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Legislative Council - Fifty-Second Parliament, Second Session (52-2)
2013-07-04 Daily Xml
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FIRST HOME AND HOUSING CONSTRUCTION GRANTS (BUDGET 2013) AMENDMENT BILL

Second Reading

Adjourned debate on second reading.

(Continued from 20 June 2013.)

The Hon. D.G.E. HOOD (16:13): I rise just to make a brief contribution regarding this bill. In summary, it is a good bill that Family First wholeheartedly supports. The First Home and Housing Construction Grants (Budget 2013) Amendment Bill is a very welcome proposal to extend the present housing construction grants scheme for a further six months.

Family First believes that family life is indeed the foundation of a good society. A home is essential for any family, and Australians have traditionally looked to home ownership as an important aspect of their life. As far back as the first century AD, Pliny the Elder made the famous statement, 'Home is where the heart is.'

The fact is we need more houses to be built in South Australia. This is not only to maintain a supply of houses but to provide employment and keep good tradespeople in South Australia. The statistics bear this out. The latest unemployment figures show that South Australia's unemployment rate had a modest increase from 5.8 per cent to 5.9 per cent between April and May this year. The housing finance commitments figures for South Australia also show a modest increase in commitments over the last six months to April 2013, while the scheme has been operating; clearly, something is working.

The figures for private sector houses approved are almost steady over that six months, but there has been a long-term decrease over the last six years, and that is the major issue. This long-term decrease is obviously of substantial concern. The home building industry needs a continuous supply of work in order to survive. Economic conditions are very tight at present, and it is important to assist those who create the demand for home building.

The amount of the grant is modest in comparison with the amount that is paid in all taxes during the building process. A report prepared for the Housing Industry Association last year found that the amount of taxes paid on a house and land package of $400,000, being the median house and land price in South Australia at the time in Adelaide's northern suburbs, was some $85,000 or more than one-fifth of the total cost of the house and land. That, of course, is passed on to the purchaser, so any attempt to give some of that back is most welcome.

Australia, unfortunately, rates very poorly in housing affordability compared to the rest of the world. One survey of major centres around the world found that our housing affordability was well behind the United States, Ireland, Canada and the United Kingdom, and only Hong Kong was worse in this particular survey. Anything that can be done to stimulate the housing industry has a very substantial multiplier effect as well. When people buy a house and land package and build a new house, they obviously then engage in employing fence contractors, they put in driveways, they plant trees, they might put in a pool, they buy refrigerators, they tile, they carpet, they paint, they wallpaper—whatever else it may be.

This is an industry that our state is vitally dependent upon. I think this is a good move from the government, and Family First is not shy to give credit where credit is due. This is a step in the right direction. In fact, the Premier was kind enough to invite me to the launch of this policy and I was quite pleased to be there. As I said, Family First wholeheartedly support this move.

Debate adjourned on motion of Hon. K.J. Maher.

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