Budget 2021-22: NT construction industry says infrastructure spend is on the money, but fears remain for first home buyers

The NT construction industry has applauded infrastructure spend in today’s budget but has echoed concerns from the real estate industry about the removal of stamp duty concessions.

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The Territory construction industry has applauded the budget infrastructure spend, but has voiced similar concerns to the real estate industry about the damage to the first home buyers market by the removal of stamp duty concessions.

Master Builders NT chief executive David Malone said the Territory is heading in the right direction with the volume of investment coming down the pipeline.

NT Master Builders Executive Director David Malone. Picture: Justin Kennedy

“There is a strong infrastructure program which is so important for so many small contractors and sub contractors and suppliers,” he said.

However Mr Malone said he shared concerns that the removal of the $25,000 stamp duty incentive will drive first home buyers out of the market.

“You have to incentivise first home buyers and you have to provide some concessions for them. It is never a good thing to remove those incentives.

“The GST package on a $500,000 house and land package is $50,000 so the taxpayer does very well out of first homebuyers.

“If you get people committing to bricks and mortar you have a better chance of them staying which is what population growth is about.”

Mr Malone said the forecast in the budget for stronger domestic growth is encouraging.

“It suggests more confidence in the community and the private sector is starting to spend more money,” he said.

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“We like the idea of doing a review of the land supply system because as demand for residential building picks up we must sure we have sufficient land to match it.”

The next government land release will provide around 5,000 homes near the city of Palmerston, but it will not happen until 2022-23 with the first stage not expected until as far away as early 2026.

The NT government says there is enough land available at Zuccoli, Muirhead North/ Lee Point and Northcrest.

“So stage one headworks infrastructure is not planned to start until late 2022-23 with the first stage not expected until early 2026,” Chief Minister Michael Gunner said.

Government has targeted Holtze and Kowandi aiming to leverage on Palmerston’s existing commercial and social infrastructure and has allocated $1.1 million this year for land use planning, land investigations, concept planning and the design of enabling infrastructure.

Government says it is working with developers to streamline and improve timing of regulatory approvals.