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Legislative Council - Fifty-Second Parliament, Second Session (52-2)
2013-06-20 Daily Xml
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FIRST HOME AND HOUSING CONSTRUCTION GRANTS (BUDGET 2013) AMENDMENT BILL

Introduction and First Reading

Received from the House of Assembly and read a first time.

Second Reading

The Hon. I.K. HUNTER (Minister for Sustainability, Environment and Conservation, Minister for Water and the River Murray, Minister for Aboriginal Affairs and Reconciliation) (18:29): I move:

That this bill be now read a second time.

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

Leave granted.

This Bill introduces legislative amendments to extend the Housing Construction Grant (HCG) for a further six months as announced in the 2013-14 Budget.

A HCG of up to $8,500 has been available for home buyers who have entered into a contract to buy or build an eligible new home from 15 October 2012. The HCG applies to properties valued up to $400,000 and phases out for properties valued between $400,000 and $450,000. The HCG was due to end on 30 June 2013.

The extension of the HCG means that home buyers who enter into contracts to purchase or build an eligible new home up to 31 December 2013 can receive the HCG of up to $8,500. All other existing criteria for the HCG remain unchanged.

Since the HCG was introduced, the housing construction market has shown some early signs of improvement, with dwelling commencement and building approvals data showing some early indications of a pick-up in activity from levels recorded in mid-2012. The extension of the HCG for a further six months is intended to support the consolidation of this improved outlook for the housing construction sector.

Extending the HCG for a further six months is expected to cost $38.6 million over two years.

I commend the Bill to Members.

Explanation of Clauses

Part 1—Preliminary

1—Short title

This clause is formal.

2—Commencement

This clause provides that operation of the measure will commence on 1 July 2013. If the Act is not assented to before 1 July 2013, it will be taken to have come into operation on that date.

3—Amendment provisions

This clause is formal.

Part 2—Amendment of First Home and Housing Construction Grants Act 2000

4—Amendment of section 18BAB—Housing construction grant

This clause amends section 18BAB of the Act by substituting '1 January 2014' for '1 July 2013', so that a housing construction grant is payable on an application under the Act (subject to the other requirements of the section) if the commencement date of the eligible transaction is on or after 15 October 2012 but before 1 January 2014. If the eligible transaction is a contract for an 'off-the-plan' purchase of a new home, the contract must state that the eligible transaction is to be completed on or before 30 June 2015 (unless the transaction is completed on or before that date). Currently, the section requires the contract to state that the eligible transaction is to be completed on or before 31 December 2014.

Schedule 1—Transitional provision

1—Transitional provision

A transitional provision is included to deal with the possibility of a person receiving an ex gratia payment to provide for a housing construction grant for the period between 1 July 2013 and the day on which the Act is assented to by the Governor. If a person is entitled to a housing construction grant in relation to an eligible transaction with a commencement date that is on or after 1 July 2013, and the person has received an ex gratia payment before the Act is assented to, the amount of the entitlement will be reduced by the amount of the ex gratia payment.

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


At 18:30 the council adjourned until Wednesday 3 July 2013 at 14:15.


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