Land for Housing
Anybody concerned for Sydney, is concerned right now at Sydney’s growth. An additional thousand people every week coming into Sydney is putting pressure on housing.
Today more units are sold than family homes, blocks of land are not being released by the Government to avoid having to pay for the infrastructure costs of roads, rails, schools, hospitals and so on, that comes with urban sprawl. Residential areas are being forced to acquire more unit developments in an attempt to consolidate the city. That brings anxiety to residents who see their suburban areas turned into rows of town houses and blocks of units increasing traffic congestion.
Now comes the threat that every block of land purchased will cost and extras $15,000 in a new Government tax to pay for infrastructure costs. Obviously the Government does not want to publicise this, so close to an election.
So in Parliament this week I asked the State Treasurer:
“Is it a fact that Sydney developers will be forced to pay a $15,000 levy on newly released blocks of land to help fund roads and infrastructure? Is it a fact that this levy will primarily target young families that, in general, are struggling to afford a block of land and home in outer Sydney suburbs such as Camden and Kellyville? Will the Treasurer explain why the State Government intends to burden young struggling families with this additional tax, rather than spread the cost across the broader community, which can help share the burden of funding roads and public transport? How much is paid to the State Government from land purchases in the form of surcharges, sales tax, stamp duties, et cetera per every $100,000?”
The treasurer, The Hon. MICHAEL EGAN replied: “I will refer the question of Reverend the Hon. Dr Gordon Moyes to the Minister for Planning for a detailed response. Suffice it to say the infrastructure costs associated with the release of urban land are substantial. In decades gone by it was virtually the practice of governments to enable land to be developed for housing without any infrastructure being provided. Indeed, some areas in Sydney that have been well established for 40 or 50 years still require some of the infrastructure which these days would be regarded as basic and essential, such as public transport.
I assure Reverend the Hon. Dr Gordon Moyes that the Government is doing what it can to ensure an availability of residential land so that the price of blocks of land does not go through the roof any more, unfortunately, than they have during my lifetime.”
From the Treasurer’s answer, it seems that the additional tax will be imposed on all new purchases of blocks of land. The developers will not be paying that, of course, but the buyers will. As most buyers of outer suburban blocks of land are young couples, this impost for roads and sewerage and public transport will fall almost entirely on them, at a time when they can least afford it.
The Federal Government gained much praise from young families, by making the $14,000 first home buyers grant available to them to make new homes more affordable. Now it seems the State Government is just going to transfer that into the State coffers.
No wonder the Treasurer only wanted to give me assurances, and has passed the question on to the Minister for Planning to answer. Nothing wrong with that – except the Minister of Planning will not reply until after the election!
This is GORDON MOYES.
