Scott Morrison has wasted little time in identifying one of his key priorities as the country’s new Treasurer: housing affordability. To achieve this, he is partnering with the states to increase the supply of new homes and release more land for housing.
Industry information suggests that while the demand for new houses and better living conditions have increased over the past years, supply has remained static and unable to meet the market’s growing needs.
Morrison had previously brought the issue to the government’s attention during Tony Abbott’s prime ministership—a notable attempt, as housing was not previously featured on the agenda.
The new Treasurer is adamant about pursuing the house price increase issue since the problem exacerbates homelessness, another costly concern.
Property Council chief executive Ken Morrison is all for the Treasurer’s crusade for housing affordability.
“It is absolutely time to start targeting the supply of new homes which is the real culprit for increases in house prices,” he said.
“One or two years of record high construction levels won’t make up for a decade of underbuilding.
The chief executive offers ideas of his own that could help the market: “Introducing incentives to encourage states and territories to reform their planning systems and promote housing supply based on the model that achieved success in bringing on critical infrastructure investments could accelerate this process,” he said.
He also suggests tax reforms wherein taxes that impede growth and only raise the costs of living (such as stamp duty) should be excised.
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