South Australia has decided to extend its housing-related stimulus as part of the 2013 Budget handed down today, bucking the trend of other states.
Premier and Treasurer Jay Weatherill says lower than forecast revenue and GST royalties framed his Budget, which includes cost saving measures in a bid to return to surplus.
“We’ve been careful with our spending to ensure we meet the demands of today, while improving the Budget for the future,” Weatherill says.
The projected deficit for the current financial year came in at more than $1 billion. The debt projection for the coming year is $911 million but the government hopes to return to surplus by 2016.
Unlike other states, the government decided against gouges to housing stimulus. Cash grants of $8500 for anyone buying or building a new home were due to wrap up on June 30, but will now be on offer until the end of the year.
“The Housing Construction Grant is about providing an urgent boost to the state’s housing construction industry and helping stimulate the property sector,” Weatherill says.
Similarly, the $15,000 First Home Owner Grant will continue, as too will stamp duty concessions for buyers of off-the-plan apartments in Adelaide’s CBD.
The Budget also included new funds for a range of road and transport projects, including the previously scrapped Gawler rail line electrification between Adelaide and Dry Creek.That project is now back on track, thanks to a funding commitment of $152 million over the next three years.
Other spending areas of focus include small business assistance, health, education, disability support, affordable housing, a ‘vibrant city’ cultural improvement strategy and law and order.
Reproduced in full with permission: Australian Property Investor Housing grants remain in SA Budget 6 June 2013
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