Buswell plan will push up prices even further

18/8/06
Troy Buswell's plan to push up Perth property prices even further will do nothing to help first homebuyers, Treasurer Eric Ripper said today.
"In an environment where demand already exceeds supply, policy measures which increase demand, such as stamp duty cuts, will result in further price rises," Mr Ripper said.
"The State Government is not opposed to further stamp duty cuts. In fact, since 2004, we have cut stamp duty by 15 per cent and introduced stamp duty exemptions for first homebuyers.
"But we must get the timing right for any further cuts. It makes no sense to cut stamp duty now if all it is going to do is force up property prices.
"One of the key issues we face in Perth is the delivery of land to the market and the availability of skilled labour to build houses.
"That is why the Carpenter Government has appointed a land release co-coordinator to expedite major subdivision applications and review planning conditions, which are delaying land releases.
"We have also boosted funds for training and reduced the apprenticeship times for key construction and residential construction trades to address skill shortages in the housing sector.
"Addressing these supply issues should lead to more affordable housing being built in Perth's suburbs."
Future stamp duty relief will be considered as part of Stage Two of the State Tax Review.
In the meantime, the Government will continue to spend the stamp duty it receives on infrastructure and providing better health, education and community safety services for Western Australians.
Treasurer's office - 9222 8788