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Support more social housing

Support more social housing

Underinvestment in social and community housing has persisted for decades and has diminished the capacity of the sector to meet demand for supported housing.

Between 2014 and 2020, the number of Victorian households residing in public and community housing declined. However, the waiting list for public housing continues to increase.

Provision of social housing is an important function of the government to fulfil a whole of community need. There must be an appropriate long term funding mechanism to achieve this. The proposed Social and Affordable Housing Contribution was fundamentally inappropriate. The burden of this tax would have been borne exclusively by those who purchased a new home each year presenting a large tax burden on a small segment of Victorian home buyers. This would have been inequitable and would have resulted in a reduction of private housing, further adding to the pressure for subsidised housing.

Like other essential community infrastructure where costs are shared broadly across the economy, it is appropriate that the cost of new social housing and costs of maintaining the existing stock is shared across the entire community.

Revenue to support the supply of social housing should be raised through whole of community funding.

Affordable housing targets and quotas requiring a percentage of affordable housing in new developments, which are often applied through planning permits, are also not a long term solution. In reality they push up the price of other homes in the same development that will need to be sold at a higher price point to subsidise the target or quota which will be sold for less.

Working in partnership with the housing industry is vital to achieving an increase in the supply of social and affordable housing over the next term of government.


HIA calls on an incoming government to


Develop a comprehensive funding package to equitably raise revenue to fund and facilitate new supply of social housing

Continue to work with community housing providers and the National Housing Finance and Investment Corporation to identify and facilitate new supply of community housing

Continue to progress reforms to facilitate build-to-rent developments for affordable rental housing and create safeguards to ensure that such projects bring additional housing to market and do not substitute or crowd out developments that would otherwise have been offered to owner-occupiers and individual investors.