Senate report puts spotlight on affordability

Forty recommendations to boost housing affordability are outlined in a new report handed down last week by the Senate Economics References Committee.

The recommendations in Out of reach? The Australian housing affordability challenge include appointing a federal minister for housing, establishing a ministerial council on housing and homelessness, and addressing rental affordability.

The report concludes that the housing market is “not meeting the needs of all Australians” and that the “stock of affordable housing”that is, housing appropriate to the needs of low- to moderate-income households”has failed to keep pace with demand.”

Property Council of Australia chief executive, Ken Morrison, says the report should elevate the public debate on solutions to housing affordability.

“It’s a wake-up call that recognises the fundamental importance of boosting new housing supply if we are to have any hope of addressing affordability,” Morrison says, adding that “all three tiers have a role in fixing this national issue.”

The Property Council has called on the Federal Government to “kick-start reform” by seeking a new competition agreement with the states and territories, with incentive payments for achieving best practice planning reform.

“Tax reform, infrastructure investment, zoning more land for housing and planning reform are the key pillars to making housing more affordable,” Morrison says.

“It is particularly pleasing to see the phasing out of ineffective taxes such as stamp duties recognised.”

The Committee that produced the report has a majority of ALP Senators. Government Senators on the committee provided a dissenting report, which recognised supply as a key issue for affordability but failed to support most of the recommendations put forward.

One of the few recommendations to receive bipartisan support, however, was removing the disincentive for pensioners wanting to downsize.

“Housing affordability is squarely on the national agenda, with supply constraints recognised by all parties as the key barrier to improved affordability. The debate now is over implementing the best solutions,” Morrison concludes.