Our Aussie dream crisis

Simon Hampel · 21st Jan, 2010

AdelaideNow... Our Aussie dream crisis

THE rising median house price has outstripped wage increases in the past decade, prompting calls for an urgent reform of the state's housing policies and taxes.

The Housing Industry Association SA yesterday released its election wish list exclusively to The Advertiser , warning the state's housing affordability had reached "crisis levels".

Big ticket items include an abolition of land tax on properties below the median value, providing they are offered for rent within the private market, and stamp duty exemptions for first-home buyers on properties up to the median new house price.

Figures presented in the policy show the median house price has risen 219 per cent in the past 10 years from $122,300 in 2000 to $390,125 in 2009, but the average adult wage has only increased 45 per cent.

Regional director Robert Harding said issues around planning, property taxes and a skills shortage posed the greatest challenges for the industry.

If not addressed, they could lock about 30,000 people out of the market by 2030.

"Everyone talks about the housing crisis and the effect that that has on those who are locked out of residential housing, but basically no political party so far has been prepared to tackle the problem head on," he said.

"If these issues aren't addressed we will have a significant proportion of the population who will never have an opportunity to own their own home."

The HIA also is calling for:

A TIME limit for land rezoning and development approvals.

A 50 PER CENT exemption for developers on land tax levied on subdivided land stock holdings, provided they demonstrate a strategy to release land in a timely fashion.

INCENTIVES of an additional $2000 per year for both apprentices and employers of apprentices to attract more skills to the workforce.

$75 MILLION to be injected over three years into a trades training reform and improved targeting through state-sponsored migration.

PROTECTION for independent contractors.

Mr Harding said governments in the past had taken housing seriously, but property was an easy target for raising state revenue.

"They (governments) don't see it as something that's going to win or lose them office and it's an easy way of raising revenue rather than coming to grips with the whole taxation issue," he said.
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Our Aussie dream crisis

Simon Hampel Founder Staff Member

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Our Aussie dream crisis

Simon Hampel Founder Staff Member

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