TROY BELL MP
Member for Mount Gambier
Your Independent voice
in State Parliament
MP warns stamp duty relief comes with potential sting in tail
Thursday June 29, 2023Independent Member for Mount Gambier Troy Bell has called for the stamp duty rebate for first home buyers to be extended to include cheaper established homes.
This month’s State Budget included abolishing stamp duty for first home buyers who purchase a new home valued up to $650,000 or vacant land valued up to $400,000 to build a new home.
Mr Bell said while this was an encouraging initiative which would stimulate the building industry, secure ongoing jobs for many tradespeople and help to tackle the housing shortage, he was concerned that it may lead young home buyers into taking on more debt than they need to.
“There is nothing wrong with someone’s first house being a little older and cheaper,” he said.
“This incentive should apply to first home buyers regardless if they purchase a new house or an existing house.
“My concern is that by taking on too much debt, people can find themselves in difficult financial positions if something unexpected happens in their life.
“This could be a reduction in hours at work, the arrival of a baby, a relationship breakdown or some other unexpected event.
“Many young people cannot afford a brand-new home however they should be encouraged to enter the housing market at a lower price point and work their way up.”
Mr Bell highlighted his concern that by encouraging young home buyers to purchase brand new homes they may be exposed to extreme financial hardships without the experience of previous homeownership burdens.
“I think the initiative fails to support the whole picture when it comes to affordable housing in regional communities,” he said.
“If we want first home buyers entering the market, we should support all first home buyers not just those who can afford a brand new home.”
STAMP DUTY: Member for Mount Gambier Troy Bell discusses this month’s State Budget with Key2Sale’s Al Lamond.