Treasurer on right track on housing affordability

Treasurer Scott Morrison has immediately zeroed in on the solution to housing affordability challenges – a partnership with states to increase the supply of new homes.

Property Council chief executive Ken Morrison welcomed the Treasurer’s focus on housing affordability and tax reform in comments published in today’s Daily Telegraph.

“It is absolutely time to start targeting the supply of new homes which is the real culprit for increases in house prices,” Mr Morrison said.

“New supply is finally taking the heat out of prices and governments need to ensure our current strong construction activity continues.

“One or two years of record high construction levels won’t make up for a decade of underbuilding.

“The pressure will only come off prices if we keep up the supply pipeline of new homes, to address previous shortages and keep pace with population growth.

“In his second day on the job the Treasurer is already zeroing in on supply side solutions, bringing the states into the tent and looking to release more land for housing.

“Introducing incentives to encourage states and territories to reform their planning systems and promote housing supply based on the model that achieved success in bringing on critical infrastructure investments could accelerate this process.

“Refocussing tax reform on the outcome rather than the process is a move we welcome.

“Getting rid of taxes that hinder growth and add to the cost of living, with stamp duty being one of the worst offenders, should be the end result government is aiming for.”

Media contact:  Fiona Benson |M  0407 294 620  |E  [email protected]