Sydney Morning Herald: Stop the incentives for first home purchases?
Sydney Today, April 4, Australia Eastern Time, according to the real estate department, the policy of providing incentives for first home buyers buying new houses should be terminated, and new measures should be used to improve the ability of all first home buyers to buy houses.
In the budget submitted to the state government, the Real Estate Institute of Victoria believes that the $1.3 incentive for first home buyers who buy new homes in the urban area and the $1.95 incentive for locals have achieved the purpose of this policy. Up. The Baillieu government provides an additional AU$7000 incentive for approved first-time home buyers until June 6, and it is unknown whether it will continue after that.
An official spokesperson said that the decision (whether to continue to provide incentives) will be announced in the state government’s budget report on May 5. "The Victorian Coalition Government is working to provide concessions for first home buyers. By September 1, The stamp duty for first home buyers will be reduced by 2014%. In addition, in this budget year, we will spend 9 billion Australian dollars to support first home buyers."
Enzo Raimondo, chairman of REIV, said that the purpose of this incentive program has been achieved. The funds should be used to support all first home buyers, not just to encourage first home buyers to buy new houses.
Tony De Domenico, chairman of Urban Development Institute Victorian, believes that it is unwise to abandon this incentive policy in the current economic environment. He said that the real estate industry in Victoria provides about 31000 full-time jobs, contributes 12% to the state's GDP, and pays 46 billion Australian dollars in taxes each year.
Mr De Domenico said: "It is important to restore people's confidence in real estate as soon as possible, especially through interest rates to increase people's purchasing power and help people below the poverty line." The Housing Industry Association also opposes the policy of reducing incentives.
The Real Estate Institute’s opinion is that stamp duty is widely regarded as an inefficient means, but it is one of the few sources of government revenue. The stamp duty should be abolished and replaced with more advanced measures based on federal government taxation. But before such a new policy is introduced, the state government should take measures to prevent the increase in housing prices, which leads to an increase in stamp duty. This can be achieved through rate indexation, ensuring that the stamp duty rate paid by people does not exceed 4% of the average house price. (Ivy)