Louise Markus (Greenway, Liberal Party) Share this | Hansard source

Before I talk about the challenge of the New South Wales Labor government and some of its policies with regard to land—supply, access and, of course, levies and taxes—I would like to highlight the contrast between the state Labor governments and the federal coalition government. We believe that improving families’ access to income by effectively cutting them out of the tax system, increasing rent allowance and delivering better family tax benefits will improve the position of families as a result. Most importantly, we have the best opportunity in 33 years for a member of the family to get into the workforce. This definitely has an impact on their capacity to afford a home.

In contrast I will focus on the policies of the New South Wales state Labor government in particular. It has presided over the highest level of taxes and charges levied on the cost of a new home and the largest shortfall of broad-hectare land release provision of any state or territory. The member previously spoke about searching for a home and finding that the house itself was not worth much though the price of the house and land was close to half a million dollars. I think that highlights what I am about to say and confirms the argument that I and members on this side have been putting forward today. The number of new lots released, for example, in New South Wales 15 years ago was 7,931. Last year, in contrast, it was 2,780. That is a 65 per cent decrease. The average lot size in New South Wales 15 years ago under Liberal Premier Nick Greiner was 600 square metres. Last year it was 450 square metres. That is a 25 per cent decrease. The average price for a lot in New South Wales 15 years ago was $75,000. Last year it was $310,000. That is a 400 per cent increase. The New South Wales state taxes and charges and the large shortfall in the release of broad-hectare land are critical factors in that unnerving statistical picture.

At their core, New South Wales land and property taxes are not only restrictive but also inequitable. It has become more difficult to enter the property market in that state, and families and individuals have been driven out of the state to more tax-friendly environments. Local infrastructure levies applied to new homebuyers are now levied at a rate far in excess of the actual cost of essential housing infrastructure such as water and sewerage. For example, in Sydney total levies now average about $68,000. The actual cost of the infrastructure is around $1,700. So what happens to the difference? What happens to the $66,000? Where does it go? Does it go into state government coffers? What do they do with it? Maybe nothing. Environmental compliance costs have also added to the costs of new housing.

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