With housing affordability squarely on the national agenda in the lead up to the federal election, one of Western Australia’s most prolific residential developers, Nigel Satterley, has called on both sides of politics to give tax breaks to first homebuyers.
Mr Satterley also agreed with the proposal by both parties to sell-off Commonwealth land for housing, but said this would take several years to have an effect.
He suggested the sale of prime Commonwealth land in up-market locations could help fund tax deduction claims by first homebuyers.
“I believe first homebuyers should be allowed to claim their interest payments as tax deductions for between five and seven years on house and land up to $600,000,” Mr Satterley said in a statement.
“This would allow people to break through from the rent cycle and enable them to buy their own homes and get started on long-term home ownership. Importantly, it would take people off the bulging state housing rental lists.”
The idea is one of several pitched by housing industry stakeholders in the lead up to the election in an effort to combat soaring house prices.
The Housing Industry Association of WA reiterated its call this month for the introduction of a pro-savings initiative ‘Home Super Saver Accounts’ that would reward aspiring home owners by allowing them to salary sacrifice for a home deposit.
Under the scheme, wage earners would be able to make additional voluntary contributions into their superannuation accounts, which could then be used for a deposit on a home.
The association reports affordability in Perth in the September quarter was 11.3 per cent lower than the same period last year, and down by nearly 9 per cent in regional WA.
It estimates a first homebuyer on an average household income in Perth and regional WA would have to commit more than 36 per cent of their income to buy a typical first home.