The announcement that Western Australia will be returned to surplus for the first time in five years has been welcomed by the state's real estate sector, but the Real Estate Institute of Western Australia believes more could have been done to address housing affordability in Thursday's budget.
The Real Estate Institute of Western Australia has congratulated the government on bringing the state's economy back to surplus, but described the allocation of the 2019-20 Budget as "mostly uninspired".
WA Treasurer Ben Wyatt has announced Western Australia’s first surplus in five years of $553 million and a $4.1 billion reduction in state debt during his budget address on Thursday.
The budget included a targeted household stimulus package in the form of temporary changes to Keystart home loan eligibility, which will allow more Western Australians to apply for home loans.
2019-20 Budget - What they said
Despite this, REIWA President Damian Collins said the REIWA was disappointed about the lack of initiatives to address the housing affordability and aid the property sector in its recovery.
“Treasurer Ben Wyatt has considerably revised the state’s economic position, due to WA’s increased share of the GST and the surge in commodity prices," he said.
"This influx of funds should go towards reducing state taxes, particularly stamp duty, and helping first home buyers get into the market through the reintroduction of the First Home Owners Grant for established properties.
“With the coffers fuller than we could have imagined just a few years ago, now is the time for the WA Government to step up and lead not only the state but the country and remove the single greatest barrier to housing affordability, stamp duty."
The budget reforms were given a warmer welcome by the WA Housing Industry Association, with Executive Director Cath Hart "pleased" with the support given to the state's housing and construction sectors.
"The government has stepped in to curb the impact of restrictions on lending following the Banking Royal Commission," she said.
"They have also acknowledged how hard it can be to employ an apprentice in this market.
"Employers in the construction industry using a Group Training Organisation will receive a grant of $2125 per year of employment - a welcome incentive that will see more people in training."
By Sean Slatter
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