Primose Mroczkowski and Jenny Lee review housing affordability measures announced by various State Governments in recent weeks.
In measures that appear to reflect a wider trend (as demonstrated by the 2017 Budget announcements in the Northern Territory and Victoria), the New South Wales (NSW) Government has announced housing affordability measures ahead of the 2017 State Budget to be delivered on 20 June 2017.
The measures, proposed to take effect from 1 July 2017, are intended to boost housing supply and deliver infrastructure to growing communities. Concessions which could fuel demand by first home buyers are countered by surcharges which could cool that of investors and foreign buyers.
For first home buyers, the measures include:
For property investors and foreign purchasers and landowners, the measures include:
The foreign developers will be exempt from the increased surcharges with transitional provisions yet to be announced.
NSW appears to be following Victoria with both the enhanced first home buyer concessions and the increase in these 'disincentive' measures. It remains to be seen whether Queensland will also follow suit being the only other jurisdiction to impose these foreign surcharges.
|Foreign purchaser duty surcharge (residential land only)||Absentee owner land tax surcharge|
|NSW||Original rate: 4 percent
From 1 July 2017: 8 percent
|Current: 0.75 percent
2018: 2 percent (residential land only)
|Victoria||Initial rate: 3 percent
Current rate: 7 percent
|2016 year: 0.5 percent
Current: 1.5 percent
|Queensland||Initial/Current: 3 percent||Higher companies/trustees rate applies to absentee owners rather than individual rates|
The recent Australian Capital Territory (ACT) Government Budget also announced measures that appear to be influenced by recent reforms in other States. Media reports relating to the measures suggest the following changes: