The ACT Budget is bad news for new homebuyers and the building industry generally, according to the HIA.
HIA’s ACT and Southern Region executive director Caroline Lemezina said that once again the Territory Government has failed to recognise the importance of the housing industry to the ACT economy.
Lemezina said for every $1 million spent on construction, seven jobs are generated directly within the construction industry including four in building material manufacturing and two in supply industries.
However, she added, the budget will do nothing to generate those jobs.
"Without doubt the worst shock is the reduction in the top rate for stamp duty concessions on house sales from $375,000 to $326,000. The Government had promised to keep the concession in line with house price movements, instead it is going the other way, hitting the people who least can afford it.
"The Government’s move is all the more disturbing when you realise that over the border in NSW the concession is in place until $500,000, while the ACT has the second highest house prices in the country,” she said.
Lemezina said coming on top of an additional 6% slug in rates in the next financial year, and a rise in development application fees which will inevitably be passed on to the consumer, it is clear the Government is milking householders for all that they are worth.
She added that the Government had also ducked the question of when and where to build a new dam, while squeezing another $14.1 million out of consumers by raising water abstraction charges.
“HIA is concerned that proposed cuts in Public Service jobs will have a detrimental effect on the services provided by the ACT Planning and Land Authority.
"There are already unacceptable delays in the approval of quite routine development applications.
"The transfer of the Office of the Small Business Commissioner into the Chief Minister’s Department raises questions of independence and whether it can continue to effectively represent this crucial segment of the ACT economy,” she said.
Lemezina said the amalgamation of WorkCover and the Office of Fair Trading may be a cost saving to government, but small businesses want to know what is being done to streamline processes.
“Saving money on office accommodation and staff costs will do nothing to alleviate the red tape burden on small businesses in the Territory.
"Add to this a failure to increase the First Homebuyers Grant and we have a Budget that is almost totally grim news for small business and householders, failing completely to invest in a housing-led economic recovery in the ACT,” she concluded.
By Kathryn O’Meara
