New home builders could be incentivised with a massive $50,000 handout under a proposed plan by the Property Council of Australia.
The plan involves seven key points which includes the handout and scrapping stamp duty to kickstart construction, generate jobs and boost consumer confidence.
Stamp duty often adds up as a significant cost when purchasing property and can act as a deterrent.
Chief Executive of the Property Council of Australia Ken Morrison said bold thinking was required to get the Australian economy moving after the impact of COVID-19.
“As Australia’s biggest employer which contributes over 13 per cent of GDP, the property industry can be a powerhouse behind economic recovery and growth with the right policy settings and market incentives from the federal, state and territory governments,” he said.
The Property Council’s seven-point plan
- $50,000 ‘New Home Boost scheme to bring forward demand for new housing, with the potential to stimulate 50,000 new dwellings and support 200,000 jobs.
- Broad-based tax reform that includes the abolition of stamp duty and replacement of this revenue by broadening the GST base in the medium term; retaining existing negative gearing and capital gains tax settings; targeted tax relief and no increases to existing taxes and charges for 12 months; and removal of foreign tax surcharges to encourage international investment.
- Improved housing affordability through the improvement of planning systems by efficiently and strategically rezoning and servicing land.
- A ‘Welcome to Australia’ migration plan to drive growth.
- The full report can be found here.
The new proposed scheme would require around $2.5 billion of government funding and would be granted to the first 50,000 purchases with no pricing cap, with the aim to bring forward all possible market demand and stimulate the greatest economic response possible.
The Property Council said it would require commencement between 1 July 2020 and 30 June 2021, with a plan to review the scheme on 1 December, 2020.