Homebuyers will fund local infrastructure through taxes in 2020

By |

The Property Council of Australia expressed concern over the local infrastructure budget after it was announced that homebuyers’ taxes will fund the sector starting in 2020, rather than being supplemented by the Local Infrastructure Growth Scheme.

In his disclosure, Minister Roberts stated that $90 million from the Local Infrastructure Growth Scheme will be allocated to provide Blacktown and The Hills with green spaces, local roads and bridges. However, this will only run through 2020, at which point “[t]he gap in infrastructure funding this program leaves will be met by the homebuyer through higher local infrastructure levies, adding up to $80k to the price of a home,” Property Council NSW Executive Director Cheryl Thomas revealed.

The problem with this is that taxes are usually higher in the city’s west, where most of the progress is happening. These new taxes will naturally increase the costs associated with buying a home, and, in the long run, will cause an equity gap between Sydney’s developed communities and those that are on the up and up.

“The Local Infrastructure Growth Scheme should have been reinstated in Tuesday’s budget, the Scheme is a true cost of living measure that can alleviate the pressure on communities across the state and provide key local infrastructure for growing communities,” Thomas concluded.

 

Related stories:
NSW housing budget "requires keen management"
Billions of new investments are seen to lift Karratha property market

 

Top Suburbs : trott park , ropes crossing , artarmon , tiwi , penrith

SHARE

Get help with your investment property



Do you need help finding the right loan for your investment?


When investing in property, it is important to make sure that you not only have the lowest available rate that you can get, but also have the correct loan features for your needs.

Just fill in a few details below and we'll then arrange for a local Aussie Mortgage Broker to contact you and work out what features or types of loans are right for your needs. We'll even help with the paperwork. Plus an appointment is free.

How soon would you like a mortgage?
What is your Annual Household Income i $
Do you currently own any Investment Properties?
Do you own your own residence?
How much equity do you have in all your current properties?
First Name
Last Name
Where do you live?
What number can we reach you on?
E-mail address
We value your privacy and treat all your information seriously - you can check out our privacy policy here