Commonwealth offers $3b in housing race incentives

National Cabinet has set a new national target to build 1.2 million new well-located homes over five years, with the Commonwealth committing $3 billion in performance incentives for the states and territories to deliver. The new national target is 200,000 new homes more than agreed under the National Housing Accord last year. The move has been welcomed by the CFMEU Construction & General Division, but will not see it back away from its campaign to introduce an economy-wide super profits tax, with proceeds to be funneled into housing. "We welcome today's announcement but we will continue our 'End the Housing Crisis, Tax Super Profits' campaign, as we have growing inequality in this country and a leading cause of that is corporate profit taking - we need a national reckoning on corporate taxation and the union is not afraid to take up that fight," national secretary Zach Smith said. "Our research has shown us we need to be building 52,600 dwellings each year between now and 2041 to keep up with demand, this will require an investment of $511 billion, or $28 billion per annum. "An economy- wide super profits tax could raise $260 billion over the next decade and considerably more in the decade after that." Prime Minister Anthony Albanese described the moves agreed by National Cabinet as the most significant reforms to housing in a generation. The Commonwealth has committed to $3 billion for performance-based funding, the New Home Bonus, for states and territories that achieve more than their share of the National Housing Accord target. Mr Albanese said this would incentivise states and territories to undertake the reforms necessary to boost housing supply and increase housing affordability, making a positive and practical difference for Australians planning to buy a home. The target would also be supported by the Housing Support Program, a $500 million competitive funding program for local and state governments to kick-start housing supply through payments for things like connecting essential services, amenities to support new housing development, or building planning capability. "The updated target will help align supply with expected demand over the next five years, and when linked with Commonwealth infrastructure funding, will produce more neighbourhoods and communities that have the services they need," Mr Albanese said. National Cabinet also agreed to a National Planning Reform Blueprint with planning, zoning, land release and other measures to improve housing supply and affordability. The package also includes measures to harmonise and strengthen renters’ rights across Australia. This includes moving towards limiting rent increases to once a year and phasing in minimum rental standards.

Commonwealth offers $3b in housing race incentives

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