Skills infrastructure business are budget winners

The Housing Industry Association believes today's Victorian Budget will ease the burden on small business and goes a long way to addressing skill shortages and infrastructure development, Victorian Executive Director Graham Wolfe said today.

"However the government's failure to move on stamp duty concessions for first home buyers means this important sector of the market has been left out in the cold," he said.

"This is especially disappointing in the light of the latest figures for house and unit approvals, which show an 18.4 per cent fall in Victoria ."

Mr Wolfe hailed the attention paid skills, including $33 million to promote pre-apprenticeships, an additional 4500 pre-apprenticeship places in training institutions, and $36 million for a new "trades bonus".

"The trades bonus, whereby apprentices will receive $250 at the completion of the first half of their first year and another $250 at the end of it will be a strong incentive to keep young people involved at a time when they are confronted with other distractions," he said.

"HIA is also pleased with the $241 million set aside to support the Government's Skills Statement."

The proposal to spend $12.6 billion over the next four years on the state's infrastructure is welcome, as are plans to create a more competitive business environment by reducing workers compensation payments by 10 per cent, payroll tax by five percent and reducing the top rate of land tax from five per cent to 3.5 per cent.

"However, housing affordability remains a serious concern and no solace has been provided to struggling first home buyers," he said. "The removal of stamp duty for first home buyers payable on a home of $320,000 or less, a value lower than the median price of a home in Melbourne, would have provided a significant boost to budding first home buyers.

"Retention of the First Home Bonus to supplement the Federal First Home owners Grant, together with stamp duty relief, could have saved more than five per cent of the total cost of a home. There would also have been a significant boost to the state's economy by way of more than $400 million worth of additional residential construction, demand for more than $140 million worth of housing related products and services and the generation of more than 750 new jobs.

"This neglect of young people struggling to get into the housing market is now set to be an issue at the next state election."