STAMP DUTIES (OFF-THE-PLAN APARTMENTS) AMENDMENT BILL

Second Reading

Second reading.

The Hon. G.E. GAGO (Minister for Agriculture, Food and Fisheries, Minister for Forests, Minister for Regional Development, Minister for the Status of Women, Minister for State/Local Government Relations) (13:00): I move:

That this bill be now read a second time.

I seek leave to have the second reading explanation inserted in Hansard without my reading it.

Leave granted.

This Bill introduces legislative amendments to extend the stamp duty concession for apartments bought off-the-plan to include the inner metropolitan area.

The inner metropolitan area includes apartments in developments within the area of Regency Road, Hampstead Road, Portrush Road, Cross Road, Marion Road Holbrooks Road, East Avenue and Kilkenny Road. The extended area also includes sites that are contiguous to the boundary of that area (i.e. will include sites on both sides of the bordering roads).

The Government has recently announced that it will rezone some inner metropolitan areas to allow for greater residential growth. The new zones will allow new mixed commercial and residential developments in targeted inner metropolitan areas.

The overhaul of planning laws and rezoning of areas within the inner metropolitan area will allow more people to enjoy the benefits of an inner city lifestyle in well-designed housing with access to public spaces and the vibrant lifestyle for which Adelaide is becoming renowned.

In the 2012-13 Budget, the Government announced a stamp duty concession for purchases of eligible off-the-plan apartments, with the aim of encouraging higher density inner-city living in line with the Government's 30-year plan. The concession provides a full stamp duty concession for off the plan contracts entered into up to 30 June 2014 (inclusive), capped at stamp duty payable on a $500,000 apartment and a partial concession for the next two years.

The Government wants to encourage multi-storey living in the inner metropolitan area and therefore proposes to extend the off-the-plan stamp duty concession to multi-storey developments within the defined inner metropolitan area.

The off-the-plan stamp duty concession will be available for buyers of apartments within the inner metropolitan region who enter into an eligible off-the-plan contract from 28 October 2013. All other eligibility criteria remain the same.

The total impact to the budget of this measure over the forward estimates is estimated to be $5.9 million.

Together with the planning reforms and the Government's investment in public transport, these reforms are intended to support the Government's objective of building a more vibrant city that offers an increased choice of housing and the opportunity for more people to live centrally.

I commend this Bill to the House.

Explanation of Clauses

Part 1—Preliminary

1—Short title

This clause provides for the short title of the measure.

2—Commencement

The measure will be taken to have come into operation on 28 October 2013.

3—Amendment provisions

This clause is formal.

Part 2—Amendment of Stamp Duties Act 1923

4—Amendment of section 71DB—Concessional duty on purchases of off-the-plan apartments

This clause sets out a series of amendments that will extend the operation of section 71DB of the Act to the purchase of apartments under an off-the-plan contract with respect to an area to be designated as Area B under these amendments (being a contract entered into on or after 28 October 2013).

5—Insertion of Schedule 3

This Schedule sets out the plan to be used for the purposes of identifying Area B under section 71DB of the Act (as amended by this Act).

Debate adjourned on motion of Hon. J.S.L. Dawkins.

[Sitting suspended from 13:01 to 14:17]