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{{propApi.successMessage}} {{region}} Change locationMissing Middle planning reforms progress but tax settings still threaten delivery
Missing Middle planning reforms progress but tax settings still threaten delivery
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The Housing Industry Association (HIA) has welcomed the ACT Government’s decision to progress the Missing Middle Housing reforms. This is a critical step toward increasing housing supply and improving housing choice across Canberra.
Friday, 22nd May 2026
“The Government should be commended for continuing to progress reforms that are central to the Territory’s long-term housing strategy,” said HIA Executive Director ACT & Southern NSW, Geordan Murray.
“These reforms are essential if the ACT is serious about increasing housing supply and delivering greater housing choice within established suburbs.
“For too long, the planning system has constrained the development of medium-density housing typologies such as terraces, townhouses and low-rise multi-unit developments in areas where this type of redevelopment is entirely appropriate.
“Whether Canberra can achieve the target of 30,000 homes by 2030 is highly dependent on the success of the Missing Middle reforms.
“The supply of new homes in greenfield developments has been dramatically reduced in anticipation that increased housing delivery within existing suburbs would offset those declines.
“The next step is to ensure that these reforms don’t just exist on paper — they must translate into real, feasible housing projects that actually proceed to construction and panning reform alone will not be sufficient.
“Increasing development capacity through planning reform while retaining punitive Lease Variation Charges will greatly diminish the impact of these reforms. The LVC acts as a direct disincentive to infill housing delivery.
“You cannot encourage redevelopment with one hand and penalise it with the other.
“At a time when construction costs, financing pressures and feasibility challenges are already placing significant strain on housing delivery, retaining a punitive tax on infill risks undermining the very outcomes these reforms are designed to achieve,” Mr Murray concluded
“These reforms are essential if the ACT is serious about increasing housing supply and delivering greater housing choice within established suburbs.
“For too long, the planning system has constrained the development of medium-density housing typologies such as terraces, townhouses and low-rise multi-unit developments in areas where this type of redevelopment is entirely appropriate.
“Whether Canberra can achieve the target of 30,000 homes by 2030 is highly dependent on the success of the Missing Middle reforms.
“The supply of new homes in greenfield developments has been dramatically reduced in anticipation that increased housing delivery within existing suburbs would offset those declines.
“The next step is to ensure that these reforms don’t just exist on paper — they must translate into real, feasible housing projects that actually proceed to construction and panning reform alone will not be sufficient.
“Increasing development capacity through planning reform while retaining punitive Lease Variation Charges will greatly diminish the impact of these reforms. The LVC acts as a direct disincentive to infill housing delivery.
“You cannot encourage redevelopment with one hand and penalise it with the other.
“At a time when construction costs, financing pressures and feasibility challenges are already placing significant strain on housing delivery, retaining a punitive tax on infill risks undermining the very outcomes these reforms are designed to achieve,” Mr Murray concluded
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