Stamp duty extension a vital boost

28 December 2009

Todays extension by the NSW Government of its stamp duty concession for newly built homes will be another shot-in-the-arm for the struggling home construction sector, according to the Urban Taskforce.

The Taskforces chief executive, Aaron Gadiel, said the stamp duty concessions had boosted confidence in NSW and led many developers to push for pending approvals to be finalised.


This stamp duty concession has made it easier for developers to secure pre-sales and, for some projects, it has helped improve developers access to bank finance. The schemes extension is a vital boost to home construction and will help get our faltering housing supply back on track.


Under the Housing Construction Acceleration Program, launched on 1 July this year, purchasers of newly constructed homes, other than first home buyers, only pay half the normal stamp duty on homes of up to $600,000 in value. The scheme was due to end on Thursday (31 December 2009), but the Premier of NSW, Kristina Keneally, today announced its extension for another six months, until 30 June 2010.


Mr Gadiel said the economic boost delivered by the scheme was massive, compared with its modest cost.


It has only cost the government $14.8 million in lost stamp duty revenue, but its stimulated more than $850 million worth of job-supporting construction activity, he said.


The livelihoods of ordinary builders, plumbers, electricians and construction workers are more secure – thanks to this scheme.


The governments decision to extend this scheme is good news to both construction industry workers and the purchasers of newly built homes.


The NSW home construction industry is growing again – but more support is still required.


In the September quarter NSW and South Australia both saw a 3 per cent growth, compared to 8 per cent in Victoria, 22 per cent in Queensland, 14 per cent in Western Australia, 5 percent in Tasmania and 9 percent nationally.


The Urban Taskforce is a property development industry group, representing Australias most prominent property developers and equity financiers. The construction activity made possible by property developers contributes $78 billion to the national economy



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