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Outsourcing housing supply to the private rental market is costing Australia 500,000 social homes, says community coalition.
Everybody’s Home, a coalition of community partners including The Salvation Army and National Shelter, has called on the federal government to “scrap investor handouts” and build more social homes.
In 1982, the Australian government spent $164 per person on public and community housing. In 2022, that number had dropped to just $61 per person, taking inflation into account.
Instead of building social housing directly, Everybody’s Home explained that the Australian government “is subsidising the private rental market” through tax concessions.
The coalition stated that policies like negative gearing tax deductions and capital gains tax discounts are costing the government substantial amounts in foregone revenue.
Between 2010 and 2033, Everybody’s Home calculated that the national budget would lose $228 billion to investor tax concessions.
Maiy Azize, spokesperson for Everybody’s Home, warned: “Tax handouts for investors will be a quarter of a trillion dollar mistake if the government doesn’t change tack.”
“Giving money to investors is a choice,” she said. “If the government wants to make housing more affordable and fairer for all Australians, it can choose to put money into homes instead of investor profits.”
According to Everybody’s Home, tax breaks for investors outstrip federal spending on social housing at least five times over.
“Federal governments have walked away from supplying social housing,” said Ms Azize. “Instead they have prioritised the profits of property investors, pushed up the cost of housing, and made wealth inequality worse.”
Homelessness NSW CEO Dom Rowe reiterated these views, explaining that direct construction of public homes by governments could provide essential housing to Australia’s most vulnerable families.
“The failure to invest in social housing by all levels of government in recent years is a massive contributor to our homelessness crisis,” said Mr Rowe.
“We desperately need more social housing so vulnerable people, including mothers and children fleeing domestic violence, can get out of homelessness and into a safe and secure home.”
If the federal government ended negative gearing and capital gains tax concessions, and used the revenue savings to build social homes, Ms Azize stated: “This would held end Australia’s massive social housing shortfall, and help reach the goal of another 1 million social homes within the next 20 years.”
“The government must take action to make housing affordable,” she said. “We’re calling on them to use this week’s talks to abolish unfair tax handouts and build the homes we need.”
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