A proposal for housing supply and affordability reforms will be worked on by Australia’s planning ministers alongside the Australian Local Government Association (ALGA) over the next six months.
The government has already that flagged housing, particularly how it impacts vulnerable groups, will be a priority for this Budget.
ALGA president Linda Scott told The Mandarin the organisation was looking forward to working with ministers to help councils increase affordable housing.
“Many councils are already investing in affordable housing solutions tailored to the needs of our local communities, but ALGA is advocating for a new $100 million per year fund that would support local governments to build on this work and play a bigger role in addressing Australia’s affordable housing crisis,” Scott said.
Renters’ rights will also be looked at by housing ministers as they develop a proposal for the national cabinet in the latter half of the year, with a meeting of those ministers scheduled for this week.
Federal housing minister Julie Collins said the agreement was a “significant step” to giving renters certainty about their tenancy.
Budget measures
The National Housing Finance and Investment Corporation’s liability cap will be increased from $5.5 billion to $7.5 billion as part of the federal Budget next week.
The federal government also announced two further Budget initiatives aimed at build-to-rent housing: one to increase the depreciation rate from 2.5% to 4% per year for properties with construction starting after Budget day (May 9) and one to reduce the withholding tax rate from 30% to 15% for foreign investors’ income for newly constructed residential build-to-rent properties.
The latter policy was included as one of the recommendations of a recent EY report commissioned by the Property Council of Australia.
The Property Council of Australia CEO Mike Zorbas said it was a “strong step” to addressing Australia’s housing shortage.
“More supply means downward pressure on the cost of renting and buying homes and will offer more housing choices and affordable options at a time when we desperately need them,” Zorbas said.
“Build-to-rent housing, like purpose-built student accommodation and retirement living, is a positive part of the national housing equation and provides tenants with long-term security of tenure, superior amenities and professionally managed properties.”
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