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With the federal election fast approaching, the Real Estate Institute of Australia (REIA) has released a seven-point election commitment plan urging policymakers to address supply issues and improve affordability.
REIA’s seven-point election commitments aim to improve housing affordability, increase supply, and ease regulatory burdens on the real estate sector to benefit Australian families and the economy, the industry group explained.
REIA president Leanne Pilkington emphasised the urgency of the issue.
“The housing crisis in Australia demands urgent and effective action. Our Election Commitment Requests presents clear, actionable strategies that will address these critical issues and deliver tangible benefits for Australians across the nation,” she said.
“The plan calls for significant reforms that will help solve our housing shortage and reduce the financial pressure on renters and home buyers.”
According to the REIA, housing affordability has reached its lowest point since 1996, with mortgage repayments consuming a growing share of household incomes and rental stress on the rise.
Pilkington noted that addressing these issues requires substantial reform.
The key elements of REIA’s plan include the following initiatives:
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Fast-tracking housing supply
As a key focus, the REIA called for the implementation of the National Housing and Homelessness Plan, including the accelerated delivery of 1.2 million homes under the National Housing Accord, which focuses on meeting housing demands over the next five years. The plan also encouraged downsizing incentives for older Australians to free up larger homes for younger buyers.
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Supporting first home buyers
Expanding deposit assistance programs and revising the Australian Prudential Regulation Authority (APRA) lending criteria are among the REIA’s proposals to support young Australians and key workers entering the property market. The plan builds on initiatives such as the 2023–24 Home Guarantee Scheme.
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Expanding build-to-rent developments
The REIA advocated for policies to support institutional investment in build-to-rent (BTR) projects, helping to alleviate the shortage of rental properties. The institute called for the retention of existing tax settings and greater institutional investment to boost and sustain the supply of long-term rental housing.
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Ensuring tax stability
The REIA advocated for the retention of current negative gearing and capital gains tax exemptions to maintain investor confidence and market stability. The institute noted these polices are vital for ensuring continued investment in the rental market and avoiding upward pressure on rents.
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Phasing out stamp duty
The REIA urged an inquiry into the property tax frameworks with the long-term goal of phasing out stamp duty, which it argued would reduce property transaction costs and improve housing accessibility.
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Supporting small businesses
Recognising that many real estate agencies are small businesses, the REIA pushed for reduced regulatory burdens, particularly regarding new anti-money laundering and counter-terrorism financing obligations. The REIA highlighted these changes will “encourage small businesses’ compliance while promoting sector compliance”.
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Workforce capability
To build a skilled workforce for Australia’s $3 trillion rental market, the REIA advocated for the inclusion of real estate professionals, including property managers, on the Skilled Occupation List and the Australian Apprenticeships Incentive System Priority List.
Pilkington underscored the importance of workforce development as the real estate industry is crucial in managing Australia’s housing market. She noted that strengthening workforce capabilities through targeted policies is essential to sustaining the industry’s growth and stability.
Pilkington stressed the broader economic impact of the proposed reforms.
“By advocating for these reforms, REIA is not only aiming to resolve immediate housing market challenges but also laying the foundation for long-term housing stability and growth,” she said.
REIA’s plan offered a detailed solution to supply challenges, positioning the real estate sector as a crucial player in tackling the housing crisis.
Pilkington noted that the proposals aim to guide political parties and independent candidates in the lead-up to the next federal election.
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