Federal incentives can unlock housing supply

According to the last report of the National Housing Supply Council an extra 160,000 homes are needed every year to 2031 to meet demand in Australia.

And that’s under a medium-growth scenario.

But our systems and governments have consistently failed to match demand for housing with strong and sustained supply pipelines – creating a barrier to workforce participation and mobility, and hampering productivity.

Improving housing outcomes can unlock potential economic gains of around $3 billion a year, according to recent modelling done by Deloitte Access Economics for the Property Council.

The report – A Federal Incentives Model for Housing Supply – draws on competition policy principles to outline an incentives-based model that would drive housing supply and improve affordability in partnership with the states and territories.

The model would:

• Set clear targets for housing supply
• Require the states to make reforms to planning systems
• Establish performance benchmarks for processes and outputs
• Use transparent data to measure progress
• Allow the Commonwealth to recognise best practice in planning, zoning and delivery of more housing through targeted incentive payments.

This report forms an important part of the Property Council’s advocacy platform in the lead up to the Federal Election, so it is pleasing to see Treasurer Morrison make reference to it in his remarks at the recent Treasurer’s debate. 

Download a copy of the report below.