The government says that on average buyers have saved $24,517 using the concession since it was made more widely available.
Treasurer Jaclyn Symes said the government had listened to the property industry.
“This isn’t just great news for home buyers trying to get into the market. It’s also a huge win for home builders,” she said.
The state budget also includes $24 million for the government to deliver its plan of developing 50 activity centres, which will encourage density around train stations and tram stops.
Another $12.1 million will fund planning for two new precinct structure plans in Clyde South and Derrimut Fields, targeted for 13,200 homes and 8600 jobs.
On Tuesday, a parliamentary inquiry established by the state opposition and crossbenchers concluded that Planning Minister Sonya Kilkenny had inappropriately exempted herself from a consultation process.
Planning Minister Sonya Kilkenny.Credit: Jason South
The committee, which looked into three major planning amendments brought in by Labor, was dubbed a “sham inquiry” by the government, which claimed the Liberals were trying to block building more homes.
The majority of the inquiry’s committee did not support the Liberals’ plan to revoke or substantially change the three planning amendments but did call for them to be revised.
The planning changes under scrutiny are designed to support the government’s plans to build more apartments and townhouses in 60 activity centres and smooth the way for high-density housing around proposed Suburban Rail Loop stations.
They also fast-track approval of three-storey developments and shield them from objections from neighbours under a new townhouse and low-rise code.
The changes have been welcomed by the property industry, housing groups and some economists, who say they will lead to more homes and tackle housing pressures. But they have been controversial among some prominent urban planners, councils and community groups who believe they will radically alter Melbourne’s cultural heritage.
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The inquiry’s majority report, supported by Liberal, Greens and Legalise Cannabis Victoria members of the committee, said the government had not provided any modelling about the expected effect of the amendments on housing supply, and the effect of increased supply on house prices.
“The Victorian government did not properly consult on these three amendments and the committee is of the view that the minister has inappropriately exempted herself from expected consultation,” the report said. “At a minimum, modification of planning scheme amendments should be undertaken after a round of genuine consultation with councils and communities.”
The report said concerns raised in many submissions that heritage values were at serious risk from the planning amendments were valid and protections should be available to “protect our city and its magnificent heritage buildings and zones”. It said Kilkenny did not appear before the inquiry despite a request for her to do so, nor did she explain why she would not attend.
Kilkenny told The Age it had not been a genuine inquiry by the Liberals and simply “a bit of a sham”.
“For them to put through a revocation motion will mean blocking more homes. It means denying opportunity to Victorians, particularly young Victorians, who are turning to us leaders in this place to deliver for them.
“A key barrier to building more homes is our planning rules … They’re bold reforms, but they have to be bold reforms, because the planning system is actually failing generations of Victorians.”
Kilkenny said trying to change the reforms sent a “pretty awful” message to the construction and property sector, whose investment was needed to deliver new homes.
In its minority report, the Liberals said all three of the amendments should be revoked or amended substantially.
“There are other options and ways forward to ensure a greater supply of housing in our city, including affordable housing. None of these have been adequately explored by government,” it read.
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Among the other options discussed by the Liberals were redeveloping the former defence site at Maribyrnong and building up to 80,000 homes at Fishermans Bend.
The Liberals claimed Allan’s office was involved in the co-ordination of lobbying of business and building groups, including the Property Council and the Urban Development Institute of Australia.
“Labor’s plans will wreak havoc, destroying much of Melbourne’s stunning built heritage in favour of ugly dog boxes that fail to meet basic design standards. Once this heritage is lost it is lost forever,” the Liberals said in their report. “The approach adopted by Jacinta Allan and Planning Minister Sonya Kilkenny is an act of vandalism.
“Heritage-protected properties and streets should not be subject to the full blast of Labor’s new planning amendments, and, at a minimum, these zones should be exempted.”
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