Victorian Premier Daniel Andrews this week revealed his state’s economic masterplan that he hopes will lift Victoria out of its grim recession.
Victorians have taken a battering this year after being the hardest hit state in Australia by COVID-19, though there is reason for optimism after the anticipated announcement of the budget.
Plans to inject almost $50 billion into the state’s economy and the creation of 400,000 jobs by 2025 are the main takeaways from the budget announcement, with a significant chunk of the cash being put towards social housing.
OzHomeNews got the thoughts of several industry leaders for their take on the budget reveal, and what it means for the state moving forward.
DealCorp Executive Chairman, David Kobritz, said that he was impressed by the Andrews’ Government budget.
“Overall, it is very positive after the year we have been through,” he said.
“The mixture of both short- and longer-term stimulus is a good thing provided that the debt is secured at low rates over the medium term,” said Mr Kobritz.
However, Mr Kobritz added that despite many key sectors set to benefit from the budget, the need for planning reforms is still yet to be addressed.
“Now is the time for planning reforms and not just the time to talk about the need for reform,” he said.
The cost of planning approval delays plus the cost of satisfying construction financiers have gotten completely out of hand and the consumer ultimately pays the price because of the substantial additional costs.DealCorp Executive Chairman – David Kobritz
A whopping $5.3 billion has been set aside for the ‘Big Housing Build’, which includes the support of the build-to-rent sector, stamp duty concessions, and the construction of 12,000 new public housing homes by 2024.
“The build-to-rent incentive will be welcomed,” said Mr Kobritz.
“But it should be complemented by Federal Government GST concessions,” he said.
“Short term stamp duty concessions are welcomed but we require incentives for local and overseas-based investors to return especially for off the plan pre-sales.”
A 50% stamp duty concession on the purchase of industrial and commercial properties is included in the plans, aiming to make regional Victoria a more attractive investment proposition for savvy buyers.
Sandhurst Retail Managing Director, Vivek Subramanian, said: “Reducing stamp duty on commercial and industrial land will incentivise businesses to invest in regional Victoria.”
It will strengthen local economies by providing jobs and encourage expansion, thus putting regional Victoria in good stead for a rapid recovery.Sandhurst Retail Managing Director – Vivek Subramanian
That will be music to the ears of Victorians across the state as they, like many, wish to put 2020 behind them and look ahead to bouncing back from a period of economic turbulence.
“Confidence levels in the market have been shot this year,” said Mr Kobritz.
The budget stimulus package will assist to improve the level of confidence which was not helped by so-called economic experts frightening the average consumer,.DealCorp Executive Chairman – David Kobritz