This article is from the Australian Property Journal archive
THE Western Australian government has announced $444 million in housing stimulus measures, focused on the social housing sector and new home building, aiming to support about 4,300 jobs across the state and give tradies and suppliers some certainty about work pipelines during the coronavirus recovery.
Rollout is anticipated to begin immediately and the program will run for up to two years.
The $319 million social housing economic recovery package will refurbish 1,500 homes, build and purchase approximately 250 new dwellings, and deliver a regional maintenance program to 3,800 homes. About 1,700 jobs will be supported and created, with about 780 in regional WA.
As part of the plan, $97 million is allocated to build or buy about 250 dwellings comprising new social housing builds and off-the-plan purchases ready for immediate construction, accelerating the start of construction-ready projects. Some $141.7 million will go towards extensively refurbishing 1,500 existing social housing dwellings, while $80 million will go towards fast-tracking a regional maintenance program, including remote Aboriginal communities’ stock and subsidised housing for regional government workers.
Building bonus grants of $20,000 will be provided to homebuyers who register to purchase new houses or a new property in a single tier development prior to construction finishing, in a promise worth $117 million and hopes to account for 2,600 jobs.
Meanwhile, the 75% off the plan transfer duty rebate, capped at $25,000, will be expanded until the end of 2020 to the tune of $8.2 million. It will include purchases in multi-tiered developments already under construction. Off-the-plan pre-sales opportunities will be acquired through a time limited call for submissions process issued by the Department of Communities, expected to open in mid-June.
WA Premier Mark McGowan said the measure would provide a “pipeline of work for WA building companies and local tradies, like bricklayers, plumbers, carpenters and painters, as we recover from the COVID-19 pandemic”.
“WA’s residential building industry makes a significant contribution to our economy and community, so it’s important we help protect, support and create new jobs in this space.”
The state government has now committed $2.3 billion to COVID-19 stimulus and relief measures.
State Housing Minister Peter Tinley said an estimated 66,000 workers are directly employed in the residential construction sector and many thousands more rely on the industry for their livelihoods.
Social housing stock in the state’s portfolio has an estimated worth of about $14 billion.
The social housing package follows announcements in recent years of the $150 million housing investment package to build more than 500 new social or affordable homes and refurbish 70 public housing properties, and the $394 million Metronet social and affordable housing and jobs package.
REIWA said it is disappointed that the federal and state government’s building bonus schemes “missed an ideal opportunity to undertake critical tax reform”.
Damian Collins, the body’s president, said that while the scheme would create short-term jobs and help people get into homes , the remaining 99% of West Australians who won’t get to utilise the scheme are still potentially lumbered with stamp duty if they want buy a property.
“Yesterday’s state package was better than the federal scheme as it is available to more people, but it does not address the barriers to moving that many people encounter.
“Numerous studies have shown that removal of stamp duty creates significant economic activity and the benefit to the WA economy could be as much as $1 billion per annum.”
He said home sellers in the outer suburban areas will find themselves potentially at another $45,000 disadvantage compared to a new build.
