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Housing supply underpins housing affordability and Australia’s home ownership rate. Ensuring housing supply by responding to changes in demand in a timely way should be the basis for all government actions that influence the housing market.
Supporting the delivery of all forms of homes along the housing continuum must also be a priority. If supply falls in any one sector, it will directly affect the affordability of housing in each of the other sectors.
The pandemic has directly changed people’s approach to housing. The type of home people prefer, the location and the way they use their home have all changed. A home has always been our haven – post pandemic, many more Australians also see their home as their workplace, their retreat and they have refocused on their home as a key part of their future financial stability.
Property taxes are an important source of revenue that governments use to fund essential services, however the quantum of taxes on housing are excessive and inefficient. The high levels of tax inhibit supply and detract from the capacity of the industry to deliver affordable housing to the market. Housing is already the second most heavily taxed good in Australia – it must not become the highest.
The policy settings that emerge from governments over the next five years must recognise ‘housing matters’ and set the scene for success.