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Committee endorses Labor's affordable housing actions

Released 24/06/2008

The Senate Select Committee on Housing Affordability in Australia’s Report, which was released last week, endorsed a number of initiatives that the ACT Government is delivering through its leading Affordable Housing Action Plan – initiatives which will deliver affordable housing for all Canberrans, Chief Minister Jon Stanhope said today.

“It is pleasing to see the Senate Committee recognise the significant initiatives undertaken by the ACT Labor Government through our Affordable Housing Action Plan, released over a year ago,” Mr Stanhope said.

“The Senate Committee looked at housing affordability issues with a particular emphasis on barriers to home ownership in the nation. It is pleasing to see that a number of its recommendations are initiatives in which the ACT Government is leading the nation.

“The Committee recommends that other states follow the ACT’s lead and provide duty exemptions for retirees downsizing their homes.

“From 1 July, eligible pensioners in the ACT who are wanting to downsize their homes and move to more suitable accommodation, up to the median house price, will only have to pay the concessional stamp duty rate of $20. This will encourage older Canberrans to move to housing more appropriate to their needs.

“Initiatives to ensure that new developments have a diversity of housing types, such as the ACT Government’s requirement that at least 15 per cent of all greenfield developments be made available for housing under $300,000, are also specifically acknowledged by the Senate Committee in its Report.

“The importance of community housing is also stressed by the Senate Committee and through the ACT Government’s Affordable Housing Action Plan we have established a $50 million finance facility which will enable Community Housing Canberra to continue to build and house Canberra families on lower incomes.

“The Committee also recognises that the ACT Government has reduced the upfront impact of stamp duty on first-home buyers by allowing first-home buyers to defer the duty for up to five years. Through this initiative, first-home buyers can get their foot in the door, without having to worry about the payment of their duty until five years down the track.

“The Committee also recommends that state and territory governments consider stamp duty exemptions for first home buyers. The ACT Government does this through the Home Buyer Concession Scheme.

“The ACT’s first-home buyer concession is carefully targeted at moderate-income households looking to purchase their first home up to the median price.

“The ACT Government believes that stamp duty relief is most meaningful for moderate-income first-home buyers, which is why under this initiative homes up to $310,000 are already exempt from stamp duty, with homes up to $390,000 subject to a concessional fee.

“The ACT Labor Government’s Affordable Housing Action Plan addresses issues of housing affordability right across the spectrum – for homebuyers and for renters, for those in community housing and those in public housing – with elements of our comprehensive strategy already being picked up by other jurisdictions in Australia and even being looked at internationally.”

Since its introduction in April 2007, through the Affordable Housing Action Plan, the ACT Government has:

· increased the supply of land by an additional 1000 blocks to a total of 3,200 this financial year;

· adopted a rolling five-year land release program;

· streamlined land release and approval processes, and introduced englobo land releases;

· mandated the delivery of house and land packages priced between $200,000 and $300,000;

· provided more generous concessions, to help more Canberrans buy a home;

· introduced the land rent provision to enable more low-income families to purchase their own home;

· invited institutional investors to provide affordable private rental accommodation;

· boosted community housing with an equity injection of $40 million and a loan facility of $50 million;

· ensured that better and more targeted use is made of public housing - 87 per cent of new allocations are made to applicants in urgent need of housing compared with just over 38 per cent nationally;

· implemented measures to improve the energy efficiency of the public housing stock to reduce energy costs for public housing tenants;

· released two demonstration projects to showcase affordable land and housing packages; and

· funded a design award for excellence in affordable housing.

Statement Ends

Media Contact: Penelope Layland 6205 9777 0438 289 714 penelope.layland@act.gov.au

Jess Wurf 6205 0504 0411 772 700 jess.wurf@act.gov.au