First of all, I draw to the attention of the House the fact that the Leader of the Opposition, who just made a contribution to debate and has left the Chamber, has absolutely no support on his position. That is interesting. I am delighted to contribute to the debate on the First Home Buyer Legislation Amendment Bill 2023. The purpose of the bill is simple. The objects of the bill are:
(a) to amend the Duties Act 1997—
(i) to require a person to reside in a home as the person’s principal place of residence for a continuous period of at least 12 months to be eligible for a duty exemption or concession, and
(ii) to revise values for property to be eligible for the purposes of the First Home Buyers Assistance Scheme, and
(b) to amend the Property Tax (First Home Buyer Choice) Act 2022 to prevent a person making an election to pay property tax rather than stamp duty on a transfer of land occurring on or after 1 July 2023, and
(c)to amend the First Home Owner Grant and Shared Equity Act 2000 to require first home buyers to reside in the home as their principal place of residence for a continuous period of at least 12 months to be eligible for a First Home Owner Grant.
The great Australian dream of owning your own home has never been so unattainable for many. That is a fact that cannot be disputed. Rents have risen sharply, as have house prices and, more recently, interest rates. All of those factors have made it increasingly harder for first home buyers to enter the property market. They are disappointed and disillusioned at their prospects of ever owning their own home. I can understand why they feel that way. I was alarmed when I looked at the figures regarding households in mortgage or rental stress within the Heathcote electorate. A household is considered to be in mortgage stress when it spends 30 per cent or more of its income on rental or mortgage payments. Make no mistake: Figures available through the Australian Bureau of Statistics paint an extremely grim picture for suburbs in my electorate.
Let us take Engadine as an example. In 2016, 4.9 per cent of households were in mortgage stress; in 2021 that number had almost tripled to 14.1 per cent. I shudder to think what that number is today. Sutherland residents also saw their household budgets stretched even further, with those in mortgage stress climbing from 7.5 per cent to 15.9 per cent in the same period. It is important to note that was before interest rates began to climb, which means it is likely that more households are in mortgage stress now. Spare a thought for those renting. The bad news keeps on coming. In 2016, 4.6 per cent of households in Engadine were in rental stress; five years later, that number had risen to 38.7 per cent. I repeat: That is 4.6 per cent to 38.7 per cent in the space of just five years. Helensburgh renters also experienced a tough five years, with the number of households in rental stress rising from 4.8 per cent to 35.6 per cent. Bulli, Thirroul and Sutherland also rose from 8.5 per cent, 6.2 per cent and 16.4 per cent to 35.1 per cent, 30 per cent and 32.5 per cent respectively.
What exactly do the numbers mean and how do they impact the everyday lives of those households? Let us take a prospective first home buyer, for example. If they are contributing more than 30 per cent of their income towards paying the rent, it means that there is not a lot left over at the end of the day to save for a home deposit. It means the divide between the haves and have nots in terms of property ownership has only widened. However, there is light at the end of the tunnel for first home buyers in the form of a new stamp duty scheme being proposed by the New South Wales Government. How would it work? Those first home buyers purchasing a home between $700,000 and $800,000 would not be required to pay stamp duty. It equates to a saving of up to $31,090. Those purchasing a property for $850,000 would save more than $23,000, with the savings continuing for those purchasing properties valued at up to $1 million.
In simple terms, the New South Wales Government is proposing to increase the exemption threshold from $650,000 to $800,000 and the concession threshold from $800,000 to $1 million. Those savings would make an incredible difference to the lives of many people who desperately want to get a foot in the property market. The difference between the policies of the members on this side of the House compared to the policies of those on the other side is stark. Those on the other side wanted to introduce a land tax; we on the progressive and sensible side of the Chamber are focused on putting more money back in the pockets of New South Wales residents. The Minns Labor Government's first home buyer changes would see up to five out of every six home buyers receive a boost. I will say that again: Under the Minns Labor Government's stamp duty changes, five out of six first home buyers would be better off.
As I touched on earlier, the bill also aims to amend the Property Tax (First Home Buyer Choice) Act 2022 to prevent a person making an election to pay property tax rather than stamp duty on a transfer of land occurring on or after 1 July 2023. Members opposite will tell you that their proposed tax on first home buyers was a good thing and that it would have provided home buyers with a choice. It was a choice, all right. You could pay hefty stamp duty as usual or pay an ongoing tax year after year. It was nothing but another way for the former Government to prey on vulnerable households doing it tough. It was another excuse for the former Government to pillage the pockets of hardworking residents throughout the State, including in my electorate of Heathcote.
It was another example of a policy from a former government that forged a reputation for profiting from the vulnerable while lining the pockets of the ultra-wealthy. The land tax was one of many failed policies and decisions that led to the former Government now calling that side of the Chamber home for at least the next four years. I say "at least" because, if the sentiment in my electorate is anything to go by, those opposite will be stuck on that side for many more years to come. I have lost count of the number of local families I have spoken to that are doing it tough at the moment.
I know from my own family that young people are struggling with rents. Wanting to be closer to work and independent, they feel they will never be able to get ahead or have housing security for the future. Whether they live in Bulli in the southern end of my electorate or in Kirrawee in the northern end of my electorate, their concerns are the same. Rising power bills, rising grocery bills and rising fuel prices have placed an incredible strain on many household budgets. Increased rents and mortgage repayments have only added to the stress being placed on the bottom lines of households. That is why the amendments in the bill make sense. The amendments in the bill will provide much-needed and welcome relief, particularly for those from younger generations who are desperate to enter the property market.
The amendments in the bill will actually help first home buyers achieve the great Australian dream of owning their own home. The bill will not tax the hip pockets of first home buyers. I am extremely proud to serve in a New South Wales Labor government that values all people. This New South Wales Government does not discriminate by electorate. It is a government for everyone. That is something the former New South Wales Liberal‑Nationals Government cannot claim. One need only look at the bushfire grants saga or the Stronger Communities Fund debacle to see clearly how those on the opposite side of the House—those in opposition—put politics before people. They were more interested in rescuing their fledgling political careers than serving their communities. They were reckless, mismanaged the budget and had no fiscal restraint when it came to trying to save themselves.
