The South Australian government, in partnership with the federal government, has announced an $800 million initiative aiming to deliver approximately 17,000 new homes, including nearly 7,000 for first-home buyers. Concurrently, the state's Liberal and Labor parties have outlined key policy proposals ahead of the upcoming state election, spanning housing, aged care, and health.
Federal-State Housing Partnership Unveils 17,000 New Homes Initiative
An $800 million partnership between the South Australian and federal governments has been announced to facilitate the construction of approximately 17,000 new homes. This initiative includes a target of nearly 7,000 homes designated for first-home buyers.
Prime Minister Anthony Albanese and Premier Peter Malinauskas revealed the details, noting that development efforts under this agreement will primarily focus on Adelaide's northern areas.
Funding Breakdown
- Federal Government Contribution: A $534 million loan will be provided to the state government.
- $300 million is allocated for water infrastructure in Adelaide's northern suburbs.
- $184 million is designated for 1,700 homes within urban renewal projects across Adelaide.
- State Government Contribution: The state government will contribute $134 million to match federal funding, supporting the construction of 750 houses for first-home buyers.
Prime Minister Albanese indicated this commitment aligns with federal Labor's 2025 election objective to build 100,000 homes nationally for first-home buyers. Housing affordability remains a significant concern in South Australia, with Adelaide's median house price approaching $1 million.
State Election Policy Landscape: Housing and Aged Care Front and Center
Ahead of the state election, the Liberal and Labor parties have presented distinct approaches to housing and aged care.
Liberal Party: Housing Affordability and Downsizer Relief
The Liberal Party proposes a one-off $15,000 concession on stamp duty for South Australians over 55 who are downsizing to homes valued under $1.2 million. Party leader Ashton Hurn stated this policy aims to stimulate movement in the housing market and reduce financial strain for downsizers.
This policy is estimated to cost $46 million over four years. The proposal follows a previous Liberal commitment to abolish stamp duty for all first-home buyers purchasing new or established homes under $1 million.
Labor Party: Expanding Aged Care Capacity
The Labor Party has outlined plans to address aged care capacity and hospital backlogs, aiming to create 1,300 new aged care beds.
A central component involves transforming the Women's and Children's Hospital (WCH) in North Adelaide into an aged care precinct with over 600 beds, in partnership with the private sector. The government intends for the North Adelaide site to remain for public use after the hospital's relocation in 2031. The government has committed $3 million for planning, with the private sector expected to cover the majority of final costs.
Labor also announced a $250 million no-interest loan scheme for aged care providers to construct an additional 720 new beds. Premier Peter Malinauskas stated the state government is stepping in to address this need. Health Minister Chris Picton indicated that aged care beds in South Australia are nearing full capacity. New beds are also expected to open soon at the ECH College Grove aged care facility.
The Liberal Party has stated that, if elected, it hopes to create a step-down facility at the current WCH site to alleviate aged care bed blockages.
Industry and Political Commentary
Industry leaders and political figures have offered perspectives on the announced initiatives.
Liam Golding, Chief Executive of the Urban Development Institute of Australia South Australia, identified infrastructure as a primary hurdle to increasing housing supply and emphasized the need for prompt implementation of funding.
Will Frogley, Chief Executive of Master Builders SA, stated that an additional 20,000 workers are required to supplement the existing 90,000 employees in the state's housing construction sector.
Opposition spokesperson Ben Hood acknowledged the need for more workers and construction materials. He proposed alternative solutions, including removing stamp duty on first-home purchases up to $1 million, increasing the payroll tax threshold, and exempting trainees and apprentices from this tax.
Premier Malinauskas criticized the Liberal Party's communication regarding its stamp duty policies, citing multiple changes in recent months.
Liberal leader Ashton Hurn stated that Labor's WCH announcement was similar to a Liberal promise made weeks prior to retain the site as a health precinct.