Page 3628 - Week 12 - Tuesday, 22 October 2013
Next page . . . . Previous page . . . . Speeches . . . . Contents . . . . Debates(HTML) . . . . PDF . . . . Video
In addition, with the homebuyer concession scheme, which provides significant discounts on conveyance duty for those eligible—which includes those with household incomes of up to $160,000, so about three-quarters of Canberra households are eligible—the stamp duty falls to just $20. When combined with the first home owner grant in the purchase of a new home, that is a $26,000 boost to a first homebuyer—a $26,000 boost by way of a stamp duty cut and a first home owner grant for a new home.
It is no wonder that we are seeing a massive surge in building approvals, as we have sent a very clear signal to the market to supply more houses. That is what will assist in meeting the affordability challenge.
Not only do these changes benefit first homebuyers; they help drive an increase in the number of dwellings available across the territory. This puts downward pressure not only on house prices but on rents. We have seen that flowing through the economy in recent times.
It is interesting that Mr Hanson spoke of the lease variation charge and made the suggestion that every unit was $31,000 more expensive as a result, in a number of areas.
Mr Hanson interjecting—
MR BARR: Unit prices have fallen since the LVC was introduced, Mr Assistant Speaker, so there goes that little campaign out the window. The facts do not bear it out. We have seen unit prices—
Mr Coe interjecting—
MR ASSISTANT SPEAKER (Mr Gentleman): Order, members! Mr Coe!
MR BARR: We have seen unit prices falling across the territory—so much so that there are now calls from industry for the government to slow down the release of land for new units. We are being told that there is an oversupply of units in the city.
Opposition members interjecting—
MR ASSISTANT SPEAKER: Minister, I ask you to take your seat for a minute. Members on the opposite side, I have called you to order a number of times now. Mr Coe, I have mentioned your name once. Can we please hear from the minister in silence.
MR BARR: Thank you, Mr Assistant Speaker. As part of the government’s tax reforms, stamp duty has been cut on every single property in the territory. It may have escaped the Leader of the Opposition, but marginal tax rates apply. It is not that you pay 7.25 per cent flat if your house is above a certain value; you pay a marginal rate, just like your income tax, according to the different brackets for stamp duty. And we have been cutting those.
Next page . . . . Previous page . . . . Speeches . . . . Contents . . . . Debates(HTML) . . . . PDF . . . . Video