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Canberra Today 12°/16° | Saturday, March 30, 2024 | Digital Edition | Crossword & Sudoku

ACT Budget / Master Builders decry lack of vision

THE 2019-20 ACT Budget has failed to set a long term infrastructure vision for the city, according to the CEO of Master Builders ACT, Michael Hopkins. 

Instead, he says, the Budget reveals that the Territory’s economy will increasingly rely on the success of the private sector, in particular the property and construction sector, to return the ACT to future budget surpluses.

According to Mr Hopkins, the 2019-20 ACT Budget contains a $770 million capital works program for 2019-20, higher fees and charges to fund basic government planning and building services, and stamp duty reform for eligible first home buyers.

“The MBA welcomes initiatives in the budget which will provide more resources to improve building quality and six additional development assessment staff, however, unfortunately these measures will be funded through $3.1 million in increased license fees, building levy and DA fees,” he says.

Mr Hopkins says the Budget comes at a time when the ABS building approval figures show a 19.9 per cent decline in total dwelling approvals over 12 months (to March).

“[There’s also been] a gradual decline in capital works funding from close to $1 billion in 2016-17 to $581 million in 2022-23”, he says.

“Without a long term infrastructure plan prepared in consultation with the combined talents of local community, local industry, utility providers, and adjoining NSW local Councils, the ACT risks missing out on Federal infrastructure funding.

“Overall the contribution from real estate taxes, including land tax, rates and stamp duty will increase by $62 million, from 48.9 per cent of the Territory’s total tax take in 2018-19 to 49.5 per cent in 2019-20.”

Mr Hopkins says the four year indicative land release forecasts a 8 per cent reduction in the release of new land from 17,000 announced last year, to 15,600 forecast for 2019-20.

“This announcement comes after the budget reveals the Suburban Land Agency fell short of its budgeted dividend by $40.2 million,” he says.

“To better address the changing needs of the local housing market, the MBA would like to see Government make more englobo land sales or enter more JV partnerships so that the responsiveness and innovation of the private sector can be optimised.”

 

 

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