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New polling shows the extent to which housing anxiety has spread across the nation.
Commissioned by the Property Council, a poll conducted by YouGov of 1,500 Australians has shown that eight in 10 residents feel there is a lack of affordable housing in their area, while the high cost of housing is the second most important issue to respondents, after cost-of-living pressures.
The research also revealed that 60 per cent of Australian residents are in favour of the government’s build-to-rent tax changes, which propose to halve the tax that foreign investors pay on build-to-rent projects – from 30 per cent to 15 per cent – bringing it in line with that which is levied against commercial real estate.
The argument for the plan is that foreign capital will serve to turbocharge investment in this market, with modelling from EY suggesting that the tax code alteration could enable the construction of 105,000 new homes over the next decade, which would otherwise not be built.
Only 17 per cent of respondents outright opposed the proposal, while renters are heavily in favour, with 71 per cent urging the legislation to be passed.
It’s the same message delivered by an alliance made up of the Property Council alongside National Shelter and the Community Housing Industry Association (CHIA), which united this week to urge the Senate to pass the build-to-rent legislation with a small tweak.
The housing groups have advocated for a larger tax benefit for developers and a change that would cap “affordable” rents at 30 per cent of a low income-earner's pay.
The alliance hopes this change will appeal to the Greens in the Senate, who have been holding out over the bill, asking that the law mandate a larger proportion of affordable housing to be created by anyone who takes advantage of the tax incentive.
PCA chief executive Mike Zorbas said that the Senate had a “historic opportunity” in front of it to make a material difference in the nation’s housing shortage.
“With the right amendments, this legislation is the best and cheapest way for the Federal Parliament to add 105,000 new rental homes to supply across Australia over the next decade,” Zorbas said.
“This is two-and-a-half times the number of new homes to be delivered under the welcome Housing Australia Future Fund,” he noted.
Wendy Hayhurst, CEO of CHIA, echoed his comments, stating that the Senate “has the power to make a real difference”.
“Passing this bill with our amendments could rapidly inject 1,200 affordable rental homes into the market, providing relief to those facing steep rent increases as the National Rental Affordability Scheme winds down,” Hayhurst said.
In the eyes of John Engeler, NSW CEO of National Shelter, it's a now or never proposition.
“We cannot afford to delay action any longer,” he said.
ABOUT THE AUTHOR
Juliet Helmke
Based in Sydney, Juliet Helmke has a broad range of reporting and editorial experience across the areas of business, technology, entertainment and the arts. She was formerly Senior Editor at The New York Observer.
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