This initiative follows the South Australian Government's budget announcement to abolish stamp duty for eligible first-time home buyers purchasing or building a new home valued up to $650,000, or land valued at $400,000. Barunga West Council has been a staunch advocate for this measure, seeing it as a crucial step towards making land and housing more affordable, particularly for first-time home buyers. The abolition of stamp duty could save first-time home buyers between $18,000 and $30,000.
As regional South Australia increasingly attracts young people in search of affordable housing, Barunga West plans to offer up to 300 new, affordable housing blocks over the next few years. The Council anticipates that this initiative, in tandem with the rebate scheme, will draw more young families to the area.
“Last year, we achieved a significant 2.5% growth in new ratepayers, and we expect to sustain this trend,” says Councillor Grant Rowlands. “If half of this growth is from first-time home buyers, we could see around 30 properties a year. The ensuing $15,000 in rebated fees is inconsequential compared to the commercial and social benefits of welcoming 30 new families to our district.”
This measure, approved at a special council meeting this week, comes as the Council's draft 2023/24 Annual Business Plan (ABP) is released for public consultation. The ABP outlines several upcoming projects, including the completion of a multi-million-dollar capital investment and construction program, the upgrade of Port Broughton’s Civic Square, the ‘Connecting Bute’s Outdoor Play Spaces’ project, and continued sand replenishment along Port Broughton’s foreshore.
While the Council is working to navigate rising interest rates and inflation and to balance increasing capital values, it remains committed to minimising the burden on ratepayers.
The draft ABP prioritises completing existing projects, limiting new projects, and maintaining core services. The Council's capital investment aims to stimulate growth and alleviate ratepayer pressures through population expansion.
Barunga West Council's significant capital investments over the past three years have yielded tangible results, stimulating local growth and attracting 69 new ratepayers in the 2022/23 financial year.
“This influx of new residents and property owners has not only validated our growth strategy but also signifies a positive trend for the district's future,” Barunga West Council CEO Maree Wauchope says.
“The Council is confident that this growth trajectory will continue, with new subdivisions planned for Port Broughton, Bute, Tickera, and Fisherman Bay. We have already received proposals for developments that promise to provide an additional 100 blocks of vacant land within the next year, further expanding housing options in our thriving region.
“This ongoing growth is not only exciting for our community, but it also plays a crucial role in mitigating financial pressures on our ratepayers. By expanding our base of property owners, we can more effectively distribute the burden of rising costs, ensuring the financial sustainability of our region and the affordability of home ownership for our residents.”
Addressing the significant impacts of rising interest rates and inflation - both at their highest in over a decade - has been a substantial challenge. These economic pressures, coupled with a 12% surge in average capital values, have necessitated a careful balancing act: mitigating impacts on ratepayers while generating sufficient revenue to maintain Council operations.
Council is proposing to implement modest rate increases, with residential rates rising on average by 7.4%, or an extra $1.60 a week, and primary production rates increasing by 12.3%, translating to an extra $9.11 per week. However, the differential rate for Primary Production will still be approximately 50% of the base residential rate.
Despite these adjustments, Barunga West Council will maintain one of the most competitive rate structures in the region, continuing to offer a lower differential rate and fixed charge compared to neighbouring councils.
Barunga West is proud to remain among the few councils that do not charge additional fixed fees for waste collection, further demonstrating its commitment to affordability for its residents.