While Minns said the initiative will make housing more affordable,Treasurer Matt Kean said the policy would fail to reach thousands of first home buyers in suburbs where the median house price surpasses $1 million.
“If you’re purchasing your first home,for a median priced property in Marsden Park,[Sutherland,Camden,Oran Park],you get no benefit under Chris Minns and Labor’s policy,” Kean said on Monday.
Pointing to Domain’s September quarterly report,Kean said the median house price in Marsden Park was $1.15 million,which would attract stamp duty of $47,450;and Bankstown,where the median house price of $1.12 million would attract $45,800 in stamp duty.
Kean argued that Labor’s plan would force first home buyers “into properties they may not necessarily want”,like apartments,not houses. However,the government has repeatedly insisted its land tax policy is not designed for people seeking their “forever home”.
Labor says modelling by the parliamentary budget office shows 95 per cent of all first home buyers will pay no tax or a reduced rate in the first three years,while Kean said the government’s policy will leave 97 per cent of first home buyers better off.
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However,economic policy director at Grattan Institute Brendan Coates said,in reality,neither policy would have a meaningful impact on housing affordability or homeownership.
“By putting more money in the hands of buyers,you see[property] prices rise ... offsetting the stamp duty concession,” Coates said.
“Both are basically first home buyers’ grants by another name. These are very modest policies,and both parties are looking to sharpen the edges between them. It must be election season.”
Labor has also promised to introduce a mandatory requirement for 30 per cent of all homes built on surplus government land to be set aside for social,affordable and universal housing.
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The state’s housing register waitlist increased to 51,031 last year,while the number of priority applicants – those at imminent risk of homelessness – increased by 12 per cent in just one year.
Labor housing and homelessness spokeswoman Rose Jackson said the plan to create the Homes NSW agency would end “buckpassing” between agencies.
“The current split structure is ineffective,expensive and dysfunctional. Tenants and those who support them regularly find themselves bouncing between departments and falling through cracks.”
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