News

Highlights of the NSW budget for the northwest property industry

The Barry O’Farrell government released its 2012-2013 budget today.

 
Some of the highlights for residents and business in the north western suburbs include:
 
The North West Rail Link, which will link the north west, including the Norwest Business Park, to the Sydney CBD, will receive $360 million funding - $3.3 billion has been allocated over the next four years. The funding will go towards the preparation of major construction sites, property acquisition and a second Environmental Impact Statement.
 
“Budget funding also allows the North West Rail Link project team to prepare for the awarding of the major construction contracts, with major tunnelling scheduled to start in 2014," according to Transport Minister, Gladys Berejiklian.
The Treasurer, Mike Baird also announced major changes to stamp duty and other property concessions designed to boost the purchase of newly constructed homes in NSW and further measures to fast-track the approval of major housing developments.
BUDGET FORECASTS FOR 2012-13
  • State economic growth: 2.25 per cent.
  • Unemployment rate: 5.5 per cent.
  • Budget deficit: $824 million.
  • Budget expenditure: $60.5 billion.
  • Infrastructure investment: $15 billion (General government sector and Public Trading Enterprise sector).
PROPERTY
  • The First Home Owner Grant will more than double to $15,000 for first-time buyers of new property. From 2014, the grant will drop to $10,000.
  • he $7,000 First Home Owner Grant will be abolished for existing properties.
  • First home buyers will continue to be exempt from stamp duty if buying new property. The threshold lifts from $600,000 to $650,000.
  • Non-first home buyers will be eligible for a $5000 grant if buying new property.
TRANSPORT
  • $3.3 billion over four years allocated for the North West Rail Link.
  • $941 million to go towards duplicating the Pacific Highway.
  • $116 million to begin construction of the light rail extension in the inner west.
  • $127 million to buy 269 new buses for Sydney.
PLANNING
  • $481 million allocated to a Housing Acceleration Fund to build infrastructure in areas of housing growth in an effort to assist the supply of new housing. Ten projects costing $181 million have already been identified in eight areas of housing growth, which will together support 76,000 new homes. The areas are Camden/Liverpool, Blacktown, The Hills, Hornsby/Parramatta, City of Sydney, Wollongong, Wyong, Port Macquarie-Hastings.
  • Assessment of the backlog of approvals of state significant projects (those formerly assessed under Part 3A) will be fast-tracked, processed at up to twice the rate as they are being processed now.
  • Financial incentives for councils to process development applications more quickly.