Statutes Amendment (Budget Measures) Bill – Second Reading speech
Tuesday 12 September 2023
S.E. ANDREWS (Gibson) (12:43): I rise to speak on the Statutes Amendment (Budget Measures) Bill 2023. This Malinauskas Labor government is tackling the housing crisis on multiple fronts. We are doing this through releasing land, constructing new public housing properties, rental reforms and through the measures in this bill to make it easier for South Australians to enter the housing market. We have wasted no time in supporting those who are ready to make the transition from renting to owning their own property.
This bill implements the government's changes to stamp duty for first-home buyers. The 2023-24 state budget abolishes stamp duty for first-home buyers who purchase a new home valued at up to $650,000 or vacant land valued at up to $400,000 to build a new home. Most first-home buyers should be able to find a property that meets their needs within this threshold, even with the price rises that we have seen in recent times.
The abolition of stamp duty for singles, couples and families will see a saving of up to almost $30,000 for new homebuyers, which takes the pressure off saving that additional amount for your home deposit. Whilst this is good news for our state, it is only the beginning. This bill also amends the First Home and Housing Construction Grants Act 2000 to extend the First Home Owner Grant and increases its property value cap from $575,000 to $650,000. The First Home Owner Grant is available to eligible first-home buyers who build or buy a new home.
Increasing the property value cap by $75,000 reflects the significant increase in land and building costs that I mentioned earlier and more closely aligns the grant with Adelaide's median house price of $675,000. The grant is another $15,000 that buyers do not have to pay, so we are now at a total saving of $44,580 which, compared with the annual median earnings in South Australia of $58,500, is a significant saving for first-home buyers.
It is estimated the measures will benefit 3,800 first-home buyers a year, and by abolishing stamp duty for new builds only and not increasing demand for existing homes this government is encouraging the supply of new housing with the intention of also taking the pressure off our tight rental market. Encouraging new house builds is expected to provide important support to the building industry, which has started to slow as the COVID stimulus spike subsides and ever-high interest rates slow demand.
We have seen devastation and heartbreak across the nation as construction companies have collapsed. We want a strong construction industry in South Australia where tradespeople can work and young families can move into new homes. We have received good news in South Australia, as we bucked the national trend for new home sales, recording a 35½ per cent increase in July while other states fell by between 0.6 and 11.6 per cent.
The good news continues in this bill, with the Labor government delivering a low deposit home loan scheme for first-home buyers building a new home. The new first-home buyer construction option will allow first-home buyers to borrow to construct their first home with just a 2 per cent deposit, improving on our initial election commitment of 3 per cent—overdelivering because we know it is tough in our community. Two per cent could be as low as $10,000 on a $500,000 loan, compared with the usual 20 per cent or $100,000, so that is another saving of $90,000 for a total up-front saving of $134,580.
The lending criteria will align with the existing Graduate Loan requirements, with the commencement date of 1 July 2024. Unlike some commercial lenders, HomeStart does not require borrowers to take out Lenders Mortgage Insurance, another saving that can sometimes add up to $10,000 to the cost of purchasing a home.
These new homes that we are building will be right across the metropolitan area. In the north, there will be 10,000 homes at Dry Creek, 10,000 at Concordia and 500 at Golden Grove. However, those lucky enough to live in the best part of Adelaide, in the south, between the sea and the Hills, will see 2,000 homes at Onkaparinga Heights, 1,700 at Sellicks Beach, 800 at Aldinga and 600 at Noarlunga Downs. This will be in addition to the large-scale construction currently underway at Gawler, Mount Barker, Seaford Heights, Two Wells, and in the City of Playford, plus the infill development across metropolitan Adelaide.
This bill provides for a reduction in taxable value for certain build-to-rent properties by 50 per cent: the building must be situated on the land, construction of the building is commenced on or after 1 July 2023, the commissioner is satisfied the building is being used for a build-to-rent property, and the owner applies for the reduction.
Additionally, the building, and the use of the building as a build-to-rent property, must comply with all requirements applicable under the Planning, Development and Infrastructure Act 2016, and, importantly, each tenant of the build-to-rent dwellings or units in the property is offered on a genuine basis a lease with a term of not less than three years.
In addition to this, we are delivering the first substantial increase in public housing in a generation, building an additional 564 public homes and stopping the sale of 580 others. There are new homes being constructed in Gibson across Brighton, Marion and Seacombe Gardens and we are delivering 700 additional affordable homes under the National Housing Accord. We are developing 111-129 Franklin Street in the city to deliver more than 130 social and affordable apartments; delivering targeted reforms to rental laws, including a ban on rent bidding; and delivering new key worker housing through a new Office for Regional Housing in Renewal SA.
Additionally, we are extending the Aspire homelessness program, which provides intensive case management for people who have experienced recurrent homelessness or are at risk of returning to homelessness. This is in addition to our broader support for homelessness provided by this Labor government.
I would also like to briefly mention a recent initiative held at the SA Aquatic Centre, where for one night last month they provided warm beds, free haircuts, health support, clothing and food for our local homeless community. It might have been a one-off event, but it certainly helped people in our community experiencing homelessness to connect with services on an ongoing basis.
Of course, there is the wonderful work at St Jude's Church—instigated by Paul, who is currently in the running for a Westfield Star award—where they provide a community meal every Friday lunch to anyone in our community who would like a free meal. It is three courses and an impressive serving and, importantly, it is also an opportunity to connect and chat with people. It is not about the photos and it is not about the socials; it is about being in our community and serving those who need it most. I commend the bill to the house.
