Tuesday, October 11, 2011

seachangers as yet unmoved

As political momentum builds towards a coming Queensland election an interesting post at the Sydney Morning Herald today on regional policy. We can expect lots of policy on regional support which has already been prominent such as sending public servants from Brisbane to Cairns. So this recent policy in NSW is interesting:

Fewer than 50 households have signed up to a state government scheme to encourage relocation from urban to regional areas in its first three months, casting doubt over a forecast take-up of 7000 a year.
The relocation grant scheme was central to the Coalition's pre-election pitch to create a ''decade of decentralisation'' in NSW.
The Premier, Barry O'Farrell, said the scheme was designed to promote ''whole of NSW growth'' and ease pressure on the Sydney metropolitan area. The Finance Minister, Greg Pearce, told Parliament in June it would help ''kick-start'' regional NSW.
Apparently, a grant of $7,000 is available to move from the Sydney metropolis, including Newcastle and Wollongong, to the regions beyond if you sell up your home and buy in the regions. The marketing apparently includes retirement expos. This appeared in the real estate section of SMH so not surprising that the quoted 'industry expert' recommended an extension to first home buyers.

Perversely, this appears in the week after the tax forum where, again, the inefficiency problem of state property stamp duties in restricting geographic mobility was prominent. It's almost like a deliberate strategy to find the most inefficient means to an end!

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