The recent NSW state election saw the Australian Labor Party win at the polls for the first time in 12 years. A new government means new policies, particularly for housing, which emerged as a key battleground during the campaign.
NSW Labor’s election platform centred on making housing more affordable by:
In this article, we’ll look at these four policy areas in more detail. Please keep in mind that these policies are just proposals at the moment; they haven’t been implemented yet.
Stamp duty reform
Under the previous government, eligible first home buyers paid no stamp duty when buying property valued up to $650,000, with discounts available for properties up to $800,000.
Labor has promised to scrap stamp duty entirely for first home buyers on homes worth up to $800,000 while introducing concessions on homes worth up to $1 million.
These price bracket changes should see 95% of all first home buyers pay no tax or a reduced rate on their home purchase, according to independent modelling by the Parliamentary Budget Office.
Labour plans to pay for this stamp duty reform by scrapping the previous government’s First Home Buyer Choice scheme.
This scheme, which only became law in November 2022, lets first home buyers choose between paying an annual property tax or upfront stamp duty when buying homes valued up to $1.5 million.
First home buyers who opt in to the property tax before the First Home Buyer Choice is repealed will continue to pay the annual tax while they own the home.
Housing supply
Much like any other market, the property market largely conforms to the law of supply and demand. This means, generally speaking, that when demand outweighs supply, property prices rise; and when supply outweighs demand, prices fall.
The problem is, housing supply in NSW hasn’t kept up with population growth, resulting in a chronic undersupply. Labor wants to fix this by:
Rental reform
The Labor government plans to appoint a rental commissioner, who will be tasked with making renting fairer and more affordable. As part of this, the rental commissioner will identify:
The rental commissioner will also oversee a ban on secret rent bidding, which is when prospective tenants are encouraged to offer a rental price higher than advertised to beat their competition. Under Labor’s plans, any offers made over the listed price will be disclosed to other applicants, who may then choose to make a counteroffer of their own.
Labor also promised to introduce a bond-portability scheme, which will make it possible for renters to transfer a bond from one property to the next while still making sure that owners can access any funds they may need.
NSW tenants should also find it easier to have a pet, thanks to a new streamlined application process that requires owners to have a reason to refuse a pet. Tenants will also receive automatic approval if the landlord hasn’t responded to their application within 21 days.
Regional rental supply
Finally, Labor is planning to spend $30 million for a pilot ‘Build to Rent’ program in the South Coast region, with 30% of properties allocated for social, affordable and universal housing. These rental properties will be managed by a government agency, with any profits reinvested into social housing.
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