Housing leaders urge Coalition to reconsider stance on 80,000 new homes
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In a heated debate over Australia’s housing future, industry leaders are urging the Opposition to reconsider its stance on a policy reform that could potentially block the construction of 80,000 new homes. The controversy centres around the Labor Government’s proposed changes to the build-to-rent scheme, which would include tax cuts for foreign investors.
Shadow Minister for Housing Andrew Bragg has been vocal in his opposition to the reforms, announcing on July 29 that the Coalition will move to disallow these changes. Mr Bragg argues that the proposal undermines the traditional “Australian Dream” of home ownership, favouring foreign landlords and large corporations over local interests.
“Labor’s foreign investor tax cut promotes the Australian nightmare of lifelong renting over the Australian dream of home ownership,” Mr Bragg stated. “Labor’s obsession with foreign landlords and big super taking over Australian housing once again prioritises vested interests over Australia’s national interest.”
He further emphasised the Coalition’s commitment to home ownership across all age groups, noting, “While the Coalition strongly supports foreign investment, it needs to fit with Australian culture and expectations. Labor should … be working with the home building sector to turn around the slump in housing construction which has coincided with the largest population surge since the 1950s.”
The motion has sparked significant backlash from key figures in the housing industry. Mike Zorbas, chief executive of the Property Council of Australia, described the Coalition’s approach as a “wrecking ball policy,” stressing the urgent need for new housing supply. “The main game, the only game in Australia right now, should be the rapid supply of new housing … we need to make owning a home as easy as we can,” Zorbas argued.
He highlighted the critical gap in housing supply, noting that Australia is building homes at half the rate it was in 1995. “Australians expect the Parliament to pull every supply lever we can to make homes less expensive for people who need to buy or rent,” Zorbas added. “Threatening to knock out 80,000 new rental homes will directly raise the cost of new homes for everyone in the market.”
Echoing similar sentiments, Urban Taskforce Australia CEO Tom Forrest criticised the Coalition’s motion as a “throwback to the failed housing policies of the Dutton leadership” and urged it to be disregarded. “The Liberal Party is taking an ill-conceived, ideological stance, made worse by a none-too-subtle xenophobic attack on foreign investment,” Forrest stated. “Australia needs all the investment it can get when it comes to housing supply.”
Forrest emphasised the benefits of both build-to-sell and build-to-rent developments, asserting that both are essential for meeting the nation’s housing needs. “When it comes to housing, people benefit from the construction of both build-to-sell and build-to-rent dwellings,” he said.
The timing of the Coalition’s announcement is particularly noteworthy, coming just days after developers apt.Residential confirmed securing three prime build-to-rent sites in Bondi Junction, with plans to develop 900 apartments. The developer also acquired a site for a build-to-rent project in Ultimo earlier this year.
As the debate intensifies, Mr Bragg has called for a comprehensive discussion on the government’s housing policies in the Senate. “The Coalition invites a serious debate about the government’s housing record in the Senate and we seek the chamber’s support for our disallowance motion,” he declared.
The outcome of this political standoff could have significant implications for Australia’s housing market, particularly at a time when the nation faces a pressing need for more affordable housing options. As stakeholders on both sides of the debate continue to voice their perspectives, the future of the proposed 80,000 new homes hangs in the balance.