Home-buyers could be incentivised to buy newly-constructed homes under a proposed scheme by the Property Council of Australia, which could see them pocket a whopping $50,000 for doing so.
In its seven-point plan for economic recovery after coronavirus, the Property Council stated the ‘New Home Boost’ scheme would kickstart construction for new housing, generate jobs and boost consumer confidence.
The Property Council proposed 50,000 new dwellings be built, supporting more than 200,000 jobs by bringing forward market demand for new housing.
State and territory governments would also come to the table and initiate additional demand stimulus through first home buyer grants, stamp duty and foreign investor surcharge relief, the Council stated.
“Housing construction risks being a drag on economic recovery, not a driver of it,” the Council stated.
“While industry, governments and workers have ensured that current construction projects have continued, the pipeline beyond this is dwindling alarmingly.”
The Council said real demand for new housing construction was set to “fall off a cliff” amid economic uncertainty, the leap in unemployment and population declines.
“Creating new homes, apartments and retirement living units together constitute one of the most powerful job keepers and job multipliers in the Australian economy,” it stated.
The proposed scheme would require around $2.5 billion of government funding, and would be limited to the first 50,000 purchases.
It would require commencement between 1 July 2020 and 30 June 2021, with a view to review the scheme on 1 December this year.
Other initiatives proposed was a broad-based tax reform to enhance productivity and increase living standards, including the abolition of stamp duty, and improved housing affordability through strategically rezoning and servicing land.
The plan follows the NSW government’s push to abolish stamp duty and payroll tax, which has been supported by the opposition.
NSW Treasurer Dominic Perrotet told Nine that as the coronavirus pandemic has significantly impacted the economy, stamp duty was at the top of his hit list.