The McGowan Labor Government has committed an additional $408 million towards housing and homelessness measures in the 2022-23 State Budget to build safe, strong and fair communities.
The investment is headlined by a new $350 million Remote Communities Fund, which will support improved water, power and municipal services, and increase housing availability in remote Aboriginal communities.
In addition to the new investments, the McGowan Government has announced a range of new tax reform measures, which will promote greater housing diversity and affordability.
This includes changes to land tax to promote more build-to-rent developments, which will assist with the long-term supply and affordability of rental accommodation in Western Australia.
Build-to-rent is a relatively new model of urban housing in WA, where apartments are developed for the purposes of renting rather than being onsold.
The State Government will also pilot a new Keystart product, targeted at assisting low and middle income earners to purchase medium and high-density housing in inner-city Perth and METRONET precincts, as well as other priority urban infill areas.
$19.1 million will also be invested to develop new residential land in the key regional cities of Karratha and Kalgoorlie. The investment will release 62 new residential lots in Karratha’s Madigan Estate and 35 new residential lots in Kalgoorlie’s GreenView Estate.
Other new measures announced in the Budget are:
- $19.7 million for the delivery of a Perth Aboriginal Short Stay Accommodation facility;
- a 50 per cent land tax concession for new build-to-rent developments;
- enhancement of transfer duty rebates for off-the-plan apartment purchases to help promote more investment in high-density developments, including a 100 per cent rebate for apartments valued up to $500,000;
- Keystart’s income eligibility limits will be permanently increased to $105,000 for singles and $155,000 for couples and families; and
- a new Keystart pilot product aimed at supporting medium and high-density living around transport hubs.
The new measures complement a number of existing investments in housing and homelessness, including:
- $2.1 billion worth of investment in social housing, which will include the delivery of 3,300 new homes;
- $45 million in the coming financial year for a continued spot purchasing program for new social housing;
- $38 million for the delivery of two Aboriginal Short Stay Accommodation facilities in Geraldton and Kununurra; and
- more than $70 million for the delivery of two new Common Ground homeless facilities in Perth and Mandurah, to provide 162 apartments and wrap around supports for rough sleepers. This includes $8 million in Commonwealth funding through the Perth City Deal.
The additional $408 million takes the housing and homelessness investment from the past two State Budgets to $1.3 billion.
For more information, visit https://www.ourstatebudget.wa.gov.au
As stated by Premier and Treasurer Mark McGowan:
“Our Government is committed to building safe, strong and fair communities, and supporting the wellbeing of vulnerable Western Australians.
“In the past two years, we have committed nearly $1.3 billion to housing and homelessness measures across the State – including the single largest one-off investment in social housing by any Government in WA.
“The commitments in this year’s Budget complement the significant program of work already underway, including $2.1 billion worth of investment in social housing and more than $70 million for the delivery of two Common Ground facilities in Perth and Mandurah.
“We’ll continue to advocate for the Federal Government to provide adequate funding for remote communities, which has historically been a Commonwealth responsibility.”
As stated by Housing and Homelessness Minister John Carey:
“This Budget delivers some significant outcomes for improved housing availability and affordability across our State, including in key regional locations.
“The $350 million Remote Communities Fund will significantly improve water and power infrastructure in remote Aboriginal communities, as well as expanding the number of available homes.
“We’re also continuing our significant reforms to housing delivery in Western Australia, with a 50 per cent cut to land tax to promote build-to-rent developments, a housing option that is well-established in other parts of Australia but less used in WA.
“All of the measures complement the significant amount of investment our Government has made to expand housing across Western Australia, including $2.1 billion for social housing, more than $70 million for two Common Ground facilities and our Government’s Housing Diversity Pipeline.”
