❓ Ms Saffioti questions the Treasurer on the adequacy of stamp duty exemptions for first home buyers, given rising house prices. The Treasurer defends the government's policy, blaming the previous Labor government for market failures and highlighting the current focus on incentivising new home construction.
AnsweredQoN 339Legislative Assembly
QuestionView source ↗
FIRST HOME
BUYERS — STAMP DUTY
339. Ms R. SAFFIOTI to the
Treasurer:
In 2007 the Treasurer
referred to first home buyers as an endangered species. At that time the former
Labor government introduced stamp duty exemptions for home purchases up to $500
000. The Treasurer was worried about first home buyers when the average first
home price was $370 000 and the exemption threshold was $500 000. Given that
average first home price is now $470 000 and the exemption threshold has been
dropped to $430 000 is the Treasurer now worried about the survival of the
species?
BUYERS — STAMP DUTY
339. Ms R. SAFFIOTI to the
Treasurer:
In 2007 the Treasurer
referred to first home buyers as an endangered species. At that time the former
Labor government introduced stamp duty exemptions for home purchases up to $500
000. The Treasurer was worried about first home buyers when the average first
home price was $370 000 and the exemption threshold was $500 000. Given that
average first home price is now $470 000 and the exemption threshold has been
dropped to $430 000 is the Treasurer now worried about the survival of the
species?
AnswerView source ↗
I probably did say
that back in 2007, but that was in the context of a 350 per cent increase in
house prices over a few years.
Mr B.S. Wyatt interjected.
Dr M.D. NAHAN : The trajectory in house prices under the
Labor government's watch was just terrible. The reason for that was
that the previous government rigged the market by not releasing enough land on
to the market.
Mr B.S. Wyatt : What?
Dr M.D. NAHAN : There is no doubt about that. In July 2006,
the metropolitan area ran out of new land for housing. The minister at the time
did not think it was a big issue. The previous government was very comfortable
reaping windfalls of $500 million a year from conveyancing fees on housing. It
was interested in the money, rather than solving the housing problems. By the
way, the former government did not do anything about public housing to address
those shortages. So, in a newspaper article, I did say that if we did not do
something we are going to crowd out people from the housing market. In 2002 the
Labor government was receiving $500 million in conveyancing fees, but in 2007–08
the figure had risen to $2.5 billion. Rather than solve the problem, the former
government used some of the huge windfall it had received to give first home
buyers an exemption from paying stamp duty for houses valued from $500 000 and
phasing out at $600 000. Since then, house prices have more or less stabilised.
Several members
interjected.
Dr M.D. NAHAN : They have remained more or less stable.
Blocks for new homes are now available; there is no drastic shortage. This
government is trying to do what the former government should have done, which
is to address the problem. The problem is not houses per se; it is building new
stock. The government has gone out and focused its policies on encouraging
people, including first home buyers, through the first home buyers grant and
through the exemption level, to build new houses. We have not changed the
exemption. We decreased the subsidy level from $500 000 to $430 000, which is
about the norm for most first home buyers. We capped the exemption at $300 000
for the land, because new houses do not pay stamp duty. The government has
reorientated the policy appropriately to encourage people to build new houses
rather that to buy existing properties. That is what we have done; they
are called incentives. We have limited money. The Labor Party would go out and
blow a lot of money, but we are targeting our incentives on first home buyers
and new homes. That is what a good government does, rather than throw money
around, as the member for West Swan would like us to do.
that back in 2007, but that was in the context of a 350 per cent increase in
house prices over a few years.
Mr B.S. Wyatt interjected.
Dr M.D. NAHAN : The trajectory in house prices under the
Labor government's watch was just terrible. The reason for that was
that the previous government rigged the market by not releasing enough land on
to the market.
Mr B.S. Wyatt : What?
Dr M.D. NAHAN : There is no doubt about that. In July 2006,
the metropolitan area ran out of new land for housing. The minister at the time
did not think it was a big issue. The previous government was very comfortable
reaping windfalls of $500 million a year from conveyancing fees on housing. It
was interested in the money, rather than solving the housing problems. By the
way, the former government did not do anything about public housing to address
those shortages. So, in a newspaper article, I did say that if we did not do
something we are going to crowd out people from the housing market. In 2002 the
Labor government was receiving $500 million in conveyancing fees, but in 2007–08
the figure had risen to $2.5 billion. Rather than solve the problem, the former
government used some of the huge windfall it had received to give first home
buyers an exemption from paying stamp duty for houses valued from $500 000 and
phasing out at $600 000. Since then, house prices have more or less stabilised.
Several members
interjected.
Dr M.D. NAHAN : They have remained more or less stable.
Blocks for new homes are now available; there is no drastic shortage. This
government is trying to do what the former government should have done, which
is to address the problem. The problem is not houses per se; it is building new
stock. The government has gone out and focused its policies on encouraging
people, including first home buyers, through the first home buyers grant and
through the exemption level, to build new houses. We have not changed the
exemption. We decreased the subsidy level from $500 000 to $430 000, which is
about the norm for most first home buyers. We capped the exemption at $300 000
for the land, because new houses do not pay stamp duty. The government has
reorientated the policy appropriately to encourage people to build new houses
rather that to buy existing properties. That is what we have done; they
are called incentives. We have limited money. The Labor Party would go out and
blow a lot of money, but we are targeting our incentives on first home buyers
and new homes. That is what a good government does, rather than throw money
around, as the member for West Swan would like us to do.
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