Housing Ranks Poorly in State Budget

In response to today’s budget HIA has remarked that an opportunity has been lost to assist young Tasmanians and potential first home owners by not providing a state based boost to assist first home buyers and to stimulate the economy into 2010.

HIA Regional Executive Director said “Today’s budget could have stepped up to the plate to provide a state based extension to the First Home Owners Boost to deliver a 12 month extension to the grant which has been extremely successful in bringing home ownership dreams into reality for many Tasmanians.

“Tasmanians have taken up the First Home Owner Boost in droves with the number of first home buyers entering the new home market this year moving from single digit figures to around 30 per cent, with each new home contributing to the housing stock for future generations and reducing pressure on the extremely tight rental market.

“By contrast the Victorian government has shown vision and leadership by offering a significant boost for first home owners amounting to $36 500”, said Mr Clues. 

The budget papers specifically acknowledge the absence of a boost stimulus option for first home buyers placing downward pressure on dwelling construction in Tasmania .

“The absence of any significant housing measures in this budget will have a detrimental effect on the economic recovery of Tasmania and the 20,000 Tasmanians engaged in the construction industry.

“The State Government needs to acknowledge that the provision of housing is as important to the welfare of Tasmanians as health and education.

“A positive outcome is the ongoing funding for structural planning reform which is vital to provide regional planning instruments, statewide standardised planning schedules and to consolidate Land Use Planning and the RPDC to create a greater resource base to carry out these desperately needed reforms.

“Despite future budgeted cuts, funding for planning reform is set to continue beyond the next election which provides added confidence that fundamental reform to Planning Directive No.1 and for standardised planning schedules will be introduced within this budgetary period and more importantly within this current parliamentary term.

“The budget outlines funding for Regional planning coming to an end in twelve months time and achieving this regional planing scheme consistency within these timeframes is to be commended.

“Despite this being an election budget, it is fair to say that there are no surprises and really this is really a document that cuts back in expenses with no real emphasis on stimulating one of the states biggest industry sectors; construction.

“ 1 January 2010 presents new challenges for home ownership with the end of the Federal First Home Owners Boost, the introduction of 5 star energy regulation on this date and an uncertain economy, all of which will contribute to make the first quarter of 2010 a challenging time for the industry.

“HIA will be making representations to have these matters addressed in the lead up to the election,” said Mr Clues.