Downsizing gets housing focus amid election promises
Housing announcements defined Labor’s first weekend of formal election campaigning, on the heels of the Liberal Party’s own incentive payment plan for downsizers moving out of big family homes.
The abolition of stamp duty for South Australian downsizers and a $1 billion homebuilding plan were cornerstone pre-election pledges from SA Labor, as the party formally launched its state election campaign at the Adelaide Convention Centre on Sunday.
It follows the Liberal Party launching a similar policy announcement earlier this year that would see downsizers being given a one-off stamp duty concession of $15,000 on their next home purchase.
Housing construction has emerged as a key focus for Labor as it seeks to address an ongoing housing crisis, with Premier Peter Malinauskas saying, “When the market cannot provide the right outcome, that’s when government has to step in”.
On Sunday morning, Labor announced its plan to abolish stamp duty for downsizers buying new homes.
The policy would apply to those aged over 60 on buying a smaller, newly-built home or off-the-plan apartment worth up to $2 million. Labor said this could save them up to $103,830.
The Liberal policy is a stamp duty discount of $15,000 for the purchase of any property valued up to $1.2 million – not just newly built homes.
Shadow Treasurer Ben Hood said his party’s policy was different from Labor’s as that “only works if people sign up to a new build”.
You might like
“They (downsizers) take the construction risk and they wait years for the benefit,” he said this morning on ABC Radio.
“We’ve been speaking to people who work directly with downsizers, and what they’re telling us is that most downsizers aren’t moving into off-the-plan apartments, they’re rightly buying in established smaller homes, townhouses or units in existing suburbs.
“Labor has spoken about downsizers being able to save hundreds of thousands of dollars, that means they’d be needing to buy a $2 million house and selling a more expensive house after that. Our question is, how many first home buyers are actually getting into the market at a property that’s worth over $2 million?”
But Treasurer Tom Koutsantonis said his party’s policy was “an opportunity for us to add to supply”.
“Often the incentive to move is not there because of the transactional cost of moving,” he said.
“What we’re thinking is if we can free up some of those homes per year, and we are able to get people into a new build, we can incentivise supply rather than exacerbating demand.”
At the party’s official campaign launch yesterday, Labor also announced a $1 billion plan to build more homes in SA, including a $500 million fund to purchase strategic land holdings that can be fast-tracked for residential housing developments.
The party said it would be a “perpetual fund”; when land bought through the fund is on-sold, the proceeds will be returned for future purchases.
Stay informed, daily
Labor said sites under consideration for the ‘Housing Fast-Track Fund’ include the Hampstead and Warradale barracks, which the Federal Government intends to sell.
The other half of the fund will be for an ‘Apartment Fast-Track Fund’ to unlock more apartment developments in the CBD.
This will see a re-elected Labor government be the guarantor on up to 50 per cent of dwellings in eligible off-the-plan developments, up to a cap of $30 million per project.
Labor hoped this would incentivise faster delivery of homes in the city, with the policy targeted at shovel-ready developments.
The party also announced SA developer Commercial & General would deliver more than 1000 homes at Adelaide’s newest inner-suburban housing development: Southwark Grounds.
The developer will work with Renewal SA on adaptive reuse of the historic Walkerville Brew Tower, which will anchor the precinct’s public space, and build an 80-space short-stay public car park.
Howard-era Minister tapped to lead Lib tax commission
The state Liberal party announced Nick Minchin, former Federal Finance Minister under former Prime Minister John Howard, would head its State Charges and Tax Reform Commission if the party was elected in March.
The commission would be established within the first 60 days of an elected Hurn Liberal Government to deliver a roadmap for tax, levy, fee and charge system reform.
“Mr Minchin is a respected voice in the finance sector and has an extraordinary understanding of the tax system right across our nation, and well placed to spearhead the commission,” SA Liberal leader Ashton Hurn said.
“Cost of living pressures are squeezing families and businesses across the state – and my team and I are laser focused on making South Australia more affordable.
“While we want to chart a path for long-term reform with a view to lower taxes, the Liberals will also provide immediate relief through reforms to Stamp Duty and Payroll Tax if elected in March.”
Minchin said tax reform had the power to “unlock economies and take the handbrake off business”.
“I am looking forward to chairing the State Charges and Tax Reform Commission under an elected Hurn Liberal Government, to do just that,” he said.
