REIA calls for FHOG boost

Staff Reporter

The Real Estate Institute of Australia (REIA) is urging the government to increase the First Home Owner Grant in a bid to stimulate the property market.

In its pre-budget submission, the REIA said it was now crucial for the government to address the various housing affordability issues plaguing Australians.

“The lack of financial assistance to first home buyers is an issue that requires considerable attention to ensure that property is affordable for young Australians and that they can one day aspire to own a home. REIA urges the government to not only retain the grant, but to review the amount currently provided as the relative size of the grant has declined markedly in relation to house prices,” REIA president Pamela Bennett said.

In addition, Ms Bennett said the government should address Australia’s inefficient property taxes.

It would be prudent of the government to remove stamp duty on all property transactions, increase the First Home Owner Grant, monitor the Housing Affordability Fund, appoint a National Small Business Commissioner, and add no capital gains taxes on the family home, Ms Bennett said.

“Inefficient state property taxes and the development of solutions to improve housing affordability and supply are key issues for the next financial year and we would like to see action from the government.”