The Real Estate Institute of Australia (REIA)has welcomed the handing down of the Inquiry into housing affordability andsupply in Australia report by the Standing Committee on Tax and Revenuewhich reported 16 intersecting recommendations for the Federal Governmentsattention.
REIA President Hayden Groves said thathousing has become a political football at a time housing affordability isdecreasing, inflationary pressures are rising and listings across the countryremain limited.
He said the fundamentals of supply,affordability and the great Australian dream of home ownership need bipartisansupport across Australia.
The COVID-19 pandemic allowed us to lookat housing in an entirely new way and give it the attention it deserved.
At the height of the pandemic, homelessnesschallenges were addressed immediately and Australias 40,773 strong propertymanagement workforce stepped up and managed an imposed rental evictionmoratorium.
“State and Federal Governments introduced 17programs to assist first home buyers achieve their dream of owning their firsthome and they returned to the market in droves, Mr Groves said.
All levels of government needto be aligned
REIA supports the majority of the 16 finalrecommendations which directly related to the Institutes three recommendationsto the Housing Inquiry to encourage housing supply and affordability.
Critically, it identified there is nodoubt that there is a gap in government coordination and an overwhelming needfor all levels of government to be better aligned and coordinated on allaspects of housing in Australia
Mr Groves said REIA advocated for policiesto enable supply, to build more houses and to get government right, includingphasing out stamp duty on a coordinated national basis.
All three of these recommendations havebeen met within the Committee report and deliver a roadmap to significantlyincrease housing supply and therefore affordability through policy reform, MrGroves said.
National approach to stampduty needed
REIA supports the approach for a nationalstrategy on stamp duty.
Mr Groves said a coordinated nationalapproach was needed to phase out this antiquated tax that prevents Australiansfrom moving houses and getting new jobs.
Stamp or transfer duties now total onaverage four per cent of the cost of a home with a recent survey indicatingthat over 90 per cent of first home buyers say this is a major deterrent tobuying a home.
“Consultation is needed as to whether thisis captured by a land tax or a broader based tax.
This will require leadership from all ofAustralias State and Federal Treasurers to achieve what the introduction ofthe GST promised to do and failed: axe the tax, Mr Groves said.
In 2021, the National Housing Finance and InvestmentCorporation provided an excellent case for change in their paper Stamp Duty:Benefits and Challenges outlining key benefits to stamp duty reform. This includedincreased mobility, inefficient use of housing stock, large economic cost,volatile revenue source and inefficient base.
Mr Groves said that productivity incentives and innovationsfor State Governments to enable supply are greatly needed as is a review of theBuild-to-Rent sector and moves to provide more Rent-to-Buy stock forAustralias key workers.
The complexity and breadth of the 16 recommendations justreinforce the need for a national plan for housing affordability and supplywith both Federal and State Governments held accountable.
It is a myth that private sector and social and affordablehousing cannot coexist. The reality of the matter is we need increased socialand affordable housing stock and increased private stock with up to 1.6 millionnew homes needing to be built by 2030.
They are not mutually exclusive and in fact need to beconsidered together in order to achieve the right supply mix for all so everyAustralian has a home, Mr Groves said.
