{{propApi.title}}
{{propApi.text}} {{region}} Change location{{propApi.title}}
{{propApi.successMessage}} {{region}} Change location {{propApi.title}}
{{propApi.text}} {{region}} Change location{{propApi.title}}
{{propApi.successMessage}} {{region}} Change locationHousing industry urges Government to keep SMSF finance flowing to new homes
Housing industry urges Government to keep SMSF finance flowing to new homes
Member and guest login
Enter your email and password to access secured content, members only resources and discount prices.
Did you become a member online? If not, you will need to activate your account to login.
If you are having problems logging in, please call HIA helpdesk on 1300 650 620 during business hours.
Forgotten password
Need some help?
If you are having problems logging in, please call HIA helpdesk on 1300 650 620 during business hours.
If the email address you have entered is registered, you will receive an email with further instructions.
Become part of the HIA community
Enables quick and easy registration for future events or learning and grants access to expert advice and valuable resources.
Create a guest account
Enter your details below and create a login
Send me exclusive tips, early access to new launches, and special offers. I can change my mind at any time.
By clicking Get started now you agree to the terms and conditions and privacy policy.
From this week, SMSFs can no longer enter into new Limited Recourse Borrowing Arrangements (LRBAs) to finance residential property.
Industry data indicates that SMSF borrowing directly financed the construction of thousands of new detached homes each year and facilitated an even larger volume of apartment commencements. These new homes provide a pathway to homeownership and support the rental market.
With a third of Australians renting and cost of living pressures particularly for those Australians that do not own their home and thus experiencing housing insecurity, this ban does not just adversely impact housing supply at aggregate, it impacts intergenerational fairness and financial wellbeing of working Australians.
The housing and finance industry is urging the Government, at a minimum, to permit SMSF borrowing for newly constructed homes while Treasury undertakes and publishes a comprehensive assessment of the impact of the ban on detached home commencements, apartment construction, project pre-sales, rental supply and progress towards the Government's 1.2 million homes target.
Restricting investment in established homes still adversely affects new housing supply. But restricting finance for a home that has not yet been built means the policy reaches directly into the new-home market and contradicts the Government’s own tax reforms designed to encourage new housing.
At a time when Australia is already struggling to build enough homes, there should be a clear and public justification for any policy expected to reduce the building of new homes.
The review should also demonstrate a clear net public benefit sufficient to justify restricting Australians from using SMSF borrowing to build new homes.
If the evidence demonstrates a clear net public benefit from extending the prohibition to newly constructed homes, the Government can make that case publicly. Until then, SMSFs should, as a minimum, not be banned from borrowing for residential property and be allowed to continue to borrow to build new homes.
Australia should not sacrifice additional housing supply before the Government has demonstrated that a clear public benefit from doing so.
A Joint statement from:
Australian Finance Industry Association
Housing Industry Association
Property Council of Australia
Real Estate Institute of Australia
Self Managed Super Fund Association
Urban Development Institute of Australia.
For more information please contact:
Housing industry urges Government to keep SMSF finance flowing to new homes
The housing industry is calling on the Australian Government to allow self-managed super funds (SMSFs) to continue borrowing to build new homes, at least until the impact of its new borrowing restrictions on housing supply is independently assessed and made public.
Bragg NCC plan puts spotlight on need to stop the regulatory escalator
“HIA welcomes Senator Andrew Bragg putting National Construction Code reform squarely at the centre of the housing affordability and productivity debate,” said HIA Chief Executive – Industry & Policy, Simon Croft.
You can't fix housing affordability without fixing productivity
HIA has welcomed the interim report of the Senate Select Committee on Productivity in Australia, saying it confirms housing affordability and supply are now critical determinants of the nation's economic performance.
Builders want to build: call on Victorian parties to ‘do no harm’ ahead of election
Ahead of Victoria's November election, the Housing Industry Association (HIA) is calling on all political parties to commit to one simple, low-cost principle that would provide immediate relief to the state's housing sector and small businesses: do no harm.