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Industry bodies have urged the government to address financial barriers hindering home ownership and housing supply, and provide transparent and consistent reporting on housing target process at state and local levels.
On 16 October 2024, the Senate inquiry into the impact of Australia’s financial regulation on home ownership, held by Senator Andrew Bragg, opened the floor for commentary from organisations that provided submissions into the inquiry.
Speaking at the hearing, the chief executive of the Property Council of Australia (PCA), Mike Zorbas, stressed that boosting supply should be the primary focus of governments at all levels, with access to finance “second to supply efforts”.
“Housing targets are our main hope of leaving the federal, state and local government blame
shifting of the last few decades behind us,” Zorbas said.
Though he acknowledged that financial access should certainly be a part of the conversation in looking at the entire housing ecosystem.
“We need to ensure that home loans are not just for the wealthy, and that we are giving first
home buyers a realistic chance at accessing credit for housing,” he said.
The industry leader argued for policymakers to look “holistically at the purchase process”, noting that there are many elements that present barriers to first home ownership.
“Low saving rates with large deposit requirements, and taxes and charges that amount to a third of the price of new homes all serve as blockers to home ownership,” he said.
Representing Master Builders Australia, national director - industry policy, Alex Waldren, similarly argued for “an environment that enables all forms of investment, whether they be private, institutional or public, is needed in the Australian context to sustain the unmet need and future demand for housing”.
Waldren also stressed the tax issue and advocated for a review on taxation policy around housing, stating that the addition of further tax at a federal level, alongside changes to negative gearing and capital gains tax concessions, could “add to the tax burden and reduce housing supply”.
While Waldren acknowledged the positive impact of the government’s investment in housing, she stressed that these efforts will be hindered by barriers such as “prolonged labour shortages, persistence of materials, price growth and industrial measures”.
“Existing housing supply measures are needed to address ongoing shortages and future demand. Scalability is crucial, with a combination of housing availability and productivity, it is key to success.”
The Senate’s report on the inquiry into the impact of Australia’s financial regulatory framework on home ownership is currently scheduled to be released on 5 December 2024.
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