Good news budgets in Tasmania and the Top End  

A number of announcements handed down in the Tasmanian and Northern Territory budgets last week are good for jobs, growth and building strong local property industries.

In Tasmania, funding for a range of projects will stimulate the state’s economy, including $1.8 billion in infrastructure projects.

The Property Council’s executive director in Tasmania, Brian Wightman, says doubling the First Home Builders Grant, $113 million investment in schools and an additional $60 million for the Affordable Housing Strategy should “provide the project pipeline that Tasmanian businesses are looking for”.

Wightman says the First Home Builders Grant has the potential to drive population growth, and that the Hodgman Government should also consider stamp duty relief to encourage young people to move to Tasmania.

The $90 million allocation to support the University of Tasmania’s northern expansion to Inveresk and Burnie, and the Devonport Living City Project, are “game changers” for the state, Wightman adds.

The $400,000 allocated to support the essential work of the Planning Reform Taskforce is also good news for the state.

“The leadership provided to reduce more than 30 planning schemes into one should be complemented by local government reform.

“Sydney, with a population of five million people, now has 25 councils. In Tasmania, we have 29 councils for 516,000 people. That fact is plainly ridiculous and requires tough leadership to resolve.”

Meanwhile, the Northern Territory’s budget provides stability and economic surety, says Property Council executive director in the Top End, Ruth Palmer.

“This Budget, which has a near-record $1.7 billion in infrastructure expenditure, enables members to plan and build their businesses on the back of a stable and growing economy,” she says.

Palmer says removing stamp duty for first home buyers is a “good compromise” that will stimulate the residential market without the inflationary risks associated with grants. The Property Council has long-argued for this measure.

There will be a per cent stamp duty discount for first-home buyers of established homes, valued up to $4,000 and capped at $10,000 thereafter.

“The discount will make housing more affordable for first home buyers and increase economic activity in the property sector,” Palmer says, adding that the concession will apply until 30 June 2017 and will be reviewed in the second quarter of 2017 to determine if it should be extended.

For homes valued above $4,000, first-home buyers will be entitled to the maximum stamp duty discount of $10,000.

“First-home buyer assistance for the purchase of new homes remains in place, with a significant grant available of $26,000.

“And the $2000 home improvement voucher for owner-occupiers will push much-needed work to local tradesmen,” she concludes.