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Budget balm for home buyers

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Seems like theage has added an auto link feature to copy and paste.

Anyway good to see the liberal government doing their bit to help affordability. At some point you would think someone would stand up and say if prices came down we wouldn't need to waste this money.

FIRST home buyers will save thousands of dollars this year as the state government moves to cut stamp duty, extend the first home bonus, and provide more concessions for low-income earners.

But Victoria is still the second most expensive state in which to own a home, and industry experts warn it will not be enough to stop thousands of people being priced out of the market as the population continues to soar.

Premier Ted Baillieu's first budget is expected to contain $754 million to deliver on his election promise to halve stamp duty for first home buyers over the next four years, with the first 20 per cent reduction taking effect on July 1.

Advertisement: Story continues below This will mean that anyone buying property worth $565,000 - the median house price - will get a saving of $5794 on a stamp duty bill that would otherwise be $28,970. By the time stamp duty is halved in 2014, this saving will be valued at around $14,485.

Read more: http://www.theage.com.au/victoria/budget-balm-for-home-buyers-20110430-1e2ab.html#ixzz1L4vRTvUh

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Seems like theage has added an auto link feature to copy and paste.

Anyway good to see the liberal government doing their bit to help affordability. At some point you would think someone would stand up and say if prices came down we wouldn't need to waste this money.

There's no time limit on it so it won't result in panic buying, actually the reverse, if FHB's want the biggest cut, wait another four years. I guess.

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In other news average household utility bills are expected to rise by $...... within four years to offset any implied saving.

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Victoria is on the verge. Piss and Wind meet Smoke and Mirrors...

AN independent report on Victoria's finances has described the position as "vulnerable" and "unsustainable", with a growing debt that will need to be repaid.

The report, commissioned by the Coalition government after it ousted Labor from of office in the November 2010 election, makes key findings that include Victoria having a growing debt and insufficient investment in infrastructure.

It also says trend growth in expenses has outstripped trend growth in revenues but has been "obscured" by federal economic stimulus funds.

"Victoria's stock of debt has risen markedly over the past three years ... This will need to be repaid by the current generation," the report says.

"Victoria's financial position is unsustainable into the medium term ... Finances are, at present, particularly vulnerable to changes in economic circumstances and are not well-placed to absorb another material financial shock."

http://www.theaustralian.com.au/news/breaking-news/victoria-has-rising-debt-report/story-fn3dxity-1226045280289

THE state government will be forced to borrow to pay public servants' wages unless it dramatically pares spending in the budget, an independent analysis of the state's finances has concluded.

The finding comes as Treasurer Kim Wells puts the final touches on next week's budget, with unions and the welfare sector braced for deep cuts as the government struggles to free up cash to deliver $5.2 billion worth of election commitments.

The report, by three leading public finance experts, also reveals the budget has been in deficit by about $1 billion for each of the past two years - a fact that was ''obscured'' because billions of dollars of federal stimulus spending had been added to the bottom line.

http://www.theage.com.au/victoria/warning-on-state-spending-20110426-1dv5r.html

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