The Centre for Economic Development of Australia (CEDA) Housing Australia report released today reaffirms the Turnbull Government’s comprehensive and targeted approach to reducing pressures on housing affordability.
In its report, CEDA has recognised that a lack of housing supply, particularly in our capital cities, and strict planning and zoning regulations are central to many of our housing affordability challenges.
This highlights Labor’s ‘silver bullet’ negative gearing housing tax will make the housing affordability pressures Australians face even worse. In fact, we know it will do nothing to increase supply and instead push investors into new residential estates and developments, locking out first home buyers, and drastically hiking up rents.
In contrast, the Government is taking real steps to alleviate pressures on housing affordability and give Australians a realistic opportunity to own their own home.
That’s why the Government announced a suite of measures in the Budget to unlock supply in the right places, which include:
- Establishing a $1 billion National Housing Infrastructure Facility to provide a range of financing options to local governments to bring forward supply.
- Releasing surplus Commonwealth land for housing development, including 127 hectares Defence land in Maribyrnong which could accommodate up to 6,000 new dwellings;
- Working with state and territory governments to negotiate a new outcomes-based National Housing and Homelessness Agreement, and;
CEDA’s report also highlights the need for action on affordable housing for low income earners. The Government is working to improve housing outcomes for those most in need through a suite of measures to boost investment in affordable housing, which include:
- Providing an additional $375 million over three years from 2018–19, maintaining the current $115 million of annual homelessness funding currently provided under the National Partnership Agreement on Homelessness;
- Establishing a National Housing Finance and Investment Corporation to operate an affordable housing bond aggregator to provide cheaper and longer-term finance to registered providers of affordable housing;
- Providing an additional 10 per cent capital gains tax discount to resident individuals investing in qualifying affordable housing; and
- Enabling Managed Investment Trusts to acquire, construct, or redevelop affordable housing to hold for long-term rent.
This complements other measures the Government is introducing to create the right incentives for home ownership, including through the First Home Super Saver Scheme, reducing barriers to downsizing and tightening rules for foreign property investors.
We are taking real steps to address challenges across the entire housing spectrum, from first home buyers, to renters, to those looking to downsize, to those in social and community housing, and those suffering homelessness.
In contrast, Labor and Bill Shorten want to take a chainsaw to the housing market and tax hardworking Australians out of home ownership.