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Should they hold onto power at the upcoming election, how does the reigning Liberal party intend to move on housing?
With the campaign trail drawing to a close and the state prepared to head to the polls this Saturday, 25 March, REB has taken a look at the property policies of each of the major parties.
You can view Chris Minns’ Labor Party policies here.
Current state Premier, Dominic Perrottet, has enacted several significant housing policies since assuming the role at the back end of 2021 as part of his government’s $2.8 billion pledge to the sector in the 2022–23 state budget.
Arguably, the member for Hawkesbury’s most significant act during his tenure as the state’s top politician is the passing of legislation in November 2022 which removed the necessity of stamp duty in the property purchasing process and afforded certain buyers the right to opt into an annual land tax instead.
Earmarked as “historic”, NSW’s stamp duty reforms, which came into effect earlier this year, could impact up to 80 per cent of the state’s property sales by allowing prospective first home buyers to ditch stamp duty for a small annual fee “on properties purchased up to $1.5 million”, while offering “a full stamp duty exemption offered to properties up to $650,000 or a concession on properties between $650,000 and $800,000”.
Last month, Mr Perrottet promised to expand the reforms should he win re-election to allow individuals purchasing their second and third properties, removing potential penalties for families opting to move homes.
Additionally, the $1.5 million cap for first home buyers wanting to opt into land tax will rise $50,000 each year beginning the financial year of 2023–24.
The Liberal Party’s “signature election policy”, announced at its official campaign launch on 12 March, also has future ramifications for the state’s housing market. A Kids Future Fund for every child under 10 in NSW could be established if Mr Perrottet remains premier beyond this election date. The premise of this promise would see each child set up with a savings account containing $400, with parental annual contributions capped at $1,000 (up to $400 will be matched by the government).
Billed as a “down payment to secure the future dreams of our children”, government modelling suggests children could potentially access between $28,000 and $49,000 once their 18th birthday arrives, funds which can only be utilised to cover either education-related expenses or purchasing a property.
Beyond the party’s two dominant housing policies, the state’s Liberal party has enacted a number of property initiatives over the course of the last year.
The Perrottet-led government unveiled a shared equity scheme — promised in the state budget — which sees the party “contribute an equity share of up to 40 per cent for a new property or up to 30 per cent for an existing property purchased by eligible buyers”.
Initially offered to first home buyers described as key workers by the government, such as nurses, teachers, and police officers, as well as singles over 50 and single parents with children under 18, the program was expanded in early January to include paramedics and early childhood educators.
Moreover, in relief for prospective tenants across the state, the Liberal party motioned a ban on rent bidding in the final month of 2022, preventing agents from “inducing a prospective tenant to offer an amount higher than that advertised for the property,” as outlined by the Minister for Fair Trading, Victor Dominello.
On the supply side of industry, which has dominated much of the property discourse in the last 12 months, the Perrottet government acted on a $300 million plan aimed at fast-tracking housing supply. This has seen eligible councils invited to apply for funding from the Accelerated Infrastructure Fund with the goal of unlocking and increasing land supply.
Back in December, the Liberal party also yanked the lever on the $73.5 million Rezoning Pathways Program to facilitate 10 land rezonings and establish the foundation for thousands of new homes across the state.
To read about the NSW Labor Party policies, click here.
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