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Deputy Prime Minister and Minister for Finance Professor Biman Prasad has announced that approximately $15 million has been allocated for the formalization of six informal settlements in Tavela, Tore, Field 40, Valequyaya, Sakoca, and Vunika.

While addressing the issue of increasing informal settlements, the government will also begin work in four new areas: Lovu Seaside, Nabare, Delaisaweni, and Caubati.

This initiative will lead to the formalization of approximately 1,500 housing leases.

Professor Prasad further states that, in response to eviction notices issued to families in areas such as Nabua Muslim League, Veidogo in Vatuwaqa, and Nadiri, the government is providing $2.2 million in funding for relocation and resettlement.

“Funding will be used to commence critical preparatory work, including consultations with affected communities, land negotiations, and detailed implementation planning to ensure that affected families are provided with secure resettlement options.”

Professor Prasad further says that the VAT refund scheme for home construction will continue.

Under this scheme, any person constructing their first home is eligible for a refund of all VAT paid on construction materials, up to a value of $120,000.

He adds that the scheme is also being expanded to cover the installation of solar power systems on residential homes and the reconstruction of homes destroyed by termites for households with an annual income of less than $50,000.

“This will complement the termite construction subsidy of $5,000 provided to families earning less than $30,000 and $2,000 to those earning between $30,000 and $50,000. Government has allocated $2.9 million towards this, on top of the $5 million that has already been spent when the initiative was introduced.”

Professor Prasad says that the tax incentive available for the development of subdivisions has been extended.

This incentive provides developer profit exemptions and customs duty concessions for land developers investing in residential subdivisions.

He adds that these initiatives have been quite effective in encouraging investors to create additional residential lots and in increasing the overall stock of housing in Fiji.

Professor Prasad further states that the current low-interest rate environment remains conducive for housing finance, with home loans being offered at just below 4 percent by commercial banks.

He adds that, to support low- and middle-income families with home deposits, the government will continue the First Home Buyers Grant.

For those earning below $50,000, a government grant of $30,000 is available for first home construction, while $15,000 is provided for the purchase of a first home.

For those earning above $50,000 but less than $100,000, a grant of $20,000 is available for first home construction and $5,000 for first home purchase.

This initiative will continue with a budget allocation of $3.5 million.

He says that, apart from the Housing Authority and PRB, the government is also collaborating with key partners and other private sector stakeholders to deliver affordable housing solutions.

Around $4 million has been allocated for these partnerships.

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