WA Treasurer Rita Saffioti Advocates Multi-Generational Living and Stamp Duty Relief for Housing Crisis
In a significant move to tackle Perth's escalating housing crisis, WA Treasurer Rita Saffioti has called for a cultural shift towards multi-generational living while teasing additional stamp duty relief measures ahead of the State Budget in May. Speaking at a business breakfast, Saffioti highlighted the government's expanded stamp duty concessions for new apartment builds, which are projected to reduce tax bills by approximately $32,000 on an $800,000 property.
Defending Revenue Windfalls and Promoting Caution
Saffioti was compelled to defend a $2 billion revenue windfall generated from surging property prices, emphasizing the government's careful approach to avoid overheating the market. She assured that more assistance is forthcoming for first homebuyers, stating, "We're very careful in what we do in relation to this space to make sure that we bring on more supply and not create excessive heat in this market." However, she cautioned that details are still being finalized during the budget process.
Opposition Criticisms and Industry Support
The announcement of $70 million in strata incentives was met with skepticism from the Opposition, with Basil Zempilas dismissing it as "mere tinkering around the edges." He accused Saffioti of prioritizing budget surpluses over genuine relief for West Australians locked out of the housing market. In contrast, Saffioti addressed the Urban Development Institute, outlining reforms aimed at encouraging seniors to downsize into apartments, duplexes, or triplexes without coercion.
She noted that apartments constitute only 7.3% of WA's housing stock, compared to 23% in New South Wales and 14% in Queensland, underscoring the need for increased density. Saffioti urged developers to counter community opposition, which she claimed is often exaggerated, saying, "The fear that's whipped up far outweighs what is actually happening. Industry bodies, people that are passionate about the future, need to be out there and be the voice of reasoning."
Multi-Generational Living as a Solution
Proposing innovative solutions, Saffioti suggested shared equity schemes and multi-generational living to address the issue of "kippers"—kids in parents' pockets eroding retirement savings. Drawing inspiration from Italy, she described a model where grandparents, parents, and children occupy different levels of a home, stating, "It's not the worst idea, as long as you like your kids, your kids like you. But it's again making better use of the space that we have."
Political Tensions and Bipartisan Calls
Saffioti and Housing Minister John Carey have repeatedly accused the State Opposition of opposing medium to high-density projects through an inquiry into land development and planning. Basil Zempilas has denied these allegations, but UDIA chief executive Tanya Steinbeck supported Labor's stance, calling for a bipartisan approach. She warned, "The last thing we need at the moment is politicisation of planning when we have a housing supply crisis," and confirmed her belief that the Liberal party is guilty of such politicization.
Steinbeck predicted it would take 12 to 18 months for the government's concessions to translate into new developments, emphasizing the critical need for increased supply. She explained, "So if we can create enough new supply, at the moment, people that are sitting in their homes are reluctant to sell because they have nowhere to go. There's no options."
Parliamentary Debates and Leadership Challenges
During Question Time, John Carey used UDIA's comments to challenge the Opposition Leader, who remained silent in Parliament. Carey argued, "Anyone who understands the viability of development projects, it is height that makes a project. When you say this project should be completely changed and remove the height you're saying the project should not proceed and the third classic part of the NIMBY handbook is to perpetuate fear." He contrasted this with what he termed real leadership in a time of housing need.
As the State Budget approaches, Saffioti's proposals for multi-generational living and stamp duty relief are set to be key focal points in ongoing discussions aimed at alleviating Perth's housing pressures, with political and industry stakeholders closely watching for further developments.
