Minister Barr: HIA Report confirms positive impact of ACT tax reform
- Written by ACT Government
Released 21/02/2018
A national Housing Industry Association (HIA) report has confirmed that, in its first stages, the ACT Government’s nation-leading tax reform program is “having the anticipated positive impact on the economy.”
The report also confirms that the reform “is likely to have supported elevated levels of residential construction” seeing more new homes added to our city’s housing supply per capita than any other eastern Australian state.
The ACT Government is the first state or territory government in the country to tackle these reforms – fully abolishing or reducing our reliance on inefficient taxes like stamp duty, insurance tax and payroll tax. These reforms have been recommended by almost every economist in the country.
We have already made significant strides – we have fully abolished all insurance taxes in the ACT, and we have increased the payroll tax threshold to $2 million – the highest threshold for businesses in the country.
Our reforms have been calibrated to deliver the most support to the more affordable end of the housing market first – as the HIA has acknowledged. The report notes: “lower-value homes (under $300,000) are the cohort that has experienced material stamp duty reductions, while the increases in general rates for these lower-value homes has been relatively modest.”
We have already cut stamp duty for eligible first home buyers and pensioners looking to downsize – saving these buyers tens of thousands of dollars. Just last week, I raised a proposal to take this further by abolishing stamp duty completely for all first home buyers.
The HIA report states that the greatest risk now facing the ACT’s market is the possibility that the reform agenda is abandoned before stamp duty is fully abolished. I have been clear that I will reduce stamp duty in every Budget I deliver as Treasurer, and that’s what Canberrans will see in the 2018 ACT Budget.
- Statement ends -
Section: Andrew Barr, MLA | Media Releases
