Bills

Stamp Duties (Off-the-plan Apartments) Amendment Bill

Second Reading

Adjourned debate on second reading.

(Continued from 20 November 2014.)

The Hon. R.I. LUCAS (17:58): I rise on behalf of Liberal members to indicate our support for the second reading of the Stamp Duties (Off-the-plan Apartments) Amendment Bill 2014. In 2012 the government at that stage introduced stamp duty relief for off-the-plan apartment sales in the city, and at Bowden and Gilberton. That concession provided a full stamp duty concession for off-the-plan contracts entered into up to 30 June 2014 and capped at a stamp duty payable on a $500,000 apartment, which was stamp duty payable of $21,330, then a partial concession for the next two years.

In October 2013, the government announced a policy to revitalise the inner metropolitan area, allowing for up to 18,500 new homes. The government announced that it would extend stamp duty relief for off-the-plan apartment sales to rezoned inner metropolitan areas, saving people up to $21,330 on the cost of purchasing a new apartment. This was to be effective from 28 October 2013 and up to 30 June 2014, with partial concessions of between $3,250 and $15,500 for the next two years.

We are advised by the government that applications currently submitted to Revenue SA have been paid by ex gratia payments because the legislation does not make provision for that benefit. The bill that is before the parliament is seeking, in essence, retrospectively to give legal authority to provide those ex gratia payments or concessions.

In its media release announcing the policy, the government said that the expansion of the targeted stamp duty grants would cost up to $7 million. This $7 million figure was confirmed in the 2013-14 Mid-Year Budget Review and represents the amount for the three-year period up to July 2016. The government has advised the opposition that it estimates that around 260 applications have been processed so far, costing about $4 million. We are advised that this additional concession is applying to developments within the Adelaide City Council, Bowden, Park 45, Gilberton, as well as the inner metro area bounded by Regency Road, Hampstead Road, Portrush Road, Cross Road, Marion Road, Holbrooks Road, East Avenue and Kilkenny Road.

In consulting stakeholders over the legislation, we received very little response from most stakeholders. A limited number of industry associations indicated their support for the legislation. However, we did receive a detailed response from the Housing Industry Association, whose general position was that they welcomed any stamp duty relief but believed that it should be extended to other areas. Their concluded position, however, as they put to the Liberal Party, is that they opposed this bill for the reasons that it was providing a concession only to restricted areas rather than being more broadbased. The Housing Industry Association is arguing that these sorts of concessions and benefits, if they are to be applied, should be applied more broadly rather than being restricted to the CBD and inner metropolitan areas.

Whilst acknowledging that the Housing Industry Association, which is clearly a significant stakeholder in this area, is opposing the legislation, or so they have advised us, the Liberal Party, nevertheless, has adopted a position of indicating its support for the legislation whilst undertaking to put the Housing Industry Association's opposition on the public record.

The Hon. M.C. PARNELL (18:02): I rise very briefly to indicate that the Greens are supporting this bill. The problem of urban sprawl in Adelaide is going to be fixed only if we adopt a wide range of measures to encourage appropriate higher-density development in the city and inner suburbs. There are a range of carrots and sticks that can bring about desired results; certainly, the planning system is one. The development plans for the city of Adelaide and for surrounding areas can reflect the types of developments that are appropriate in terms of scale and height. But a further incentive which is worth support and which this bill contains is to provide relief from stamp duty for those who buy apartments off the plan.

Whilst I understand that there has been some criticism that this should be a universally-applied scheme of stamp duty relief, the Greens believe that it is better targeted at those areas where we want new development and we want to increase densities, and that means the city and the inner suburbs. With those brief words, I indicate that the Greens are supporting this legislation.

The Hon. G.E. GAGO (Minister for Employment, Higher Education and Skills, Minister for Science and Information Economy, Minister for the Status of Women, Minister for Business Services and Consumers) (18:04): I thank members for their second reading contributions and their support for the bill. I look forward to it being dealt with expeditiously through the committee stage in February.

Bill read a second time.