In a bid to prise city folk out of their homes and move to the regions, the NSW state government has extended its $7000 relocation grant to include those wanting to build a new home.
The relocation grant scheme was central to the Coalition’s pre-election commitment to create a “decade of decentralisation” in NSW but it had few takers with less than 50 applicants within three months of its start up in July 2011.
Now the acting Premier, Andrew Stoner, and the Minister for Services, Greg Pearce have announced plans to expand the relocation scheme from people buying an existing house to those wanting to build a new one.
In a pitch to put some sizzle into the scheme, the government will launch a publicity campaign to generate interest and raise awareness.
“Expanding the scheme even further will provide the extra incentives for people to make the sea or tree change,” Mr Stoner said. “Building new homes in regional NSW will also provide opportunities for locals, creating jobs and growing the local economy.”
The scheme would operate in a similar manner to the NSW Home Builders Bonus.
To be eligible, applicants would have to sell their city home and have bought vacant land valued at up to $450,000 for building a new home.
Laying of the foundations must start within six months of completion of the land purchase. The home must be occupied as the principal place of residence within 12 months.
A completed or off–the-plan home valued at up to $600,000 would also be eligible.
Mr Pearce said the amendments would apply retrospectively from July 1, 2011, the day the scheme was introduced.
Existing restrictions, which require grant applicants to sell their existing residence in the metropolitan area within 12 months before or after the purchase would still apply.
The Premier, Barry O’Farrell, said that the scheme was designed to promote “whole of NSW growth” and ease the pressure on the Sydney metropolitan area.
Mr Pearce told Parliament in June it would help “kick-start” regional NSW.
However, only 49 households signed up in the first three months despite a forecast take-up of 7000 a year.
Member for Bega Andrew Constance previously defended the scheme saying in October that it was premature to write off the scheme given the brevity of its life at that point and its low profile.
“It is too early in the life of the scheme; it is a four-year program. The other point is that there has been no promotional campaign as yet and that is about to commence so once that happens then obviously there will be greater awareness of the scheme.”
The grant has been offered to families willing to sell in Sydney, Newcastle and Wollongong. The value of the new property must be less than $600,000 and it must be the principal place of residence.
Opposition spokesperson for Regional Infrastructure & Services Mick Veitch criticised the scheme. In October he said, “It looks like a big flop and a big waste of money.”
At the time he reckoned that come the start of 2012 the government would be lucky to have 200 applicants signed up.
Mr Veitch said the people of NSW were a lot smarter than this government gave them credit for.
“Throwing money at people to move to regional areas is a lazy use of funds. It is no substitute for investing in regional job creating programs that give people meaningful long-term opportunities.
“The best way to spread growth across NSW is to invest in regional skills and business capacity rather than bribe people with a short-term handout.”
The scheme hit a road bump last week when it was revealed that a number of rural and regional communities have been excluded from the Regional Relocation Grants advertising campaign. “This is a massive snub to country NSW,” said Mr Veitch
“Leaked documents reveal that the O’Farrell Government has ordered a last-gasp advertising campaign to try to save the embarrassing scheme which has enticed only 190 people to move to the regions – despite initial projections of 10,000 new ‘tree changers’ per year.
“Despite the advertising push, many rural and regional centres have been completely excluded from the list of recommended towns for people taking up the grant.”
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