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Impediments to housing supply must be addressed

Media release

Impediments to housing supply must be addressed

Media release
Today’s release of the federal inquiry into housing affordability and supply put a number of important recommendations on the table to improve housing supply.

“The recommendations point to the opportunity for the Australian government to play a significant role in ensuring more households are given the opportunity to become home owners." said HIA Managing Director, Graham Wolfe.

“We are pleased to see further recognition of the impact the high impost of upfront taxes and charges have on the affordability of new homes.

“Stamp duty is one of the most egregious offenders. Support from the Australian Government will enable states to accelerate reforms to remove this tax. The recommendation that states reverse the bracket creep that has seen stamp duty costs sky-rocket in recent years is also important recognition of the direct impact this tax has on housing affordability. 

“HIA also welcomes the Inquiry’s focus on reform of development contributions to deliver an equitable and transparent approach to these direct taxes on family homes. While HIA continues to call for these taxes to be removed and a new model for funding community based infrastructure identified, where they remain in place they must have a nexus to the households that pay and a commitment to deliver the infrastructure in a timely way.

“The recommendation that first homebuyers should be allowed to leverage their superannuation as a guarantee for a first home loan reflects HIA’s long held position that there are other ways Australians can be assisted to bridge the deposit gap and achieve home ownership sooner. The Inquiry’s caveat that such a move should only be implemented if the supply of housing can be improved at the same time also reflects a pragmatic approach.

“HIA recently commissioned polling which found that most people feel that owning your home is important to their financial security. The community recognises that both home ownership and superannuation are important determinants of financial security in retirement. 

“The polling also showed that people consider home ownership in their retirement to be equally important as superannuation. Furthermore, the community is concerned that those who do not own their own home will face financial challenges in retirement. 

“The housing affordability challenges facing Australian households can only be addressed if the supply of housing can align with demand. HIA estimates that we will have to build 1.66 million houses by 2030 just to keep up with the demand from population growth. 

“HIA looks forward to working with government to see these recommendations progress,” concluded Mr Wolfe.

For more information please contact:

Graham Wolfe

Managing Director

Joe Shanahan

Manager, Communications & Media
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