The House of Representatives Standing Committee on Tax and Revenue has today released its report titled The Australian Dream: inquiry into housing affordability and supply in Australia.

Media release issue date: Friday, 18 March 2022

The House of Representatives Standing Committee on Tax and Revenue has today released its report titled The Australian Dream: inquiry into housing affordability and supply in Australia. The report follows a seven-month parliamentary inquiry in which the Committee heard from the Australian Federal Government, state and local governments, industry groups, peak bodies, think tanks, academics, economists, unions, and the general public. In its report, the Committee makes 16 recommendations to improve housing supply and affordability across the country. Chair of the Committee, Mr Jason Falinski MP said, ‘It should not need to be stated, but home ownership matters. It matters for reasons as diverse as wealth equality, mental health, childhood outcomes and democratic stability. But at the end of our months-long investigation, it does need to be reasserted that our nation was founded to be a classless society in which everyone got a chance to own their own home.’ ‘The primary driver of growing house prices is the lack of market response. We need to reform broken planning systems, fix inefficient regulation, and stop new home buyers unfairly bearing the brunt of taxes and charges that are designed to raise funds, not living standards. This report identifies opportunities for all levels of government to unlock more housing supply, create more affordable homes and increase home ownership,’ said Mr Falinski. Many of these recommendations focus on increasing housing supply. By recommending the Australian Government implement policies which financially incentivise state and local governments to adopt better planning and property administration practices, upwards pressure on supply will be mitigated. Further, incentivising state and local governments to directly tie taxes and levies to actual and meaningful infrastructure improvements will also serve to mitigate this upward pressure. The Committee is cognisant of the fact that a housing deposit is the largest barrier for first home buyers. Therefore, one of the key recommendations is that first home buyers be allowed to use their superannuation assets as security for a home loan. The report also makes recommendations regarding emerging housing models in Australia, including rent-to-own and build-to-rent housing. It is evident that there are serious and large-scale issues in Australia’s housing market. In many parts of the country, an increasing number of Australians are struggling to buy a home, find an affordable rental property that meets their needs, and afford housing costs. Meanwhile, home ownership rates continue to fall. This situation has severe implications for us now and future generations. The Committee hopes that this report will pave the way for effective government action and cooperation to address this critical issue, and thanks all of those who contributed to this inquiry. A full copy of the Committee’s report can be found on the Inquiry’s website. Media enquiries Mr Jason Falinski MP Chair of the House of Representatives Standing Committee on Tax and Revenue Jason.Falinski.MP@aph.gov.au (02) 6277 2324 For background information Committee Secretariat 02 6277 4821 TaxRev.Reps@aph.gov.au

The House of Representatives Standing Committee on Tax and Revenue has commenced an inquiry into housing affordability and supply in Australia.

Media release issue date: Monday, 16 August 2021

The House of Representatives Standing Committee on Tax and Revenue has commenced an inquiry into housing affordability and supply in Australia. The Chair of the Committee, Mr Jason Falinski MP, stated that - “As data provided by the Reserve Bank of Australia (RBA), the Treasury and the Australian Bureau of Statistics (ABS) shows, home ownership, one of the building blocks of Australian society, has been falling for the last 30 years. In my view, this represents an urgent moral call for action by governments of all levels to restore the Australian dream for this generation and the ones that follow.” “Arguments about the impact of increased subsidies and tax concessions on housing have continued for some time. There is ample evidence that points to the small effect such measures have on supply, indeed the research points to limitations on land and restrictive planning laws as the major causes of shortages in supply. As consistently noted by the RBA and others, regulatory settings are directly responsible for the unresponsive nature of housing supply in Australia.” “The Organisation for Economic Co-operation and Development (OECD) conducted an analysis of Australia’s housing market, particular its very high ratio of housing prices to household incomes. The OECD concluded that Australia’s unusually high level of inelasticity in housing is the major driver of this ratio. This has resulted in our country having the fourth-fastest house price growth out of the world’s advanced economies over the past 20 years.” “This is best demonstrated by the following fact: total residential private building approvals decreasing 44% across the nation from 2016 – 2020 compared to the previous five-year period according to the ABS. While market supply has collapsed with new home listings down to record lows according to Core Logic using the most recent five-year average.” “It is with this context that the House of Representatives Standing Committee on Tax and Revenue will investigate the impact of tax and regulatory regimes on price, affordability, and supply of housing in Australia today as well as into the future.” Submissions from interested individuals and organisations are invited by Monday 13 September 2021. The preferred method of receiving submissions is by electronic format lodged online using a My Parliament account. Further information about the inquiry including the terms of reference is available on the Committee’s website. Public hearing details Public hearings for the inquiry will be held in due course and notified through the Committee’s website. Media inquiries Mr Jason Falinski MP Chair of the House of Representatives Standing Committee on Tax and Revenue Jason.Falinski.MP@aph.gov.au (02) 6277 2324 For background information Committee Secretariat 02 6277 4821 TaxRev.Reps@aph.gov.au