The targeted use of the First Home Buyers Grant of $10,000 for new homes and apartments by the Victorian Government in the State Budget would create an important economic lever to lift housing starts in Victoria, the Urban Development Institute of Australia (UDIA) said today.

Executive Director of the UDIA (VIC) Tony De Domenico said, "The boosting of new home starts has a domino impact on the economy because of the wide number of employees, suppliers and service industries involved, with many being in small business.

"The $10,000 new First Home Buyers Grant will also boost confidence among first home buyers."

Mr. De Domenico said, "The focus on transport infrastructure, schools and hospitals in this May Budget needs to become a long term bi-partisan action plan to maintain the livability and competitiveness of Victoria with certainty to encourage investor confidence.

"With Victoria's rapidly growing population there is also a serious issue to maintain housing affordability and spread the cost of new infrastructure in growth corridors across the wider community to ensure housing is not priced out of the market by government agencies and local government charges.

"The Victorian Budget today is an important part of re-invigorating the development industry in Victoria and complements the ongoing reform and restructure of the planning process to cut red tape and costs by streamlining and organising planning processes into a more logical framework."

Mr. De Domenico said the Victorian development industry directly employs around 310,000 full time employees, contributes around 12 per cent of the state's gross domestic product and $4.6 billion in taxes to all tiers of government.

Media Enquiries:
Ron Smith, Corporate Media Communications, UDIA (VIC) - Mobile: 0417 329 201