Productivity Commission Report on hold
14 May 2004
Although the discussion paper by the Government’s Productivity Commission
into First Home Ownership was handed to Parliament over a month ago, the final
report and resulting recommendations may not be released until as late as August
2004. According to the Treasurer, Mr Peter Costello, the reason for the delay in
releasing the report was the release this week of the latest Federal Budget.
The Productivity Commission Report recommended several steps to help first
home owners and increase housing affordability in Australia, including...
- A recommendation that high income earners should not be able to receive
taxpayer funded subsidies toward the purchase of their first home.
- Income means testing for first home owners and an allocation of a first home
owners’ grant based on the results.
- The removal of stamp duty on first home purchases.
Although many industry groups and commentators also recommended allowing
first home buyers access to their superannuation for a deposit on their first
home purchase, the Commission did not include this recommendation in their draft
report to the Government.
The Commission also elected not to make any changes to negative gearing
legislation or capital gains tax.
Mr Costello said, “the Productivity Commission Report will be considered by
cabinet and when it is considered by cabinet it will be released."
Note
This public inquiry
into the affordability and availability of housing for
families and individuals wishing to purchase their first
home has concluded. The
inquiry report was released by the Australian
Government on 23 June 2004. The Government response is
contained in the Treasurer's media release,
Release of the Productivity Commission Report on First
Home Ownership.
|
