanent resident;
• none of the applicants or applicants’ domestic partners can have previously owned a home either jointly or separately or with another person; and
• an applicant must occupy the home for a continuous period of at least six months, beginning within one year of settlement or completion of construction.
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