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{{propApi.successMessage}} {{region}} Change locationInvestment in addressing supply side barriers to housing in NSW budget a positive step says HIA
Investment in addressing supply side barriers to housing in NSW budget a positive step says HIA
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“HIA has long been advocating for a greater focus on addressing supply side constraints for new housing.
“The announcement to invest in a financing guarantee pilot is welcomed,” Mr Bare said.
“Derisking investment could see faster delivery of new dwellings. There is little detail on the approach to be adopted in the pilot however, nor what type of development will be the focus and the financial instruments to be adopted.
“Options such as the NSW Government acting as a finance guarantor, pre-purchasing homes off the plan and providing financial support for materials supply have been floated.
“At odds with identifying access to finance as a barrier to supply is the ridiculous decision to increase foreign purchaser duty surcharge to 9 per cent and the foreign owner land tax surcharge to 5 per cent from 1 January 2025.
“While each increase is an additional 1 per cent these punitive taxes send the message that NSW is shutting the door on overseas investment to support housing supply,” Mr Bare said.
“HIA calls on Treasurer Mookhey to remove these taxes and encourage overseas investment to support housing supply.
“An additional $253.7 million to pay for planners and technology to speed up development approvals is positive.
“A further announcement is that the NSW Productivity Commissioner is to deliver recommendations to address barriers to housing supply by the end of August this year.
“HIA has previously proposed that Commissioner Achterstraat look at construction industry capacity and constraints, and it appears that this may be part of the proposed review.
“HIA looks forward to working with the NSW Government on the detail of the proposed financing guarantee pilot and Commissioner Achterstraat’s review,” Mr Bare concluded.
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